Mosaic reports production increases on Quarterly January 29, 2009

Mosaic Oil NL (ASX: MOS) highlighted continued production increases on its December Quarterly Report, released today.

The Company remains on-track to implement its strategy of accelerated growth with consistent production increases recorded during the December 08 Quarter. Despite the impact of lower oil prices, increased production in the Surat-Bowen Basin has helped the Company to deliver another strong quarterly result.

Highlights:

• Time adjusted cash receipts of $7.0 million which is the second highest quarterly receipts for the Company
• Mosaic realised an average oil price for the Quarter of US$60.69/bbl or A$89.19/bbl (Sept 08 Quarter – A$154.82/bbl ).
• Cash at the end of the Quarter was $15.27 million.
• Overall production was 26% higher (on a BOE basis) than the previous quarter.
• Gas production increased by 35% due to production from Taylor-19.
• Mosaic continued to evaluate domestic and international exploration and production opportunities.

Mosaic Oil will continue to focus on unlocking shareholder value through an accelerated drilling campaign for the 2009-2010 period.

While pricing for oil declined materially during the quarter, Mosaic Oil is confident that improved gas markets will continue to allow the Company to deliver sound financial results.

Click here to read the full announcement.

For further information, please contact:

Lan Nguyen
Managing Director
Mosaic Oil
Ph: +61 2 9247 9324

or

Bill Kemmery
Fortbridge
Ph: +61 2 9331 0655
Mob: +61 400 122 449
Email: bill.kemmery@fortbridge.com