Nguyen said the company plans to increase its 10-well drilling program in the Surat Bowen Basin, continue to farm-out selective wells and exploration areas, and evaluate coal seam methane potential in existing wells in the Silver Springs area.
He said the drilling program in the Surat Bowen could increase to 15 wells following success at Fairymount-9, Waggamba-4H and Taylor-18.
Waggamba-4H is expected to begin producing by June 1, while the Taylor-18 well is expected to be connected to the Taylor gathering network by the end of June.
According to Mosaic, Waggamba-4H is the first commercially attractive horizontal well in the Waggamba Field and has provided scope for an increase in the field's 2P and 3P reserves.
Following the completion of Waggamba-4H, Mosaic plans to spud the Waggamba-5H.
Nguyen also said the company would continue to farm-out selective wells and exploration areas in the Surat Bowen Basin, as part of its effective capital and risk management.
Mosaic will also accelerate lower risk exploration and appraisal activities with wells to be drilled this year and in 2009.
The company is also planning to test coal seams in Silver Springs wells and identify opportunities outside its acreage using leverage from its rig contract and infrastructure access.
Nguyen said re-completing wells has no capital cost for drilling and connection, has low capital cost for re-completion, and minimal incremental operating cost in the operated areas.
The Silver Springs-6 well is planned to be perforated and completed for pumping in June and the Taylor-15 well is planned for September, he said.
Nguyen also said there was exploration upside potential from the Freneau Prospect in ATP 709P, Western Surat Bowen Basin.
The Freneau prospect is in the gas-condensate Tinowon Sandstone play, up-dip from the Tinowon oil recovery in Rockhampton High-1 and has a potential P10 recoverable gas resource of 71 billion cubic feet.
Nguyen said Mosaic is also expecting growth potential in future commercialisation of the Kimu gas discovery in Papua New Guinea and the Hurricane oil and gas discovery offshore Western Australia in WA-208-P.
