MOG Med Oil & Gas

TIDMMOG

RNS Number : 0412M

Mediterranean Oil & Gas Plc

11 July 2014

11 July 2014

Mediterranean Oil & Gas Plc

(the "Company" or "MOG")

Q2 2014 Operational Update

The Board of Mediterranean Oil & Gas Plc (AIM: MOG) is pleased to announce the following operational update for the three months ended 30 June 2014.

Production and Revenues

Production:

MOG's total net production for Q2 2014 was 4.06 MMscm (equivalent to 0.14 Bcf, or 25,827 boe). This represents average net production of 44,624 scm per day or 284 boe per day during the period (Q2 2013: 525 boe per day).

The Guendalina Field achieved net gas production (MOG 20% W.I.) of 3.12 MMscm (equivalent to 0.11 Bcf or 19,815 boe). This represents average net production of 34,237 scm per day or 218 boe per day in Q2 2014. Unfortunately, the operating conditions of the well GUE 3ss have continued to deteriorate with characteristics similar to when the well initially showed production problems. The operator is reviewing the situation and will formally recommend a plan of action in due course. The Guendalina Field is currently producing approximately 30,240 scm (192 boe) per day net to MOG.

The Company's onshore Italy gas fields achieved net production of 0.95 MMscm (equivalent to 33.4 MMscf or 6,011 boe) during the period. This represents average net production to the Company of 10,386 scm per day or 66 boe per day.

Revenues:

MOG's total net revenue for Q2 2014 was EUR1.02 million, which was 3% lower than Q1 2014 and represents an average realised price of EUR0.252 per scm.

Subsequent Event

Aglavizza Production Concession:

On 9 July 2014 the Engineering, Procurement and Construction ("EPC") contract for the gas treatment and compression facilities of the Civita gas field development was signed by MOG's wholly owned subsidiary Medoilgas Civita Ltd ("MCL") with the Italian consortium of Maris-CMTI. The contract was awarded with a consortium bid of EUR1.11 million and construction is planned to commence in September 2014.

Maris srl, based in Milan, will complete the detailed engineering and CMTI srl, based in Ortona in the region of Abruzzo, will carry out the procurement, construction and installation. Both Contractors have 30 years of experience in the oil and gas industry.

The separate 3km pipeline construction contract is expected to be awarded by the end of July 2014.

The first gas from the Civita gas field, which is located in the Aglavizza Production Concession in Abruzzo Region, is planned for Q3 2015.

QUALIFIED PERSON

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Bill Higgs, Chief Executive Officer of Mediterranean Oil & Gas Plc, a geologist, explorationist and reservoir manager with over 24 years oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement.

NOTES TO THE EDITOR:

The 7 km2 Aglavizza Production Concession, in which MCL has a 100% working interest, was awarded on 2 January 2013. The Civita 1 well discovered gas bearing sands of Tertiary age at a depth of approximately 1,200 meters and 3P reserves of 1.28 bcf have been certified by ERCE Equipoise Ltd in 2013. A step-rate production test and build up analysis was successfully completed on 30 January 2013 and has confirmed a production potential around 18,000-20,000 scm/day (636-706 Mscf/day).

ENQUIRIES:

 
 Mediterranean Oil & Gas Plc 
 www.medoilgas.com 
 Bill Higgs/Chris Kelsall                 Tel: +44 (0)207 959 2322 
 Liberum Capital Limited 
  (Nominated Adviser and Joint Broker) 
 Clayton Bush/Tim Graham                  Tel: +44 (0)203 100 2222 
 RBC Capital Markets (Joint Broker) 
 Matthew Coakes/Jeremy Low /Jonny Hardy   Tel: +44 (0)207 653 4000 
 FTI Consulting (Public Relations) 
 Ben Brewerton/Alex Beagley               Tel: +44 (0) 203 727 1065 
 

Glossary

 
                      Standard cubic meter 
        *    Scm: 
                      Million standard cubic meters 
        *    MMscm: 
                      Standard cubic feet 
        *    scf: 
                      Million standard cubic feet 
        *    MMscf: 
                      Billion standard cubic feet 
        *    Bcf: 
                      Stock tank barrels of oil equivalent 
        *    boe: 
                      Million stock tank barrels of oil equivalent 
        *    MMboe: 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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