It said tests on Waggamba-1 indicate that oil exists in the Triassic Showgrounds formation over a 10 metre interval and a sub-10 metre zone in the Permian Bandanna formation.

It said this oil is in addition to the oil zone discovered in 1981 at Waggamba-1 in the lower Tinowon Formation.

Mosaic said testing at the Waggamba wells could continue throughout November with some delays between tests while pressure surveys are taken.

Dr Howard Brady, Mosaic CEO comments- “There is much work to be done before we declare these oil zones commercial. However, the Showgrounds Formation in particular looks very encouraging.”