Sydney, July 1, 2008 AEST (ABN Newswire) - Mosaic Oil NL (ASX:MOS)(PINK:MSAOF) advises that as at 0600 hrs (EST) on 1 July 2008 the Waggamba-5H gas and condensate development well was at 3086 metres MD (Measured Depth) (2622.9 metres True Vertical Depth or 2350.2 metres sub-sea) and is currently drilling ahead in 6-1/8" horizontal hole. The forward plan is to continue drilling the 6-1/8" horizontal section to the planned total depth
of approximately 3400 metres.
Since the last report, the 8-1/2" build section was successfully drilled to 2912 metres with an extrapolated inclination of 84.4 degrees. Two metres of True Vertical Depth (or 23 metres of Measured Depth) of the main Tinowon Sandstone reservoir were drilled. The 7" immediate casing string was run and cemented at 2907 metres.
In the main reservoir target, gas shows while drilling of up to 5000 units over background 200-300 units have been observed. The oil shows contain 5-60% dull to moderately bright green yellow even to spotted - pinpoint fluorescence with very slow, dull to moderately bright diffuse, milky blooming white cut, moderately bright milky white to yellow white crush cut and faint white to yellow residual UV ring. The gas and oil shows are consistent with the shows in Waggamba-4H.
On a trouble free basis, it is expected to take a further 7 days to drill, evaluate and complete the well, which has a planned total depth of 3400 metres MD (2638 metres TVD or 2365 metres SS).
The Waggamba-5H 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-5H surface location is located approximately 500 metres from the Waggamba Plant tie-in point and approximately 350 metres from the Waggamba-4H surface location.
CS Energy has pre-paid $3.5 million for funding the Waggamba-5H drilling, completion and tie-in costs, and will be entitled to 50% of gas production and 35% of free oil/condensate production from Waggamba-5H. Mosaic Oil will retain 50% of gas and 65% of free oil/condensate production.
Contact
Mosaic Oil:
Lan Nguyen
Managing Director
Tel: +61-2-9247-9324
Media:
Bill Kemmery
Fortbridge
Tel: +61-2-9331-0655
Mob: +61-400-122-449
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