Mediterranean Oil & Gas (MOG) reported Monday that it will be joining in the exploration of Malta's offshore Area 3 in Blocks 1, 2 and 3.
MOG is already involved in exploring Malta Area 4 with its partner Genel, as detailed in this recent article by Rigzone.
MOG said the new deal was agreed between itself, Transunion Petroleum and Nautical Petroleum (a subsidiary of Cairn Energy) to join Cairn in the exploration of the blocks.
The opportunity has come after Cairn, in December 2012, entered into a three-year exploration study agreement (ESA) with the Government of Malta for Area 3, which is located in the Sicily Channel and covers an area of approximately 2,300 square miles.
Under the terms of the new deal MOG, through a subsidiary, will assume a 40-percent working interest in the ESA and reimburse Cairn for 40 percent of its back costs incurred during the preparation of the ESA application and expenditure to date. MOG will also make small payments to Transunion in respect of their knowledge of the blocks.
MOG Chief Executive Dr Bill Higgs commented in company statement:
"We are very pleased to expand our footprint offshore Malta ahead of our exploration drilling in Area 4 later this year as MOG continues to geographically diversify exploration activities and capital spend. We look forward to working with Cairn to evaluate the exploration potential of Area 3, which we believe could mirror the exploration opportunities demonstrated elsewhere in the Sicily Channel."
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