Mediterranean Oil & Gas Plc has completed the sale of 75% of MOG’s shareholding in its wholly owned subsidiary, Phoenicia Energy Company Ltd (“PECL”), to Genel Energy plc (“Genel”). PECL owns the rights to exploration activity in Malta Offshore Area 4.
Under the terms of the sale agreement Genel has acquired MOG’s 75% interest for the following consideration:
*An immediate cash payment of US$10 million;
*100% carry of the cost for the first exploration well Hagar Qim 1, planned to be drilled to a minimum depth of 2,500 metres;
*100% carry of the cost for the second exploration well up to a maximum of US$30 million gross expenditure;
*At MOG’s option, should the costs of the second well exceed US$30 million, Genel will provide a financing arrangement to fund MOG’s 25% share of any additional expenditure, at an interest rate equivalent to 3 Month Libor plus 400 bps.
Bill Higgs , Chief Executive of Mediterranean Oil & Gas, commented:
“We are very pleased to have completed this transaction with Genel. This enables PECL to progress with the preparation for the drilling of the MOG operated Hagar Qim 1 exploration well offshore Malta, planned for late 2013.”
[mappress] March 1, 2013