The financial result is a massive change in fortune from the previous year for the junior producer when the company announced a loss of $0.72, and includes a rise in overall revenue up to $10.18 million compared to $9.08 million in 2002.
Mosaic will use the HCTD system beginning late October 2003 on re-drilling 4 of its 100% owned wells at the producing Tinker complex. In November, traditional nitrogen drilling will be used at Waggamba (Mosaic 100%) and for another well planned within the Churchie Gas Field (Mosaic 49%, Santos 51%).
Mosaic will spend around $4 million on this drilling program in the next two quarters but $2 million will be borrowed investment capital enabling Mosaic to preserve its cash reserves of around $5.8 million.
At the company's Tinker gas complex, Mosaic will re-enter four existing wells before redirecting up to 400m sideways at each location within the producing reservoir with the strong expectation of increasing gas and oil flows at substantially lower cost than drilling new wells.
Sensors at the drill bit relaying geological information to television monitors on the surface allow well site geologist to alter the direction of drilling instantly even while oil and gas continue to flow to the surface.
Using a seamless metal tube that curves away from the main bore hole, the drill bit works horizontally through the target area providing multiple opportunities for a strike as opposed to just one with traditional drilling.
Two years ago Mosaic Oil introduced nitrogen drilling into Australia and its most successful strike so far, Churchie #3, is the biggest gas find in the Surat Basin's history and is significantly supporting Mosaic's profits.
