Electric logs run last night have indicated wet gas in the Permian Upper Tinowon sandstone over an 11.5m interval (2394 – 2405.5m). The logs also indicate the possibility of oil over a 12m interval in the younger Lower Triassic Rewan Formation (2316 – 2328m).

“This rank wild cat well – drilled outside of any conventional structure has been a stunning and unexpected success,” said Mosaic Oil CEO, Dr Howard Brady.

“We now know we have another Permian system which could cover many square kilometres. We will now need to delineate this system using 3D seismic which Mosaic will undertake after the wet season finishes and we are planning that for next winter (2005).”

The well was the first ever drilled in ATP709P, a licence covering over 400sq.km – wholly owned by Mosaic Oil.

Rockhampton High-1 is 20km north west of Mosaic’s Waggamba gas and oil field and 45km south of the Churchie (Mosaic 49%/ Santos 51%) Field. The new well lies just five kilometers east of Mosaic’s pipeline structure at its Tinker Fields.

Open hole drill stem test cannot be run because of very unstable hole conditions and the well will be tested through casing when a work over rig is available. The well has reached a total depth of 2527.5m and casing is being run before the well is suspended as a potential producer.

The drilling rig will move to the Churchie Field later this week to drill Churchie-5.

Shares in the company were up 4.5 cents on early trading to 21 cents.