+++++++++++++++++++++++++ Mosaic Oil and its JV Partner, Santos, have struck gas with the re- drilling of the Churchie 1A site in south east Queensland - with gas flowing at 5.6 million cubic ft/day through a 1 inch choke with a surface flowing pressure of 200 psi over the nitrogen drilled interval 2082 to 2134 metres.
Using Nitrogen drilling techniques, Churchie 1A flowed up to 400 percent more than its namesake Churchie 1 - drilled just 200 metres away with traditional mud drilling methods (a flow of 1.3 million cubic ft/day in 2001)
Construction of the Churchie pipeline will begin in January with gas sales from Churchie 3 flowing in the first quarter of 2003. Churchie 1A will be production tested and logged in the New Year and also be connected to the new pipeline.
Interests in Pl 192 (Churchie Production Licence) Mosaic 49% and Operator Santos Group 51%.
Dr Howard Brady CEO Mosaic Oil
For Information rig the above or Steve McDowell, Mosaic COMPANY SECRETARY. Phone 02-9247-9324.
MOSAIC PRESS RELEASE
"The success of Churchie 1A proves two things", says jubilant Dr Howard Brady, Mosaic's Chief Executive Officer.
"It proves Mosaic's belief that there is a considerable gas field within the Permian leases Mosaic holds in the Surat Basin, and two: that Nitrogen drilling is making a successfully huge difference to drilling in these Permian Sandstones structures."
The Churchie Production Licence covers 90 square kilometers and Mosaic holds additional Permian leases.
The drilling success, just four days after the Queensland Government approved construction of a pipeline from the Churchie field into the Queensland gas grid - and the growing doubt over the Papua New Guinea gas pipeline into Queensland - is timely for the operator Mosaic (49%) and Santos (51%) finds.
"Mosaic is proving itself as Australia's developing oil and gas producer - having moved over the past two years from a small explorer to now having the ability to find, develop, and deliver reliable supplies to major gas users in the Qld market," says Dr Brady.
For information /interviews:
Don Willesee: Central Communications Public Affairs 02 9922 2244 / 0417 284 564
Or Dr Howard Brady - CEO Mosaic Oil (Operator) 02-9247-9324
MOS Price at posting:
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