Mosaic to Participate in Hurricane 1 Well Offshore Australia

Mosaic Oil will participate in the Hurricane 1 well to be drilled in Western Australia's North West shelf WA-208-P in early 2005.

The Hurricane 1 well will be spudded in the oil-prospective Carnarvon Basin subject to approval by the Western Australian Government.

The Hurricane prospect lies approximately 8 kilometers from the Legendre oil production facility in the adjacent WA1P permit.

The prospect is estimated to hold 75 million barrels of oil in-place. The reservoir target for the well is the Eliassen Formation within the upper channel sand of a deepwater fan.

This is the first external exploration well Mosaic has entered since finding success in Queensland's Surat-Bowen Basin.

Santos Offshore Pty Ltd will be operating the A$6.25 million (estimated) well on behalf of the WA-208-P joint venture.

Mosaic's current farm out of 1.46% of its 7.46% interest in the permit to Santos Ltd will lower Mosaic's up-front costs in the venture to less than 5%.

Following the farm out by Mosaic to Santos, interests in WA-208-P will be: Santos Offshore Pty Ltd (Operator) with 29.85%; Santos Ltd with 11.46%; Woodside Energy Ltd with 34.03%; ENI Australia with18.66%; and Mosaic Oil N.L. with 6.00%