Mr David Herlihy has been appointed Chairman of Mosaic Oil NL. Mr Herlihy, who has extensive corporate and government board experience, was appointed to the Board of Mosaic in February 2006 and head of the Mosaic Audit Committee.

Mr Herlihy said Mosaic will accelerate development of its extensive Surat Bowen leases; and to improve commercial and technical efficiencies by initiating a comprehensive expenditure and operations review to increase returns.

The new chairman also nominated Mosaic’s Kimu gas field (Mos 28. 6%) which holds in excess of 1 trillion cubic feet of possible recoverable gas resource as a renewed priority for the Company. Growing international interest and the increasing need for liquefied natural gas (LNG) production from the developing Asian power houses is raising commercial interest in PNG gas.

“Mosaic intends to accelerate even more its commercialisation of valuable assets in hand – and actively explore new ventures for diversified growth opportunities,” Mr Herlihy said.

He said a pleasing step in this plan was the success of Mosaic’s first farm-out since 2002 - Downlands 4 - flowing commercial gas this morning. The previous Chairman of Mosaic Oil NL, Dr Don Stammer, resigned from the Company today following a difference of view with the Board.