MOG Med Oil & Gas

 

TIDMMOG 
 
RNS Number : 0018F 
Mediterranean Oil & Gas Plc 
05 January 2010 
 

5 January 2010 
 
 
MEDITERRANEAN OIL & GAS PLC 
 
 
(AIM: MOG) 
 
 
(The "Company" or "MOG") 
 
 
Italy - Guendalina Gas Field (MOG 20%, ENI 80% and operator) 
Award of Guendalina Production Concession in Italy 
 
 
The Board of Mediterranean Oil & Gas Plc (AIM: MOG), the central 
Mediterranean-focused producer, developer and explorer of oil and gas assets, is 
pleased to announce that the Ministry of Economic Development (the "Ministry") 
has now awarded the production concession for the Guendalina gas field (AC 35 
AG). The award will be published in the Ministry's official bulletin (Italian 
Hydrocarbon Bulletin (BUIG year LIV n. 2 - 31st January 2010)). 
. 
As a result of the concession award and given the latest timetable provided to 
MOG by ENI SpA ("ENI"), MOG expects ENI to start development activities on the 
Guendalina gas field in January -February 2010. 
 
 
Based on the last information received from ENI: 
  *  construction and installation of the production platform is scheduled to be 
  completed in 2010, 
  *  drilling of two development wells is planned in the first half of 2011, and 
  *  gas production and associated revenues are expected to commence prior to the end 
  of June 2011. 
 
 
 
ENI is currently completing the review of  the required development capital 
expenditure for the project and has informed MOG that it expects an increase in 
costs compared to previous estimates provided by ENI.  The Company expects that 
ENI will confirm the updated development capital expenditure to MOG by the end 
of January or early February 2010. 
 
 
Based on studies performed by ENI, the aggregate gas production from the field 
is expected to be around 20 MMcf/d (100% basis). MOG has a 20% interest in the 
Guendalina gas field which has independently certified 2P gas reserves of 22 Bcf 
(100% basis). 
 
 
Sergio Morandi, the Company's CEO, stated: 
 
 
"The Company  continues to achieve milestones in its progress towards the 
corporate  goal of becoming a medium sized oil and gas producer. The Guendalina 
field's gas production will allow MOG to triple in 2011 its current annual rate 
of net gas production." 
 
 
 
 
 
QUALIFIED PERSON 
Sergio Morandi (a director of the Company) holds a first class honours degree 
in geology from La Sapienza University (Rome) and has over twenty eight years of 
E & P experience spent in oil and gas exploration and operations management and 
seismic data acquisition, processing and interpretation with ENI, Coparex, ELF, 
Enterprise Oil, Shell Italia E&P and Shell International E&P. Mr Morandi's last 
position held was as International Geophysical and Business Advisor with Shell 
International E&P at EPTS - Centre of Expertise in The Netherlands. His earlier 
roles include Head of Exploration for Shell Italia E&P and as Head of 
Exploration and Chief Geophysicist for Enterprise Oil Italiana. Mr Morandi has 
been a lecturer in Applied Seismology at the Basilicata University in Italy, is 
a board member of Associazione Mineraria Italiana, is a current member of the 
European Association of Geoscientists and Engineers, registered member number 
563 of the Lazio Geologists' Order and has been a registered geological 
adviser to the Rome and Viterbo Tribunals in Italy. Mr Morandi is a "qualified 
person" for the purposes of the AIM Guidance Note for Mining and Oil and Gas 
Companies June 2009. He has compiled, read and approved the technical 
disclosures contained in this regulatory announcement which comply with the 
SPE/WPC standard. 
 
 
GLOSSARY 
Bcf:billion cubic feet of gas 
MMcf/d:  million cubic feet of gas per day 
2P: proven plus probable reserves as defined in the SPE/WPC Standard 
 
 
 
 
ENQUIRIES: 
 
 
Mediterranean Oil & Gas Plc 
www.medoilgas.com 
 
 
Sergio Morandi, CEO Tel: +39 066 88 941 
Chris Kelsall, Finance Director   Tel: +44 (0) 789 104 0658 
 
 
WH Ireland Limited 
 
 
James Joyce / David Porter   Tel: +44 (0) 20 7220 1666 
Ambrian Partners Limited 
Richard Swindells     Tel: +44 (0) 207 634 4856 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCUGUBUGUPUGMC 
 

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