Speaking at the company’s annual general meeting in Sydney yesterday, Mosaic chairman David Herlihy outlined Mosaic’s medium-to-long term strategy for shareholders.

He said the company plans to maximise oil and gas production from its existing wells and established infrastructure as well as implement a farm-out policy to better manage risk and accelerate exploration and production.

It also hopes to actively pursue new exploration and production opportunities in Australia and internationally.

Herlihy said taking into account current sales, planned drilling and expenditure on new ventures, for 2006-07 Mosaic was budgeting for an increase in production from 374,000 barrels of oil equivalent to 410,000boe.

It was also budgeting for possible earnings to grow from just under $16 million last year to over $16.5 million this financial year and earnings before interest, tax, depreciation and amortisation to increase from $3.5 million to more than $4 million.

“It is pleasing on behalf of the board of Mosaic to be able to tell shareholders today that the tough, ‘flat’ year we experienced last year has been broken,” Herlihy said.

“Some of the delays we experienced last year were beyond our control. The resources boom affected access to rigs, specialised equipment and skilled staff for many exploration companies – including Mosaic.”

Herlihy said at one stage, Mosaic joined with other companies and contracted a rig from Western Australia so drilling could continue in the Surat-Bowen Basin in southeast Queensland.

Mosaic also had drilling problems at Waggamba-1H and Fairymount-7H, he said.

Waggamba-1H has now been successfully drilled and Fairymount-7 suspended.

“The good thing to see with Mosaic is that we are moving forward, our cash flows are growing and we are putting in place an expanded and more diverse future,” Herlihy said.