Onshore - Offshore & International - New Ventures - Acreage Management Strategy
In addition to the Company’s on-shore activities in Queensland, Mosaic has two projects each of which has the potential to be a “company maker”. These are the Hurricane discovery on the North West Shelf and the Kimu gas field in Papua New Guinea, both of which are currently moving to the next stage of appraisal. If successful, either one of these could significantly change Mosaic’s market capitalisation, our potential cash flow and our reserves.
The Santos-operated joint-venture, WA-208-P (MOS 6%) on the North West Shelf, WA, includes the Hurricane gas discovery. The Hurricane-2 well was spudded in June 2007, and in July 2007 Mosaic Oil and the Operator Santos announced that drilling had been successful in identifying a new oil and gas discovery. Whilst the commercial viability of the well as a stand alone proposition is yet to be decided, the discovery at Hurricane-2 has already enhanced the prospectivity of the permit. The Joint Venture - of which Mosaic Oil is a part - will review options for the future exploration of this permit later in 2007.
In Papua New Guinea, the Oil Search-operated Kimu gas field (MOS 28.6%) which contains an estimated resource of over 1 trillion cubic feet (TCF) of recoverable gas, is attracting renewed interest from both the PRL 08 Joint Venture and potential gas customers.
At present, considerations are being given to the development of industries in PNG with high gas supply needs and/or to the longer-term potential for PNG to supply liquefied natural gas (LNG) to Asian markets. The PRL 08 (Kimu) Joint Venture is intending to undertake further seismic and appraisal drilling to position itself as one of the contenders to supply gas into these proposed developments.