Mosaic expects successful drilling campaign to boost future production July 31, 2009

Mosaic Oil NL (ASX: MOS) has released today its Quarterly Report for June 2009, announcing 100% success in its drilling program. Whilst production was constrained by a customer shutdown in June, the company continued to post strong cash receipts.

KEY POINTS:

• Churchie-11, Taylor-20 and Taylor-22 all drilled this quarter and completed as successful gas-condensate producers
• Workover of the Waggamba-5H horizontal well establishes sustained gas flow
• Cash receipts of $3.58 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 $US59.22 per barrel or AUD$74.07(Mar Qtr AUD$74.59)
• Cash at the end of the Quarter was $13.7 million
• Overall production was 18% lower (on a BOE basis) than the previous quarter due to both a maintenance shutdown by a gas customer and also some oil well downtime
• Pre-FEED Technical and commercial work continued on the underground gas storage project in the Silver Springs-Renlim gas field
• Mosaic continues to evaluate other domestic and international exploration and production opportunities

Click here to view the full announcement.

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