Mosaic Oil has increased production in the Surat-Bowen Basin and has delivered another strong quarterly result, despite the lower prices currently being achieved for oil.

Mosaic Oil acquired Santos’ interests in several production licences with the associated pipeline licences, production facilities, gas sales contracts and exploration permits in the southern Surat-Bowen Basin.

Pre-FEED Technical and commercial work continued on the underground gas storage project in the Silver Springs-Renlim gas field. Technical work is confirming the suitability of this field for gas storage, and discussions have been held with a number of potential customers. This facility will allow users to store CSM ramp-up gas, and smooth gas supply.

With its recently announced drilling program, Mosaic Oil will continue to focus on unlocking shareholder value through an accelerated drilling campaign for 2009-2010 designed to move 2P and 3P gas into commercial production.

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