Mosaic Oil has commenced exploration at its new Cooper-Eromanga permit ATP 1056P (Mosaic 40%), 'the Taipan Block', located on the prospective southeast Cooper oil fairway in southwest Queensland.

Through its wholly-owned subsidiary Continental Oil Pty Ltd as Operator, Mosaic has entered a contract with Geokinetics (Australasia) Pty Ltd to acquire 600 square kilometres of 3D seismic data in the new Cooper-Eromanga Permit ATP 1056P 'the Taipan Block'.

This contract enables the start of the detailed exploration plan agreed by Mosaic (40%) and its fellow joint venturers, and follows the grant of the Permit with effect from 1 June 2010.

Line preparation and cultural heritage clearance is anticipated to begin in the Permit later this month. Seismic data recording will then be able to occur from September to November 2010.

It is anticipated that the seismic data will be processed and ready for interpretation by the first quarter of CY2011. Interpretation of the 3D seismic is expected to take two months with the objective of identifying a series of drilling prospects. A suitable drilling program in the Taipan Block could then commence by June 2011.

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