MOG: Guendalina Field Improving after Remedial Ops

Mediterranean Oil & Gas (MOG) reported Monday that the Guendalina gas field, offshore Italy in the northern Adriatic, is recovering its production rate thanks to remedial work carried out by operator ENI.

MOG said that its average production fell during the fourth quarter of 2013, to 293 barrels of oil equivalent per day from 399 boepd in the previous quarter, due to Guendalina wells GUE 3ss and GUE 2ss remaining offline for the full quarter. During 4Q 2013, Guendalina achieved gas production of 212 boepd net to MOG (which holds a 20-percent stake in the field).

Investigative work by ENI during the quarter showed that the reservoir remains in good condition in terms of pressure and absence of formation water, and that issues with production performance were likely due to the plugging of the well completion.

On December 24, ENI initiated remedial operations to restore production at GUE 3ss. Although hampered by difficult weather conditions in the Adriatic, MOG said this intervention was completed successfully on January 11 and the well returned to low-rate production. Consequently, the Guendalina field is currently producing at around 229 boepd net to MOG, which said a further update will be made once production from GUE 3ss has stabilized.

During the fourth quarter, MOG's onshore Italy gas fields achieved a net production rate of 82 boepd.

Meanwhile, MOG also reported that its Maltese joint venture with Cairn Energy has approved the acquisition of approximately 900 miles of broadband 2D seismic offshore Malta during the first half of this year. Cairn, the operator, is finalizing the preparation of the seismic campaign.

MOG Chief Executive Dr Bill Higgs commented in a company statement:

"The fourth quarter of the year was a difficult period for the company with the continued production challenges at Guendalina. We are pleased early indications suggest that sustained production can be resumed at GUE 3ss.
"We look forward to a very active first half of 2014 as we move ahead with our drilling campaigns offshore Malta and onshore Italy, as well as the acquisition of new seismic data offshore Malta Area 3."

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