The company said the funds raised from the placement and rights issue would be used to fund an accelerated drilling program in the region between 2008 and 2010.

“The board and management team have set themselves the target of improving on previous years’ success rates, where Mosaic Oil has averaged a 44% commercial success rate on its drill targets over the past five to six years,” it said.

Mosaic said it planned to start is 2008 drilling program immediately, weather permitting.