Mediterranean Oil Encounters Gas at Ombrina Mare 2

Mediterranean Oil & Gas reports that the Ombrina Mare 2 ("OM2") appraisal well has encountered significant gas shows in the secondary target zone, the middle-upper Pliocene gas sands complex.

The middle-upper Pliocene gas sands complex sequence is constituted by prevalent shales alternated with levels of sands. Significant gas shows from 5 to 12 % (C1) have been recorded during drilling corresponding with the sand levels between 1500 to 1800m (in Ombrina Mare 1 ("OM1"), gas shows encountered whilst drilling were between approximately 1 and 2%).

The gas shows are considered particularly material in the context that the drilling mud weight in this area has a specific gravity of 1.21 . These shows are associated with seismic amplitude anomalies visible on the seismic image and also have a good correlation with the main gas bearing sand levels of the discovery well OM1, where they produced 150,000 to 190,000 scm/day (5.3 to 6.7 MMcf/d) of gas (99% (C1) methane).

The OM2 appraisal well is proceeding satisfactorily in line with our geological projection. The well had reached a depth of 1,900m as of April 23, 2008 and is continuing through the secondary target zone. The well is being drilled by the George H Galloway jackup.

The forecast drilling program for the next week is:

  • drill to the next casing point at 2107m, just above the carbonate appraisal oil target
  • execute a complete run of logs along the Pliocene gas sands complex in order to evaluate further the encountered gas shows
  • casing set up and cementing
  • start drilling the carbonate sequence to TD to verify and to quantify the up-dip of carbonate levels which were found to be oil bearing in OM1,where they produced 400 bbls/day of 18 degree API oil

Sergio Morandi, the Company's CEO, stated:
"The gas shows encountered in the Pliocene clastic complex whilst drilling OM2 indicate the potential to produce significant gas volumes from the secondary target gas sands. We will be running logs over the gas bearing section during the next few days to evaluate these gas shows further and decide the appropriate test program on the gas sand levels. Once the testing is carried out we will be in a position to better estimate the gas volumes and economic potential of the gas sands (which have already produced gas from OM1). Given the already certified 5MMbbls of P1 & P2 oil reserves from OM1, a significant gas discovery alone in OM2 should enable the Company to apply for a production concession and initiate the development phas.

OM2, the first offshore well operated in Italian waters by a junior oil & gas company for more than 25 years, has so far performed in line with our technical expectations."

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