Century Resources will provide Rig-7 for the campaign, which is due to start in mid-February depending on the weather.

“We now have funds to implement the company’s accelerated drilling programs, and have finalised plans to target 10 wells per year over the next three years,” Mosaic managing director Lan Nguyen said.

“Mosaic Oil has a strong acreage position in the Surat-Bowen basin, and this acreage is located in close proximity to infrastructure that the company owns or part-owns.”

The 2008 drilling campaign will focus on low-risk, liquids-rich gas and oil development wells for increasing production output from the discovered probable reserves, as well as exploration and appraisal wells for increasing proven and probable reserves.

Nguyen said Mosaic had substantial uncommitted 2P conventional gas reserves in the Queensland gas market and the company’s infrastructure has plenty of spare capacity.

“We are confident that we will be able to translate any drilling success quickly into cashflow,” he said.

“Importantly, our existing gas contracts also have capacity for material production increases.”