The market has been quick to respond to the news with the company's share price jumping 25% in early trade this morning on a turnover of around 15 million shares at the time of printing.

On the back of Origin Energy's 15 year Queensland CBM supply deal with Queensland Alumina Limited, the discovery represents yet another cheap alternative gas supply to the proposed $6 billion dollar PNG gas pipeline.

Mosaic now estimates that the Tinker complex, covering 40sqkm, has a 3P resource with possible recoverable reserves of 60 billion cubic feet, with oil also present within the complex.

Tinker 3H was suspended late yesterday awaiting completion and testing while the coiled tubing drilling unit will now move to the Tinker 2 location where horizontal drilling should be completed by the end of next week.

Mosaic said that this drilling now confirms the theory that the northern area in PL16 where sixteen wells have been drilled in the past is one large stratigraphic system covering an estimated 40sqkm.

The sands intersected in the Tinker 3H operation had an estimated vertical thickness of 3-5m.

Adding to the company's good fortune is the fact that the Tinker Field is wholly owned by Mosaic and is already connected by a series of gas pipelines to Mosaic's treatment plant at Silver Springs.

Tinker 3H is the first of four wells to be drilled using coiled tubing horizontal drilling and nitrified liquids during its first trials in Australia.

Mosaic's 100%-owned Tinker 2, Tinker 3, Tinker 4 and Lark 1 wells in the Surat-Bowen Basin in southeast Queensland are being used as quick entry points at a depth of around two kilometres.

The drilling unit will drill up to 400m horizontally away from the existing well bore into new oil/gas target zones. Drilling of the other three wells will proceed following the completion of Tinker 3.