|Mosaic Oil drilling the Churchie field with nitrogen.|
The partners, Mosaic 49% (operator) and Santos 51%, had earlier this month signed a gas contract with CS Energy, for the supply of 5Tj of gas per day for up to six months.
The partners are also studying plans to connect the Churchie-2 and Churchie-4 wells with spurlines to the central Churchie gathering station.
Mosaic advised the market late last month that an audit of gas reserves in the Churchie Field indicated an increase of 65% of 2P recoverable gas reserves in the Permian Tinowon Sandstone to 54.9 Billion Cubic Feet.
The audit further indicated a total of 129 BCF (132.8 PJ) of 3P gas reserves.
Mosaic Oil CEO, Dr Howard Brady, welcomed the contract and said active marketing of Churchie gas to commercial interest was continuing. He added that this short term Churchie contract was good news for the LPG Plant jointly owned by Mosaic and Santos.
Dr Brady said that it has been a profitable two weeks for Mosaic - 'Australia's developing oil & gas producer' - following the sale last week of up to 21 PJ's of gas over the next 5 years to CS Energy.