Mediterranean Reports First Gas from Santa Caterina

Mediterranean Oil & Gas Plc (MOG) on Thursday released an update from its wholly owned Italian subsidiary, Intergas Piu (IGP), in relation to the start up of the production of the Santa Caterina Gas Field (onshore southern Italy) and the upgrade of its reserves.

Santa Caterina Field Production (Lucera Concession, MOG 13.6%)

The permit operator, Gas Plus Italiana, has advised that production from the Santa Caterina Gas Field has commenced. The initial production rate (100% basis) is 25,000 scm/d and will be progressively increased to a stabilized rate of approximately 30,000 scm/d.

Subsequent to the work-over carried out in September 2006, the San Caterina 2 well was completed for 9 sand levels over a depth range between 1,025 and 1,535 m/RT. Gas from the Santa Caterina field is delivered to the Reggente gas plant (already equipped for gas treatment and double stage compression) and from there it is distributed through the Italian gas pipeline network.

The operator has updated the remaining reserves estimate for the Santa Caterina Gas Field and has increased the Proven (P1) recoverable reserves (100% basis) to 117 MMscm (4.1 Bcf) and the Proven plus Probable (P1+ P2) recoverable reserves to 161 MMscm (5.7 Bcf).

Mediterranean's CEO, Giovanni Catalano, said: "The start up of the new incremental production from the Santa Caterina Gas Field adds to the Company's gas production base as part of IGP's ongoing production and reserves enhancement program from the Company's Italian assets."

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