Acting on the belief that this Victoria Petroleum-operated well in the South Australian Cooper Basin may have missed some oil, Mosaic Oil entered into a farm-in agreement.
Under the agreement Mosaic cased the Canberra 1A well for testing. Mosaic was to earn 50% of any oil recovered from the Canberra-1A well and 10% overall interest in the Canberra prospect.
The prospect is stratigraphic – a type of trap where Mosaic had acquired "considerable expertise" in Queensland, according to Mosaic CEO Dr Howard Brady.
Meanwhile Mosaic spudded Whinstanes-1 at PL 202 in south-east Queensland yesterday.
This well is the first of two wells being drilled back to back within Mosaic’s 100%-owned Waggamba production licence 202, which covers more than 75 square kilometres.
Whinstanes-1 is situated 3km south of the Waggamba-2 well and the expected total
depth is 2560 metres.
