Mosaic Oil to Drill Churchie West-1 in October

Mosaic Oil has contracted Century Energy Services Rig 7 for the drilling of Churchie West-1 on PL 213 in Australia.

The drilling operation is expected to commence on or about 8th October 2006. It will take approximately 18 days on a trouble free basis, to drill the well to the planned total depth of 2178 meters. Churchie West-1 will be drilled with nitrogen in the primary gas/condensate target reservoir, the Permian Tinowon Sandstone, which is the productive reservoir in the adjacent Churchie and Myall Creek gas fields. The secondary target is the early Triassic Rewan Formation reservoirs.

Churchie West-1 is located approximately 2.5 km south-southwest of the Churchie-3 Tinowon Sandstone gas producing well and 1.3 km north-northwest of the Noorindoo-1 Tinowon Sandstone gas/condensate discovery well. A successful Churchie West-1 well will extend the reservoir fairway from the Churchie field into PL 213.

Participants in the PL 213 Churchie West Joint Venture are Mosaic Oil Group (83.333% and Operator) and Santos Group (16.667%).