Looks Good On Paper: MOG Drills Teboursouk 1 To TD, Tests To Come

The Board of Mediterranean Oil & Gas Plc wishes to announce the latest operational update on its drilling programme.

Exploration Well Teboursouk 1 ("TEB1"), Tunisia (Range Operator; MOG 25%).

CTF Rig 06 has reached the total depth at 2,545m after penetrating a substantial thickness of siltstones and compact sandstones levels with intercalations of marls and shales in the primary target, the Lower Aptian M'Charga formation. Gas shows of about 0.2 % have been recorded associated with poor cut fluorescence and presence of bitumen.

Whilst drilling the Carbonate Complex Formation (originally the secondary target), dark limestones (Bahloul Formation) which are possibly oil bearing were encountered at approximately 1,000 metres depth. Within this formation the image logs have highlighted the presence of a 5 metre section with high porosity associated with a very large fracture system and with the presence of fair to good cut fluorescence. The gas reading decreased strongly and sharply. This may be interpreted as a good sign for a permeable zone where hydrocarbons are swept into the geological formation.

The revised work programme is now designed to run a full set of logs on the Lower Aptian M'Charga formation (originally the primary target) and to complete the evaluation of the well results. A drill stem test ("DST") will also be executed in the Carbonate Complex formation at about 1000m.

The results of the DST test are expected in 2 weeks time.

Once the test results are available an overall preliminary reinterpretation of the prospect will be conducted. At that point the operator, in consultation with the partners, will be able to determine the outcome of the well and whether: the well should be completed as a producer; a sidetrack should be drilled; the well should be suspended and the rig demobilised whilst detailed analysis is undertaken and the results incorporated into the prospect model; or the well should be plugged and abandoned.

TEB1 well is first exploratory well on the Teboursouk prospect located in the southern part of the Medjerda Permit. The exploration well was designed to evaluate a new oil and gas play concept for the area, where several Cretaceous proven source rocks are expected to participate in feeding the Teboursouk structure with hydrocarbons.

Sergio Morandi, Company CEO, said, "The Teboursouk 1 results to date are very encouraging. Whilst we still need to perform further work to evaluate the Carbonate Complex and M'Charga formations the well targeted, the TEB1 well has confirmed the presence of an active petroleum system in the Tunisian belt and confirmed the validity of the exploration play.

In addition to evaluating the TEB 1 well results from the Carbonate Complex and M'Charga formations, seven other leads have been already identified in this 5,000 sqkm permit and an infill seismic campaign of about 200 km is planned to start in a few months."

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