Mosaic today said the operation is now pulling out of 12-1/4-inch hole prior to running 9-5/8-inch surface casing.

The well is expected to take about 18 days to drill to a planned depth of 2178m.

Mosaic said the well would be drilled with nitrogen in the primary gas/condensate target reservoir, the Permian Tinowon Sandstone, which is productive in the adjacent Churchie and Myall Creek gas fields. Secondary potential also exists in the early Triassic Rewan Formation reservoirs.

Churchie West-1 is located about 2.5km south-southwest of the Churchie-3 Tinowon Sandstone gas-producing well and 1.3km north-northwest of the Noorindoo-1 Tinowon Sandstone gas/condensate discovery well.

If it makes a successful discovery, the Churchie West-1 well would have extended the reservoir fairway from the Churchie field into PL 213.

The Churchie West joint venture, in which Mosaic is operator with an 83.3% interest and Santos has a 16.66% stake, was awarded the PL 213 permit in April.