Italy-focused Mediterranean Oil & Gas (MOG) highlighted its drilling plans for its Ombrina Mare and Maltese assets as the firm reported a first quarter update Friday.
After a positive ruling on MOG's submission of its environment impact assessment (EIA) for Ombrina Mare offshore development, the company has commissioned ERC Equipoise to complete by June a competent persons report detailing the reserves and resources in the field. MOG then plans to drill a pilot development well in the first half of 2014.
Meanwhile, MOG has made progress in Malta with the completion of its farm out to Genel Energy and the appointment of AGR Well Management for the drilling of the Hagar Qim 1 well.
MOG achieved net gas production of some 3.9 million cubic feet of gas per day during the first quarter, with 3.34 million cubic feet per day coming from its offshore Guendelina field. Guendelina well GUE-2ss – which accounts for 30 percent of the field's production – was taken offline on March 5 in order to find out what had caused an influx of water. MOG and its partner Eni (the operator) are analyzing possible remedial work so that the well can be restarted.
Analysts at London-based investment bank Liberum Capital commented that the shut-in "appears temporary and recoverable reserves should be unaffected".
Commenting on the update Friday, MOG Chief Executive Dr Bill Higgs said in a statement:
"We have had a busy start to what is going to be an important year for MOG as we gear up for the drilling program in Malta in Q4 2013 and as Ombrina Mare appraisal drilling draws nearer. We are financially strong and continue to build our cash position from production."
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