12 May 2007 - 11:29
  • News Code: 104353

Mediterranean Oil & Gas PLC will shoot 2D seismic spanning 1,000 sq km of Area 4 off Malta using Seabird Exploration"s seismic surveying vessel M/V Geo Mariner. The vessel is expected to arrive in Malta May 20, and the seismic shoot will take 7-10 days.

The seismic data will improve the company"s understanding of large prospects in the area covered by its exploration study agreement (ESA) with Malta to gather new data, said Giovanni Catalano, CEO of Mediterranean Oil & Gas. "After that we will have the right to sign a production-sharing contract (PSC)," he told OGJ. "The agreement lasts until March next year."

 

The southern offshore area of Malta is an underexplored petroleum province connected to an extension of the Libyan and Tunisian offshore proved hydrocarbon provinces.

 

Mediterranean Oil & Gas estimated that the previously identified prospects at Hagar Qim, Skorba and Tarxien, together with newly identified prospects, particularly Luzzu, have prospective resources of 1.5 billion bbl.

 

The Maltese authority has approved its farmout agreement with Leni Gas & Oil PLC, Mediterranean Oil & Gas said. Leni will spend $5 million to acquire a 20% interest in Maltese acreage—Blocks 4, 5, 6, and 7 of Area 4. Mediterranean Oil & Gas will continue to serve as operator with an 80% equity stake. Leni can boost its interest in a PSC over the ESA area to 50% by funding 80% of the cost of a well.

 

PIN/OGJ.COM

News Code 104353

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