"We are looking forward to the exploration potential in this very large onshore block that has similar geological settings to the Italian areas where Mediterranean Oil & Gas has long-standing experience and expertise in the E&P business," said Giovanni Catalano, Mediterranean's CEO. "The combined experience of the joint venture with Range Petroleum and Carthago will help to properly evaluate the potential of this relatively unexplored area of Tunisia." Range is the operator.
The pending agreement, which will require approvals from Range and the Tunisian government, contains the following stipulations:
The Medjerda block is located onshore Northern Tunisia and covers a surface of 4,956 square kilometers thattt results from the 2004 merger of the former Medjerda and Tabarka exploration acreages. According to Mediterranean, seismic and geological works carried since 1995 have defined several prospects and leads in several geological "domains" that constitute the geological subdivisions of the block.
Range and Carthago have identified the Teboursouk prospect and matured it to drillable status. Mediterranean's board believes that the first well could be spud in the fourth quarter of this year.
Mediterranean said that the prospect's development cost would be low, given its proximity to the Bizerte refinery and the favorable fiscal regime. The company contends that the threshold for an economical discovery on the block is approximately 10 MMbbls based on an oil price of US$20/bbl.
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