Mosaic and Santos Get Approval for Churchie Field

The Queensland Government has approved a 23 year Production Licence for the development and sale of gas from the Mosaic/Santos Churchie gas field. Mosaic Oil and Santos Limited welcomes the award of the Production Licence covering an area of 92 square kilometers over the whole Churchie and Noorindoo gas complex.

Still before the Department of Natural Resources and Mines is a Pipeline Licence Application to build a 6-kilometer pipeline to connect the Churchie gas field with the Queensland gas grid. Mosaic Oil has already made all the necessary submissions for that pipeline and they have been completed satisfactorily to the company's knowledge.

Once received it is believed that it will take less than 5 months before Mosaic and Santos will be delivering gas from the field. Mosaic Oil NL (MOS) has already stated that Churchie 3 will double its current gas sales.

The Mosaic-Santos Joint Venture is examining plans and engineering for the construction of a gas pipeline to a central gathering point within the Churchie production licence. Any additional successful development wells will link at this gathering point.

Mosaic-Santos JV is planning to re-drill Churchie #1 well with the now proven nitrogen drilling unit as soon as possible.

Interests in the field are Santos Group 51% and Mosaic Oil 49%.