Italy: Guendalina Gas Field Pays MOG’s Debt

The Board of Mediterranean Oil & Gas Plc, the central Mediterranean producer, developer and explorer of oil and gas assets, has announced that production from the Guendalina gas field, located offshore Italy, in the first quarter of 2012 achieved an average gross production (100% basis) of 580,000 scm/day, in line with the Company’s expectations.

This represents net production by the Company of 116,000 scm/day (MOG interest 20%) and yielded revenue of €4.0 million for the 1st Quarter of 2012.

Malta Seismic Survey

The processing by Fugro-Geoteam Pty Ltd of 1,012 square kilometers of the newly acquired 3D seismic survey data from exploration Area 4 offshore Malta is complete. Interpretation of this data will be carried out by MOG and by ERC Equipoise Ltd, the selected Independent Competent Person, with the results expected early in the 3rd Quarter of 2012.

As a result of the strong revenues from Guendalina offshore gas field and the company’s onshore gas assets, the Company proposed to immediately repay €2.0m previously drawn by MOG in February under the short term secured loan facility entered into with affiliated investment funds of Och-Ziff Capital Management Group to assist the Company fund the acquisition of the 3D seismic data offshore Malta. Following the repayment, the Company will have no debt outstanding.

Dr. Bill Higgs, Chief Executive of Mediterranean Oil and Gas, commented:

“We have made a very solid start to the year in delivering both reliable cash flow from our producing assets in Italy, and acquiring the seismic data required to evaluate our prospective resources offshore Malta.”

[mappress]
Offshore Energy Today Staff, April 23, 2012; Image: MOG