Mosaic Oil Finds Gas at Downloads-4

The Downlands-4 well in Australia was completed and perforated over the Tinowon Sandstone reservoir interval 1835.8 – 1840.8 meters. On cleanup flow, the well flowed gas at stabilized rate of approximately 1.8 mmscfd through a 1/2" choke with flowing pressure of 276 psi.

Lan Nguyen, Mosaic's CEO stated that "This gas flow rate is well above the commercial threshold and engineering design is currently underway to connect the Downlands-4 gas discovery to nearby production infrastructure. This is a good result from the first well in our farm-out program".

Downlands-4, which will be put on extended production test, is located 1.6 km to the NNE of the Downlands-2 gas production well and 1.1 km west of the Downlands East-1 gas well.

Downlands-4 is the first well of Ausam's three well PL 119 and ATP 471P Bainbilla Block Farmin Stage 1 program. Ausam will fund the first $1.5 million of the Downlands-4 well costs and then contribute prorated interest for any costs above $1.5 million.