Mediterranean O&G Runs Production Tests on Ombrina Mare

The Board of Mediterranean Oil & Gas Plc announced the latest operational update on Ombrina Mare 2 vertical and horizontal appraisal wells ("OM2" and "OM2dir" respectively). The Ombrina Mare 2 is located offshore Italy, and MOG serves as the operator with 100% interest.

The production test on the OM2dir horizontal well has just been started and is progressing. Presently, the well is producing back the technical fluid (diesel oil and brine) injected to clean the hole and stimulate the reservoir. Four cubic meters of oil has already been produced in 1.5 hours during this process.

As expected, and consistent with the previous experience with Ombrina Mare 1 discovery well ("OM1"), the first indications are that the complex nature of the carbonate reservoir and fracture porosity system may require artificial stimulation either through nitrogen lifting or, as was the case with OM1, by acidification to optimize oil production rates.

The production test is expected to continue as planned over the next few days, and a further update will be given in due course.

OM2dir was started at 1815m depth inside the lower Pliocene clastics and reached the Oligo-Miocene main target carbonate formation 270m east of the OM2 appraisal vertical hole. It was drilled horizontally by the George H. Galloway inside the Oligo-Miocene reservoir for a distance of 370m southeast from the OM2 location.

Significant oil shows, with frequent sections of abundant oil bleeding, were recorded on cuttings and shale shakers along the entire section of the horizontal well drilled inside the Oligo-Miocene reservoir. The oil shows were associated with good yellow fluorescence, and drilling total gas of 1 to 4%.

The results of OM2dir followed the successful completion of the vertical hole to the target depth of 2310m. The vertical hole confirmed the material presence of oil by cores and logs from inside the main target carbonate formation and confirmed by logs the material presence of gas in the Pliocene gas sands.

The OM2 wells have now appraised the Ombrina Mare structure to the southeast with the horizontal well extending to a distance of approximately 1.7km east of the Ombrina Mare 1 ("OM1") discovery well and 640m east of OM2 vertical well.

"Over the next few days we will continue with our production testing of OM2dir and we hope to optimize production rates through a similar methodology applied to OM1," Sergio Morandi, the Company's CEO, stated.

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