Under the drilling contract with Rig 7, Mosaic has the option to drill up to 15 wells in the Surat-Bowen Basin.

Mosaic managing director Lan Nguyen said the program also represented the beginning of his company's accelerated growth strategy.

"We have scheduled 10 oil and gas development and exploration wells, and we are actively working on the plan to expand this drilling program further," Nguyen said.

The campaign will primarily focus on relatively low-risk liquids-rich gas and oil development wells for increasing production output from the discovered probable (1P) reserves and also exploration and appraisal wells for increasing proven and probable (2P) reserves.

There is a balanced mix of oil and gas/condensate targets in the Triassic Rewan and Showgrounds reservoirs and also in the Permian Tinowon reservoirs.

Mosaic said it had substantial uncommitted 2P conventional gas reserves in the high growth Queensland gas market, adding that its infrastructure has plenty of spare capacity.