Mosaic Says Churchie 2P Gas Reserves up 65%

An independent audit of the Churchie Gas Field has indicated a sixty five percent (65%) increase in 2P (proven & probable) reserves.

The Audit, undertaken by Focal Petroleum Engineering of Perth, was carried out on the Permian gas reserves in the Churchie gas field (PL192) in south east Queensland's Surat Basin, Australia.

In announcing the results as operator of the field, Mosaic revealed that the audit indicates 2P recoverable gas reserves in the Permian Tinowon Sandstone as 54.9 Billion Cubic Feet.

This is a rise to 56.6 PJ - up from 34PJ as announced in 2003 (+65%).

The Permian Tinowon Formation 3P (proven, probable & possible) recoverable gas reserves are estimated to be 118 BCF and the Permian Wallabella 3P recoverable gas reserves at 11BCF.

This is a total of 129 BCF (132.8 PJ) of 3P gas reserves.

Mosaic also advises the market that additional to the audit of the Permian gas resources, electric logs indicate that the Rewan Formation (Lower Triassic) in all wells so far drilled in the Churchie field could have economic potential.

The resource potential of recoverable gas in the Rewan Formation is 5.4 BCF (Low Case), 25 BCF (Medium case) and 102 BCF (High case).

The interests in the permit are Santos Ltd (51%) and Mosaic (49% and Operator)