The new well, Churchie-4, will be drilled by Mosaic as Operator using the drilling with nitrogen approach that has proved successful in past drilling in the Surat Basin after being introduced into the area by Mosaic in 2002.

The field is located in PL 192 south east Queensland, which was discovered in 2001 with Churchie-4 situated 1.3km east of the Churchie-3 well.

Churchie-3 is now flowing at 20 million cubic ft/day with Mosaic recently announcing that the Churchie field had an increase in reserves from 23 Petajoules to 34 PJ of 2P (probable proven) and 125 PJ of 3P (possible probable) reserves.

The new well will be used by the Joint Venture to consolidate further the 2P reserves of the Churchie Field and puts the partners in a strong negotiating position to replace long-term purchase contracts in southeast of Queensland.

Interests in the field are Mosaic 49% (operator) and Santos (51%).