Mosaic Oil Says Churchie 5 Appraisal Well Non-Commercial

The Churchie 5 appraisal well in southeast Queensland in Production License 192 has reached total depth of 2264.5 meters.

Gas was encountered in the Permian Sands and has been flowing to the surface at a rate not considered commercial at this time. No water was encountered.

The well will be logged to determine the gas bearing intervals and a plug will be set so that the well may be sidetracked in the future.

Dr Howard Brady Mosaic's CEO commented: "The reservoir is gas charged and approximately 40 meters down-dip and over 2 kilometers away from our lowest known gas flows in the Churchie field which shows potential for additional reserves. Further seismic coverage is needed on the eastern side to fully develop this area".

Santos is the operator with a 51% and Mosaic holds the remaining 49%.