🕐29.04.09 - 04:56 Uhr

Mosaic Oil [ASX: MOS] - Full ownership of Churchie Field caps off another good quarter



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Mosaic Oil [ASX: MOS] - Full ownership of Churchie Field caps off another good quarter

Mosaic Oil NL (ASX: MOS) has increased production in the Surat-Bowen Basin and has delivered another strong quarterly result, despite the lower prices currently being achieved for oil.

Mosaic Oil acquired Santos� interests in several production licences with the associated pipeline licences, production facilities, gas sales contracts and exploration permits in the southern Surat-Bowen Basin.

Pre-FEED Technical and commercial work continued on the underground gas storage project in the Silver Springs-Renlim gas field.

Technical work is confirming the suitability of this field for gas storage, and discussions have been held with a number of potential customers.

This facility will allow users to store CSM ramp-up gas, and smooth gas supply.



With its recently announced drilling program, Mosaic Oil will continue to focus on unlocking shareholder value through an accelerated drilling campaign for 2009-2010 designed to move 2P and 3P gas into commercial production.

Highlights of the March 2009 quarter include:

� Cash receipts of $6.7 million (excluding revenue from Santos� Churchie field interest acquisition) which is the second highest quarterly receipts for the Company

� Mosaic realised an average oil price for the Quarter of US$48.81 per barrel or A$74.59 (Dec 08 Quarter US$60.69/bbl or A$89.19/bbl).

� Cash at the end of the Quarter was $15.08 million.

� Overall production was 14% higher (on a BOE basis) than the previous quarter.

� Gas production increased by 17% due to the acquisition of a 51% interest of the Churchie field.

� Mosaic Oil acquired Santos� interests in several assets in the southern Surat-Bowen Basin.

� Mosaic Oil continues to evaluate other domestic and international exploration and production opportunities.

� Pre-FEED Technical and commercial work continued on the underground gas storage project in the Silver Springs-Renlim gas field.

� New drill campaign launched at end of quarter.


Please refer to the Quarterly Report attached.


For further information contact:

Mosaic Oil:
Lan Nguyen � Managing Director on 02 9247 9324

Media:
Bill Kemmery � Fortbridge on (02) 9331 0655, mob 0400 122 449


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