The company said this was consistent with oil produced from Mosaic’s 100% owned Tinker Field in nearby PL 16.

The oil samples, extracted after perforating the lower three-metre interval of an 11-metre gross sandstone section of the Triassic basal Rewan Formation unit, will undergo laboratory testing, Mosaic said.

“The presence of oil in basal Rewan sands in Rockhampton High-1 is encouraging as it provides further evidence of the commercial hydrocarbon potential of ATP 709P,” CEO Lan Nguyen said.

“We will undertake further testing and specialised geological, seismic and engineering studies prior to making a decision on future development of the Rockhampton High oil accumulations.”

At the company’s AGM, chairman Dr Don Stammer said Mosaic was continuing talks with potential investors, but due to confidentiality agreements, could not reveal their identities.

“However, I can tell you that we believe the potential investors are bona fide,” Stammer said.

“The company is still in discussions and has provided certain parties with access to various material. We believe that they have everything necessary to evaluate the matters that are the subject of the confidentiality agreements.”

In August, Mosaic told the ASX it was providing due diligence and was in discussions with the initial potential investor.

The following month, the company said it had been approached by additional potential investors, with Patersons Securities Ltd to act as its advisor.

In the latest announcement, Stammer said the company would release further details to the market as the discussions progressed or were terminated.