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Mosaic Oil (ASX:MOS) Weekly Operations Update - Surat-Bowen Basin, Qld
Sydney, Apr 1, 2008 (ABN Newswire) - Mosaic Oil (ASX: MOS)(PNK: MSAOF) Provide the following weekly update for the Surat-Bowen Basin operations.
Waggamba-4H (PL 202 - MOS; 50% gas, 65% free oil/condensate)
The Waggamba-4H gas and condensate development well commenced drilling at 1000 hrs (EST) on 1 April 2008 and is currently drilling ahead in 12-1/4" surface hole.
It is expected, on trouble free basis, to take approximately 32 days to drill and evaluate the well, which has a planned total depth of 3336 metres Measured Depth (2646 metres True Vertical Depth).
The Waggamba-4H well is targeting mean recoverable reserves of 2.5 BCF of raw gas (approximately 3.3 PJ of sales gas and 0.275 million barrels of associated condensate). The P10 recoverable reserves are estimated at 4.5 BCF of raw gas (approximately 5.94 PJ of sales gas and 0.495 million barrels of associated condensate).
The Waggamba-4H surface location is located approximately 150 metres from the Waggamba Plant tie-in point.
CS Energy has pre-paid $3.5 million for funding the Waggamba-4H drilling, completion and tie-in costs, and will be entitled to 50% of gas production and 35% of free oil and condensate production from Waggamba-4H. Mosaic Oil will retain 50% of gas production and 65% of free oil and condensate production.
Fairymount-9 (PL 46 - MOS 100%)
The surface flowline to connect the well to the central oil storage tank has been completed. Surface pumping equipment is on location in readiness for installation.
The downhole rod-insert pumping string is expected to be installed by the end of this week. The well is expected to be on pump for production test of the sub-unit "B Sand" within two weeks.
Further information on production rates will be provided to the market when available.
About MOSAIC OIL NL
Mosaic Oil N.L. (ASX: MOS) is a successful junior Australian explorer and producer of oil and gas. The Company's principal producing assets are based in the highly prospective proven producing Surat and Bowen basins of southeast Queensland. Mosaic's focus on Queensland now involves accelerated evaluation of the Company's extensive exploration and production acreage, ongoing development of new commercial petroleum plays and discoveries similar to the basin-centred hydrocarbon plays in the Canadian Deep Basin of Alberta and American Rocky Mountain area of Wyoming, and greater use of the Company's own extensive production infrastructure.
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