Sydney, Mar 20, 2008 (ABN Newswire) - Mosaic Oil NL (ASX: MOS)(PNK: MSAOF) advises that the Fairymount-9 oil development well has reached the total depth of 2087 m KB on 19 March 2008. The primary reservoir target, the Showgrounds Sandstone, was intersected on depth as predicted with oil and gas shows similar to offset wells.

Wireline logs have also been run. The wireline log interpretation has indicated that the well encountered 5.4 metres of net oil pay over the gross interval of 13.5 metres from 2036.5 to 2050.0 metres KB.

Importantly, the well encountered the sub-unit "B Sand" for the first time in the northern part of the field. This unit is one of the oil productive sub-units in the southern part of the field and was previously encountered in Fairymount-3, Fairymount-5 and Fairymount-8 oil producer wells (see attached map).

The Fairymount-9 well will be cased and completed with Century Rig 7 and the rod-insert pumping string will be run at a later date in April-May 2008.

Fairymount-9 is located approximately 300 metres north-northeast of the Fairymount-4 well which has produced to date over 205,000 bbls of oil.

Mosaic Oil's Managing Director Mr Lan Nguyen said "It is pleasing to see Mosaic Oil commence our largest ever operated drilling program in the Surat-Bowen Basin with a success".

Mosaic Oil has a 100% interest in PL 46.