Mosaic: Waggamba-1H Reaches Total Depth

Mosaic Oil said that its Waggamba-1H well in southeast Queensland, Australia reached total depth of 2,729 m measured depth at the base of the Permian Tinowon Sandstone.

At 7 a.m. local time on August 10, the rig was pulling drill pipes out of the hole. A steady increase of the gas flare was observed while the well was being drilled near-horizontally through the reservoir section.

The forward plan is to complete the well with production tubing string prior to carrying out a production test to establish the commercial significance of this well. Results of the production test are expected to be available by the end of next week.

The Waggamba-1H well is in PL 202, and Mosaic is 100% owner and operator.

Upon the completion of Waggamba-1H well, Ensign Rig 5 will be used for working over other Mosaic-operated wells in the Silver Springs-Waggamba area prior to drilling Fairymount-7H oil development well in PL 46 (Mosaic 100% and operator). Fairymount-7H drilling is scheduled to commence in the last week of August 2006.

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