Mosaic Conducts Waggamba Flow Test

A 20 hour cleanup flow of Waggamba-1H was commenced at 1600 hrs on 18th August. The cleanup flow served to unload the drilling/completion fluid in the wellbore prior to the main flow test.

During the first 16 hours of cleanup, the well flowed drilling and completion fluid with gas. In the last four hours prior to shut-in, the flow was diverted through the test separator and tank. During this period, the well flowed gas at approximately 0.32 MMSCFD and oil at 20 BPD through a 3/8" choke. In addition, 2.1 barrels of drilling/completion fluid was produced to the tank during this final flow period.

The well was shut in at 1205 hrs on 19th August for pressure build-up prior to an extended production test with down hole pressure gauges to collect data for reservoir and productivity studies. The extended production test will be undertaken in the next few days.

Shut in well head pressure at Waggamba-2, which is approximately 200 meters east of Waggamba-1H, dropped from 2900 psi to 2498 psi over a 11 hour period during the cleanup flow from Waggamba -1H suggesting that the two wells are in direct pressure communication. PL 119 Downlands-4 (Mosaic Operator and 83.333% reducing to 60.9164% after Ausam's Stage 1 Farmin).

The Australian Drilling Services (ADS) Rig 6 is expected to be mobilized to the Mosaic operated Downlands-4 wellsite on about 27th August 2006. Downlands-4 is the first well of Ausam's PL 119 and ATP 471P Bainbilla Block Farmin Stage 1 program. Ausam will fund the first $1.5 million of the Downlands-4 well costs and then contribute prorated interest for any costs above $1.5 million.


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