Sydney, Apr 15, 2008 (ABN Newswire) - Mosaic Oil NL (ASX: MOS)(PNK: MSAOF) advises that as at 0600 hrs (EST) on 15 April 2008 the Waggamba-4H gas and condensate development well is at 2635 metres and is currently running back in hole after changing out the bit and the bottomhole drilling assembly. The forward plan is to continue drilling the 8-1/2" build section to the 7" casing point at approximately 2900 metres.

Waggamba-4H (PL 202 - MOS; 50% gas, 65% free oil/condensate)

It is expected, on a 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.

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