Sydney, May 16, 2008 (ABN Newswire) - Mosaic Oil NL (ASX: MOS)(PINK: MSAOF) is pleased to advise that the Taylor-18 gas/condensate development well reached a total depth of 2040 m on 15 May 2008 and that the wireline pressure survey has confirmed the presence of the gas/condensate column.

Wireline logs and a pressure survey have been run. The wireline log interpretation has indicated that the well encountered approximately 2.5 metres of net gas/condensate pay over an interval from 1994 metres to 1999 metres in the upper part of the Showgrounds Sandstone Formation.

The results have confirmed the presence of interpreted attic gas/condensate reserves located updip from the Taylor-4 and Taylor-12A oil and gas producers.

The Taylor-18 well will be cased and suspended with Century Rig 7. The well will be completed for production within 2 weeks by a workover rig currently operated by Mosaic Oil in the area.

Taylor-18 is expected to be connected to the Taylor gathering network by as early as the end of June 2008.

Mosaic Oil's Managing Director Mr Lan Nguyen said "It is always pleasing to see another successful well. The success confirms the Company strategic intent of moving 3P and 2P hydrocarbon reserves into proven producing reserves within our Surat-Bowen Basin producing assets".

Mosaic Oil has a 100% interest in PL 49.

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