Mosaic to commence 2008 drilling campaign

Mosaic Oil NL mobilised the Century Resources Rig 7 to the first well site, Fairymount-9 oil development well, with drilling operations expected to commence on around the 10th March.

The mobilisation represents the commencement of the Mosaic Oil 2008 drilling campaign, and the implementation of Mosaic Oil’s accelerated growth strategy following the successful capital raising by the Company at the end of 2007.

The drilling contract with Century Resources for their Rig 7 has provided Mosaic Oil the options to drill up to 15 wells in the Surat-Bowen Basin, Queensland.

The drilling campaign in the Surat-Bowen Basin in 2008 will primarily focus on relatively low risk liquids rich gas and oil development wells for increasing production output from the discovered probable reserves and also exploration and appraisal wells for increasing proven and probable reserves. There is a balanced mix of oil and gas/condensate targets in the Triassic Rewan and Showgrounds reservoirs and also in the Permian Tinowon reservoirs.