Mosaic Oil says that Freneau-1 (ATP 709P – MOS 100%) reached a total depth of 2438 metres on 22nd September 2008. Current operation is attempting to free stuck drill pipes at 1915 metres prior to carrying out wireline logging operations to evaluate hydrocarbon shows in the reservoir targets within the Rewan Formation and the Tinowon Formation.

Fair to good gas shows with various oil shows (fluorescence) associated with sandstones were observed, and the significance of these hydrocarbon shows will be evaluated by the wireline logging program expected to be completed by the end of the week.

The Freneau Prospect Tinowon Sandstone primary target has the potential to contain an estimated recoverable gas resource of 28.9 BCF in the Mean case, and up to 71.2 BCF in the P10 case.

The 2008 drilling program will be concluded at the end of the Freneau-1 drilling operations.

In summary, the 2008 Mosaic Oil operated drilling program has drilled 9 wells with 5 successful wells and 1 well (Freneau-1) currently under evaluation. Among 5 successful wells, 3 wells are on production (Fairymount-9, Waggamba-4H & Taylor-18), 1 well (Taylor-19) is due to be connected for production and 1 well (Waggamba-5H) is due to be tested.

The MB Century Rig 7 will be released and demobilised to Roma. Mosaic Oil expects to commence the 2009 drilling program by the end of the March 2009 Quarter subject to the weather conditions and with an overall target of 10 wells for 2009 Calendar Year.

Tags: Mosaic Oil