Mosaic Oil’s results and outlook for first half FY10 March 8, 2010

Australian oil and gas producer Mosaic Oil NL (ASX: MOS) today released its Financial Report for the first half FY 2010.

Highlights:

• 11.3% increase in total production to 255,329 BOE for the half
• Strong balance sheet with cash of $21.4m and no debt
• Focused efforts on development of Churchie and Waggamba fields with fracture stimulation operation planned for Churchie-1 well in March 2010
• 1H FY 2010 year net loss after tax of $4.358m after exploration write downs of $4.696m
• Production is forecast to exceed 500,000 BOE for FY2010

The second quarter financial performance was a significant improvement on the first quarter and overall the Company is in a strong financial position with over $21 million in cash. Production was slightly higher than the previous two half year periods despite the customer related interruption to production in the September quarter. During the rest of the financial year, the company plans to focus on development drilling in the Surat- Bowen Basin to increase revenue and profits in the 2H FY 2010 and beyond.

Mosaic Oil CEO Mr Alex Parks said that “The Company had delivered higher overall production and sales of natural gas in the half but lower oil/condensate production/revenue compared to the two previous half years. We believe we can continue to increase our production in the current year with further increases in FY2011.”

Click here to view the Media Release.

To view the full Financial Report, click here.

For further information, please contact:

Mosaic Oil: Alex Parks – Chief Executive Officer (02) 9247 9324
Media: Bill Kemmery – Fortbridge on (02) 9331 0655, mob +61 0400 122 449, bill.kemmery@fortbridge.com