“Laboratory analysis of the oil and gas produced from Waggamba-2 supports the company’s belief in the potential of the liquids-rich Waggamba gas field,” Mosaic said.
Production from Waggamba-2 is now flowing through the newly built 25km pipeline into Mosaic's gathering system at the Silver Springs Plant and the flexibility of the contract with CS Energy means there is an immediate market for the gas, according to Mosaic.
The company said it expected Waggamba-3 to be brought on stream in April.
Mosaic Oil says it is planning to redrill Waggamba-1 – which was plugged-off in 1994 due to a mechanical failure of the packer during well operations – using coiled tubing as a horizontal underbalanced well.
"This technique should enhance well productivity compared to the original, conventionally-drilled well," the company said.
Before being plugged, Waggamba-1 had produced 0.39BCF of gas and 22,000 barrels of oil/condensate without any water production.
