The well penetrated about 336m of the main Tinowon Sandstone reservoir with gas shows over 2000 units and oil shows with 95% trace, the company said.

Mosaic is currently laying out drill pipes and plans to place the well on a clean-up flow before connecting it to the Waggamba gathering network for production testing.

Weather permitting, Waggamba-4H is expected to be connected to the gathering network in the next three weeks, the company added.

Waggamba-4H is targeting mean recoverable reserves of 2.5 billion cubic feet of raw gas and is the second of up to 15 wells the company is drilling with the Century Rig 7 in the Surat-Bowen Basin this year.

Once the well is completed the rig will move on to drill the Taylor-18 gas development well prior to drilling the Armstrong-1 oil exploration well.

In other company news, Mosaic has posted a production increase for the March quarter, due to strong performance from the Silver Springs and Waggamba areas.

The company's total production for the quarter was 103,134 barrels of oil equivalent, up 5% from the last quarter.

This included a 24% increase in gas production at Silver Springs/Waggamba due to the high availability of wells and facilities over the previous quarter, which was affected by a gas customer's shutdown.

Revenue for the period was $9.9 million including $3.5 million the company received from CS Energy for the drilling of Waggamba-4H gas and condensate well.