Full ownership of Churchie Field caps off another good quarter for Mosaic Oil April 29, 2009

Mosaic Oil NL (ASX: MOS) has increased production in the Surat-Bowen Basin and has delivered another strong quarterly result, despite the lower prices currently being achieved for oil.

Highlights of the March 2009 quarter include:

• Cash receipts of $6.7 million (excluding revenue from Santos’ Churchie field interest acquisition) which is the second highest quarterly receipts for the Company
• Mosaic realised an average oil price for the Quarter of US$48.81 per barrel or A$74.59 (Dec 08 Quarter US$60.69/bbl or A$89.19/bbl).
• Cash at the end of the Quarter was $15.08 million.
• Overall production was 14% higher (on a BOE basis) than the previous quarter.
• Gas production increased by 17% due to the acquisition of a 51% interest of the Churchie field.
• Mosaic Oil acquired Santos’ interests in several assets in the southern Surat-Bowen Basin.
• Mosaic Oil continues to evaluate other domestic and international exploration and production opportunities.
• Pre-FEED Technical and commercial work continued on the underground gas storage project in the Silver Springs-Renlim gas field.
• New drill campaign launched at end of quarter.

Mosaic Oil acquired Santos’ interests in several production licences with the associated pipeline licences, production facilities, gas sales contracts and exploration permits in the southern Surat-Bowen Basin.

Pre-FEED Technical and commercial work continued on the underground gas storage project in the Silver Springs-Renlim gas field. Technical work is confirming the suitability of this field for gas storage, and discussions have been held with a number of potential customers. This facility will allow users to store CSM ramp-up gas, and smooth gas supply.

With its recently announced drilling program, Mosaic Oil will continue to focus on unlocking shareholder value through an accelerated drilling campaign for 2009-2010 designed to move 2P and 3P gas into commercial production.

Click here to view the full Quarterly Report.

For further information, please contact:

Mosaic Oil:
Lan Nguyen – Managing Director on 02 9247 9324

Media:
Bill Kemmery – Fortbridge on (02) 9331 0655, mob 0400 122 449
bill.kemmery@fortbridge.com