Brady also confirmed the company's belief of what is virtually a new gas province - a large area where the Permian Tinowon sandstone and maybe some other deeper Permian sands are all virtually gas charged - with the area taken as a whole (not just Mosaic areas) possibly holding a source of more than 1 TCF of conventional gas.

"The most prospective region is a corridor about 25 km wide running about 100 kms from north of Myall Creek to the east of Mosaic's Silver Springs operation. Within that area two updip migration focal points occur: one at Churchie - Myall Creek in the north, and the other at Waggamba in the south," said Brady.

The meeting was told that Mosaic Oil's deputy CEO, Lan Nguyen, had developed a new approach to research and seismic evaluation, which had unlocked the gas and oil of the region bypassed for so long by so many others.

Brady added that Mosaic Oil used its early knowledge of the region to purchase potentially rich oil and gas leases before embarking on a drilling campaign that introduced successful new techniques into the Australian industry.

"During this period Mosaic drilled the first successful pure nitrogen well onshore Australia and the first under-balanced horizontal well using coiled tubing and nitrified fluids. Tinowon wells have been cased to just above target and the target sands drilled with either a standard rig or now a coiled tubing drilling unit," Brady added.