Mosaic Oil has released today its Quarterly Activities Report for September 2008.

Mosaic Oil remains focused on implementing an accelerated drilling campaign for the 2008-2010 period at the Surat-Bowen Basin, Queensland, Australia.

The Company successfully completed 2008 drilling program with 9 wells drilled. At present, 4 wells have been completed and connected for production, one well (Waggamba-5H) completed for testing and one exploration well (Freneau-1) cased and suspended for future completion and testing.

KEY POINTS IN THIS REPORT:

• September 2008 Quarter delivers:
• Overall production increase of 7%
• Drilling success at Taylor-19 and Freneau-1
• Cash receipts of $8.4 million for the Quarter
• An average oil price for the Quarter of US$123.40/bbl or A$154.82/bbl.

• Cash at the end of the Quarter of $19.3 million.

• Surat-Bowen Basin, QLD:

• Multi-well 2008 drilling program completed with 9 wells drilled
• Taylor-19 was completed as a gas/condensate producer
• Freneau-1 exploration well was cased and suspended for future completion and testing after encountering a total of 9.1m log interpreted net gas pay within Permian sandstone reservoirs

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