The companies said although it is a development well Churchie-5 could significantly increase 2P reserves of the field. The main target of the well is the Permian Tinowon Sandstone and the secondary target is the younger Triassic Rewan Formation.

Additionally, one of Mosaic’s pre-conditions for the CS Energy contract to supply up to 21PJ of gas is the construction of a 25km pipeline from the Waggamba field to the Taylor Processing facility in southeast Queensland. Gas delivery under the main contract is required by 1st April 2005.

The company said the pipe has now been fabricated and is being delivered to the construction site with construction over 1/3 complete, around 12km have been welded and 8.5km trenched. Completion of the pipeline is expected to be in December - ahead of schedule.