During fraccing of the Spring Grove well, oil reached the surface and indications are that the well can be successfully put on pump, Mosaic said. The company added the testing program is continuing and production data over a period will enable it to attribute 3P reserves to the oilfield.

According to Mosaic, Spring Grove is the first Permian Tinowon Sandstone oilfield to be discovered in the 40 years that exploration activity has been undertaken in the western part of the Surat Basin. Mosaic geologist's said they believe there is more potential for further such oil discoveries in the company's Surat Basin acreage.