Mosaic Oil NL (ASX: MOS) announced today that proposed cleanout of the existing horizontal wellbore in Waggamba-5H (PL 202, Surat-Bowen Basin, Qld, MOS-65% Oil/ Condensate; Gas –50%) was completed without encountering any apparent blockage.

It was decided to sidetrack the well deeper into the Tinowon formation to determine if better quality sands could be located. Two sidetracks were completed and interpreted to have intersected fair to good inferred porosity Tinowon sands. Drilling has now ceased, and the well is being completed for a clean-up flow by the weekend followed by an extended production test.

Taylor-22 (PL 16, Surat-Bowen Basin, Qld, MOS-100%):

MB Century Rig #7 is being moved to the Taylor-22 drilling site and drilling will commence early next week. Taylor-22 will be drilled as a gas development well in PL 16 (Taylor Field), located on the western flank of the Surat-Bowen Basin in SE Queensland. The well is designed to target gas reserves in the Showgrounds Sandstone reservoir to the north and up-dip of the existing Taylor-16 producer. Planned well depth is 2034m. It is estimated to take approximately 10 days.

Churchie-11 (PL 192, Surat-Bowen Basin, Qld, MOS-100%):

Initial production tests on Churchie-11 show a stabilised flow rate of 0.5 MMcfd of gas and approximately 15 bbls/d of condensate. The well is currently shut in for a pressure build up test.

For further information contact:

Mosaic Oil: Tim Petersen – Acting Chief Executive Officer on 02 9247 9324
Media: Bill Kemmery – Fortbridge on (02) 9331 0655, mob 0400 122 449, email bill.kemmery@fortbridge.com