Mosaic on steady growth curve

ONSHORE explorer Mosaic Oil has posted a record half-year revenue of $9.73 million, up 12.5% on the previous corresponding period, thanks to higher prices and output.

In a financial statement this morning, the Sydney-based company said it was on track to achieve record annual revenue of more than $17 million for the 2006-07 financial year, translating to about $4 million in earnings before interest, taxes, depreciation and amortisation.

Mosaic attributed the half-year result to higher production of natural gas, liquefied petroleum gas and oil/condensate from its Surat/Bowen basin operations, combined with continuing high prices for those products.

Production for the half-year to December was 216,649 barrels of oil equivalent, compared with 213,283boe and 160,787boe for the previous two half-years.

“This is attributable to production from the Silver Springs/Waggamba area increasing by 156% from June 2006 half-year to December 2006 half-year,” the company said.

“The production increase was mainly a direct result of the beam pump installation in that area.”

Not included in the production result was output from the Downlands-4 or Churchie West-1 wells, both of which are expected to come online either this month or next.

Chairman David Herlihy said the higher revenue result and several farm-outs have allowed Mosaic to further evaluate its higher-value assets at Hurricane and Kimu, as well as looking for additional exploration and production opportunities.

“In addition to oil and gas assets already in production, the company has a very promising portfolio of exploration prospects and appraisal drilling opportunities.”