Drilling in the Waggamba-1H well is planned for mid-July using the Ensign rig 5.
Cave-ins of the section above the main oil target reservoir, the Showgrounds Sandstone, halted the horizontal underbalanced drilling of Fairymount-7H using coiled tubing in April 2004.
To minimise the risk previously encountered by underbalanced drilling, the well will be re-entered and drilled overbalanced using a polymer mud system.
Chief executive Lan Nguyen said the decision was a flow-on benefit from Mosaic’s recent farm-out deals.
“Available funds previously budgeted for exploration work commitments can now be used to accelerate lower risk oil and gas appraisal and development activities, to take advantage of high oil prices,” he said.
The Fairymount-7H area, according to engineering data, has high undeveloped oil potential, suggesting the well could produce up to 250,000 barrels of recoverable oil reserves if successful.
