ARC said this morning initial wireline log interpretation had indicated the well contains a potentially significant gas column in the primary objective Dongara Sandstone section.

“Hole conditions have however prevented the acquisition of wireline pressure data required to definitively evaluate the extent and quality of the net gas pay.”

“These results will be obtained over the next couple of days if hole conditions permit. If it is not possible to obtain wireline pressure data, the well will be cased and production testing will be undertaken as soon as possible to obtain reserves, deliverability and gas composition data.”

The partners are ARC Energy and Origin Energy (50% each)

Mosaic Oil’s statement said its 100%-owned Waggamba-3 well showed the first productive gas from the Showground Sandstone section, which is the main reservoir of gas and oil in the Surat Basin gas fields over the last 20 years.

“Gas shows of up to 315 units were recorded while drilling through the Showgrounds section. This is the first well indicating economic potential in the Showgrounds sandstone in the Waggamba area,” said the statement

“Electric logs indicate potential gas bearing sands over the interval from 2,345.5 metres to 2,350.0 metres.”

Additionally, results indicated 5 metres of net gas bearing sands in the Lower Rewan Formation from 2,436 metres to 2,448 metres. These gas-bearing sands were also present in Waggamba 1 and Waggamba 2.

Mosaic is yet to enter its primary target area (Tinowon Sandstone) which will be drilled under-balanced with nitrogen in late April/early May.