Mosaic Spuds Brynog-1

Mosaic Oil NL said that the Brynog-1 well, which is operates, spudded at 7 a.m. EST on Monday. It will take approximately 18 days to drill to the planned total depth of 2240 meters on a trouble-free basis.

Brynog-1 is the last well of the Ausam Farmin Stage 1 program. The well is located approximately 25 km south of Surat Town and 1 km east of the Silver Springs to Wallumbilla gas pipeline.

Ausam will fund the first $1.5 million of the Brynog-1 well costs and then contribute pro-rated interest for any costs above $1.5 million.

The well will be drilled with nitrogen and target the Permian Tinowon Sandstone gas and/or oil reservoir in a stratigraphic trap located immediately south-southwest of the Churchie-Noorindoo area.

The Brynog Prospect has the potential to contain recoverable reserves of up to 15 BCF of gas or 2 million barrels of oil (in the P10 case).

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