Mosaic expects to drill Taylor-22 tomorrow June 24, 2009

Mosaic Oil NL (ASX: MOS) continues preparations at Waggamba 5H (PL 202, Surat-Bowen Basin, Qld, MOS-65% Oil/ Condensate; Gas – 50%) for the clean-up flow and the flow and build-up test. Minor issues have delayed the completion of operations.

MB Century Rig #7 has been mobilised to the Taylor 22 site (PL 16, Surat-Bowen Basin, Qld, MOS-100%) and is expected to commence drilling tomorrow. 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.

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