MDL Medoil

RNS Number:0085Y
MedOil PLC
07 February 2006




                                                                07 FEBRUARY 2006

                     MEDOIL PLC ("MedOil" or "the Company")

                UPDATE ON TRADING ACTIVITIES - TUNISIA AND MALTA
The Directors are pleased to update the market on progress at its offshore
permits in Tunisia and Malta.

TUNISIA - LOUZA PERMIT
On 8 November 2005 the Company gave brief details of the conclusions of the
report produced by Merlin Energy Resources Ltd ("MERL") dated October 2005. A
copy of the full report has been placed on the Company's website:
www.Medoilplc.com. As outlined in the 8 November 2005 announcement, the Company
intends to carry out a major 3D seismic survey which is expected to cover
approximately 600 sq kilometres over the area covered by the MERL report. The
Directors are pleased to announce that a letter of understanding has been signed
with Scan Geophysics of Norway to carry out the 3D survey in June / July 2006.
The total cost to the Company of the survey is expected to be no more than #2
million. The Directors believe that this survey should help to identify the
optimum location for an appraisal well on the M'Sela oil accumulation as well as
identifying an exploration well location on one of the four additional prospects
identified by the Company at M'Sela West 1, M'Sela West 2, M'Aila East and
Ourata.

The MERL report provided volumetric estimates at the P50 confidence level (as
defined under SPE guidelines) of the M'Sela discovery and the other four
exploration prospects as follows:
                           In place                  Recoverable
                           oil volumes               oil reserves
                           MMbbl                     MMbbl
M'Sela 1                   499                       109
M'Sela West - 1            253 
M'Sela West - 2            120
M'Aila East                217
Ourata                     175

Note : Source - Merlin Energy Resources Limited

Reserves were estimated at the P50 confidence level under SPE guidelines. M'Sela
reserves are contingent resources, the remaining prospects' reserves are
prospective resources.

Once the 3D survey results are available, the Directors intend to seek to make
arrangements to contract a rig to drill an appraisal well on the M'Sela
discovery, possibly followed by an exploration well on one of the four
prospects. At the same time the Directors will be seeking to negotiate terms
with potential farm-in partners in respect of the Louza permit and in this
regard the Company has already received a number of unsolicited approaches from
major oil companies.

MALTA
The Company updated shareholders on 5 December 2005 on the Maltese permit and
the report by ECL. The Company intends to conduct a limited but focussed 2D
seismic programme in order to seek to enhance the value of the asset. This
seismic programme is anticipated to be carried out in quarter three of 2006. The
Company's current intention is to make an application to renew its Maltese
permit in May 2006, subject to obtaining the necessary government approvals.

FUTURE PROSPECTS
The Company is continuing its strategy of seeking to acquire further assets in
the Mediterranean area where the experience and knowledge of the Directors can
seek to create value whilst remaining focussed on creating shareholder value
from the Company's Tunisian asset.

The Company is currently evaluating a number of potential projects, some of
which the Directors believe will become available in 2006. These additional
potential opportunities together with the Company's existing financial
commitments mean that the Company is considering raising additional equity
capital in the near future.

The Directors expect to release the preliminary results for the Company's first
financial period in March 2006.


Definitions
MMbbl - Million barrels of oil

P50 - 50 per cent probability that value will be equal to or greater than stated
value. Note that where indicative STOIIP and reserve volumes are mentioned these
are probabilities of volume size if any moveable hydrocarbons are encountered.

STOIIP - Stock tank volume of oil initially in place.

SPE - The Society of Petroleum Engineers

                                   ---ENDS---

Enquiries:

MedOil plc                                                    Tel: 0207 921 0001
David Thomas, Chief Executive Officer
John Lander, Chairman                                      Mobile: 07768 851 144

Bishopsgate Communications Limited                            Tel: 020 7430 1600

Maxine Barnes
Nick Rome




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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