Sydney, May 5, 2008 AEST (ABN Newswire) - Mosaic Oil NL (ASX:MOS)(PINK:MSAOF) is pleased to advise that the Waggamba-4H gas/condensate horizontal development well has been successfully completed for production.
On clean-up flow, the Waggamba-4H well has flowed at a stabilised rate of approximately 4 mmscfd (million standard cubic feet per day) of gas through a 30/64" choke with flowing pressure of 750 psi. After unloading most of the drilling and completion fluids, the flow stabilised in approximately one hour and remained stable for a further 90 minute flow period before the well was shut in for a pressure build-up as planned. The wellhead pressure built up from 750 psi to 2750 psi after 3 hours of shut-in.
Mosaic Oil's Managing Director Mr Lan Nguyen said "The initial results from the clean-up flow are very encouraging. This flow rate is consistent with the stabilised flow rate predicted for a horizontal Waggamba well by a reservoir modelling study undertaken by an independent reservoir engineering consulting company. We have successfully extended the lowest known gas structural depth of the field by approximately 6 metres, and we will provide information on the reserve potential in due course".
The Waggamba-4H well will be temporarily connected to the Waggamba gathering network within the next two weeks for extended production testing to ascertain the liquid yield and other reservoir properties as part of the on-going reservoir management program. CS Energy Limited 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.
Mosaic Oil has a 100% interest in PL 202.
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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