Mosaic Makes Waggamba Exploration a Priority

Mosaic Oil is stepping up its priority to lift oil revenues with drilling planned for September in its fully held Waggamba complex in southeast Queensland. A Production Licence was filed last week with the Queensland Department of Natural Resources and Mines to cover the 90-square kilometer Waggamba lease - a similar area in size to the Churchie Production Licence awarded last year to Mosaic/Santos.

"High oil ratios of up to 100 barrels of oil per million cubic feet of gas make the Waggamba area very attractive to us. We are also aware that Waggamba itself is part of a much larger system, "Mosaic CEO, Dr Howard Brady said.

Mosaic's drilling schedule resumes after an enforced delay following a serious fire on the Century 1 rig while it was drilling for another company.

"While our May/June drilling program was delayed we are eager for the September drill and at that time we intend to target at least one other oil prospect in addition to Waggamba."

Mosaic is planning a seismic survey for mid-year with field scouting already begun. This will high grade leads in the Waggamba area and in ATP709 just to the north of Waggamba (which is on trend with the Churchie gas field).