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The field will initially supply 5 million cubic feet of sales gas a day into the Queensland gas grid. In this initial phase, Mosaic expects its annual share of product sales to be approximately $4.2 million.
"The Mosaic team sees the Churchie field as a reward for our basic decision in the late 1990s to concentrate on the Permian Tinowon sandstone in this region", said Dr Howard Brady, Mosaic's chief executive officer.
"The new development is further confirmation that we are moving from an explorer to a producer".
Santos chief executive officer, John Ellice-Flint, added he welcomed the start of production from Churchie following the fast tracking of the field's development.
The Churchie field, discovered in 2001, is estimated to have proved and probable reserves of 23 petajoules of gas (2P) with an estimated 100 petajoules of possible gas reserves (3P).
Mosaic has a 49% stake and is operator of Churchie JV PL 192 with Santos holding a 51% stake.
