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Mosaic and Santos hold an extensive lease area – PL 192 – immediately south of Origin’s Myall Creek field.
Mosaic CEO, Lan Nguyen has often said he was confident that the Rewan Formation in this area of the Surat-Bowen Basin contains substantial hydrocarbon potential.
The success of Myall Creek-5, located about half a kilometre from PL 192, reinforces Mosaic’s earlier appraisal of the Rewan Formation in the Churchie area from 2001.
Mosaic’s 2001 drilling program – with a primary target zone in the Permian Tinowon – indicated good hydrocarbon potential in Rewan sands.
In reports to the ASX at the time, Mosaic noted “31 metres of gas bearing sand between 1916.5 and 1985.7 metres in the Rewan Formation. In the above interval 3-5 metres seem to have excellent porosity”.
A year later, in August 2002, Mosaic again reported that hydrocarbon shows had been found in the Rewan during drilling of its 100% Norkam 1 well.
Origin's success at Myall Creek 5 will almost certainly surely lead Mosaic and Santos to develop this new gas pool in the Churchie area.
Interests in PL 192 (Churchie field) are Mosaic Oil 49% (operator) and Santos Group 51%.
