Mosaic claims this will its projected record revenues of $14 - $17 million for financial year 2004-05.
Based on current sales those revenues will be repeated in 2005-06, providing Mosaic with strong cash support for further development, the company's directors stated in Mosaic's December quarter report.
Under the new agreement, Mosaic will on a best endeavours basis supply to CS Energy all gas from the present Waggamba-2 and 3 wells and from any further Waggamba wells drilled by Mosaic until the field’s annual output exceeds 3PJ per year.
This matches the previous CS Energy / Mosaic contract that became void with the failure of the Whinstanes 1 well and the temporary delay in developing Mosaic's 100%-owned Waggamba Field.
