Sydney, June 3, 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%)
As at 0600 hrs on 3 June 2008, the Armstrong-1 exploration well is at a total depth of 2157 metres and running wireline logging operations.
Since the last report, the well was drilled in 7-7/8" hole to a revised total depth of 2157 metres. The primary target, the Showground Sandstone reservoir, lacked any significant hydrocarbon shows and was interpreted to be water wet. The secondary target, the Rewan Formation reservoirs, was absent at this location.
Gas shows of up to 520 units with weak oil shows associated with sandstones were encountered while drilling through the Permian section. The significance of these shows will be evaluated by wireline logging data.
Waggamba-5H (PL 202, Surat-Bowen Basin, Qld)
The wellsite construction is complete. Century Rig 7 will be moved to Waggamba-5H upon release from Armstrong-1.
Mosaic Oil has received a prepayment of A$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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