| In production and generating strong cashflow Mosaic Oil N.L. (ASX: MOS) is a successful junior Australian explorer and producer of oil and gas. The Company’s principal producing assets are based in the highly prospective proven producing Surat and Bowen basins of southeast Queensland. Mosaic’s focus on Queensland now involves accelerated evaluation of the Company’s extensive exploration and production acreage, ongoing development of new commercial petroleum plays and discoveries similar to the basin-centred hydrocarbon plays in the Canadian Deep Basin of Alberta and American Rocky Mountain area of Wyoming, and greater use of the Company’s own extensive production infrastructure. In Queensland, Mosaic’s processing facilities deliver revenue and allow the prospect of better financial yields as more discoveries come on line. Well located to support both existing producing fields and new discoveries, Mosaic’s facilities include:  LPG Processing Plant (50%, Santos 50% & Operator) Silver Springs Processing Plant (100%) Pipelines connecting plants and major fields Satellite plantsIn addition to extensive on-shore activities in Queensland, the Company currently participates in one off-shore Australian asset, the Santos-operated joint venture WA-208-P (MOS 6%) on the North West Shelf, WA. This permit contains the Hurricane gas discovery, on which the Hurricane-2 appraisal well has recently been drilled. Hurricane-2 (Operator Santos) - a new oil and gas discovery - has provided encouragement for further exploration of the permit, which will be evaluated by the Joint Venture of which Moasic Oil is part later in 2007. Internationally, Mosaic has an interest in the Oil Search-operated Kimu gas field (PRL 08; MOS 28.6%) in Papua New Guinea with an estimated resource of over 1 trillion cubic feet (TCF) of recoverable gas. Recent developments in commercialising PNG’s significant gas reserves has seen the Kimu gas field attracting renewed interest from both the PRL 08 Joint Venture and potential LNG customers. If successful, either one of these projects could significantly change Mosaic’s market capitalisation, our potential cash flow and our reserves. New ventures on track Mosaic has established a new business unit to identify new venture opportunities both in Australia and in strategic overseas locations. The key objective of this business unit is to diversify Mosaic’s development and exploration activities beyond the Company’s current Queensland core area. Mosaic will seek to access high potential exploration drilling opportunities, as well as lower risk projects in producing basins that offer the opportunity for early cash flow. The Company will focus on new ventures that provide for early development and an ability to deliver short or near term cash flow, whilst at the same time seek opportunities that have the potential to contribute to Mosaic’s longer term growth. |
 Silver Springs Processing Plant – Mosaic owns 100% |