Mosaic Oil releases Quarterly Report November 2, 2009

Mosaic Oil (ASX: MOS) announces that the September quarter has seen the start of a new chapter for Mosaic, with a new CEO appointed, new wells on stream and an SPP in progress.

CORPORATE HIGHLIGHTS

• Alexander Parks appointed as CEO in August.
• Dr John Armstrong appointed to the Mosaic board.
• Successfully raised $10.9 million by way of a placement of 94.74 million shares at 11.5 cents.
• Mosaic also announced a Share Purchase Plan (SPP) for existing Mosaic shareholders expected to be at the same price. The closing date of The SPP is 9 November 2009.
• Entered into a Joint Venture with Beach and IOR for the crude oil tank 1020 at Lytton, Queensland.
• Settled the acquisition of Santos’s 51% interest in the Churchie gas field and other production and exploration permits in the Surat Basin.
• Cash receipts of $6.583 million for the quarter.

OPERATIONAL HIGHLIGHTS

• Churchie-11, Taylor-20, Taylor-22 and Waggamba-5H all came online in the September quarter. Despite this, overall production was 7% lower than the previous quarter due to a temporary customer shutdown.
• Mosaic forecasts significantly higher gas and condensate production in the December quarter.
• Completed the 2D seismic interpretation of ATP 608P Stratton Block farm-in.
• Mosaic continued discussions with potential customers for the underground gas storage project (SSUGS).
• Commenced acquisition of a 2D seismic program in PEP 51151, Taranaki Basin, New Zealand.

Click here to view the full announcement.

For further information, please contact:

Alex Parks
CEO
Mosaic Oil
+612 9247 9324

Media:
Bill Kemmery
Fortbridge
Mob: +61 400 122 449
Email: bill.kemmery@fortbridge.com