Sydney, May 27, 2008 AEST (ABN Newswire) - Mosaic Oil (ASX: MOS)(PINK: MSAOF) Announce the Weekly Operations Update - Surat-Bowen Basin, Qld.
Armstrong-1 (ATP 709P - MOS: 100%)
Armstrong-1 spudded at 0900 hrs on 26 May 2008. The 12-1/4" surface hole was drilled to 248 metres and the 9-5/8" surface casing string was set and cemented at 244.8 metres.
As at 0600 hrs on 27 May 2008, the Armstrong-1 exploration well was at a depth of 248 metres and waiting on cement to set prior to rigging up the Blow-Out Preventer for drilling the 7-7/8" hole. It is expected, on trouble free basis, to take approximately 14 days to drill and evaluate the well, which has a planned total depth of 2360 metres.
Armstrong-1 is an oil exploration well with the Showground Sandstone as the primary target and the Rewan Formation reservoirs as the secondary target. The Armstrong Prospect is located approximately 4 km east of the Taylor Showground Sandstone Oil and Gas producing field.
The Armstrong Prospect Showground Sandstone primary target has the potential to contain an estimated mean recoverable resources of 0.47 million barrels of oil and up to 1.1 million barrels of recoverable oil in P10 case. The prospect is assessed to have a 40% chance of success which is consistent with an overall commercial success rate of 37% for the Showground Sandstone/Rewan Formation wells in the immediate area.
There are several additional undrilled prospects and leads on trend with the Armstrong Prospect, drilling of which will be determined by the results of Armstrong-1. The three most mature of these prospects have a combined total potential mean recoverable resources of 0.7 million barrels of oil and up to 1.6 million barrels of recoverable oil in P10 case.
Waggamba-5H (PL 202, Surat-Bowen Basin, Qld)
The wellsite is being prepared and is nearly complete.
Mosaic Oil has received a prepayment of $3.5 million from CS Energy for the funding of the Waggamba-5H drilling, completion and tie-in costs.
CS Energy will be entitled to 50% of gas production and 35% of free oil and condensate production from Waggamba-5H. Mosaic Oil will retain 50% of gas production and 65% of free oil and 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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