Mosaic completes and perforates Taylor wells July 29, 2009

Mosaic Oil (ASX: MOS) released its Weekly Operations Update today.

Waggamba 5H (PL 202, Surat-Bowen Basin, Qld, MOS-65% Oil/ Condensate; Gas -50%)

The Company advises that the flow and pressure build-up test on this well is expected to commence on Thursday.

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

Taylor 22 has been completed and was perforated on 25 July. After a clean up flow of 2 hours, a stabilised flowrate of 7-8 MMSCFD was recorded using a 32/64th inch choke with 9040 kPag (1311 psig) flowing wellhead pressure. The well has been shut-in pending connection to the Taylor Satellite Plant within the next three weeks.

Taylor 20 (PL 16, Surat-Bowen Basin, Qld, MOS-100%)

Taylor 20 has also been completed and was perforated on 26 July. A clean up flow of 2 hours was completed, and an un-stabilised rate similar to Taylor 22 was observed with 9710 kPag (1408 psig) flowing wellhead pressure. The choke setting was 50/64 th inch however there was evidence of some blockage in the choke preventing a reliable calculation of the flowrate. The well has also been shut-in waiting for connection to a nearby manifold in the next three weeks.

The flow rates seen from the Taylor wells are significant for the Silver Springs area. The two wells will initially be placed on production at rates of 1-2 MMSCFD per well and their performance monitored. At these gas rates, this would increase Mosaic’s overall gas rate by 25-50%.

For further information, please 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