Preliminary reports from its Tinker 4 well indicate that oil is flowing at over 100 barrels a day. Drilling stopped to improve hole conditions and conduct repairs at surface but should resume shortly.

The oil strike of Tinker 4H follows on from Tinker 3H - which flowed an estimated 20 million cubic ft/day of gas (mmscfd) and Tinker 2H last week which flowed an estimated two mmscfd of gas and was also showing oil.

Drilling will resume shortly but the company said it may be sometime before a fuller report can be given to the market.

"This initial flow is very encouraging and we need to continue to drill horizontally along this zone which we have just penetrated," reports Howard Brady, CEO of Mosaic Oil.

"It is far too early to say what the stabilised flow will be as we have to complete the well and properly test through production tubing."

"To have 3 out of 3 successful wells is very encouraging for the area and backs up our technical modeling," Brady added.