MOG 1Q Production Down amid Production Challenges

Italy-focused Mediterranean Oil & Gas (MOG) saw its net production fall to 299 barrels of oil equivalent per day during the first quarter of 2014 from 700 boepd in 1Q 2013 as work continues to reverse production challenges at its assets.

The Guendalina field achieved net gas production equivalent to 226 boepd during the quarter, with operating conditions at well GUE 3ss stabilizing after a well intervention that was conducted in January. MOG said the operator is currently reviewing production data to identify optimal operating parameters.

MOG's onshore Italy gas fields achieved net production of 73 boepd during the quarter. In February a coiled tubing operation was undertaken on the Vigna Nocelli 1 well in an attempt to restore production, but the operation failed due to mechanical obstructions in the well. MOG said that alternative strategies to restore production from the field are currently being developed.

Meanwhile, MOG said that it has completed the required work to finalize Autorizzazione Integrata Ambientale (an Integrated Environmental Authorization or AIA) documentation for its Ombrina Mare field development.

The Ombrina Mare field has an estimated 40 million barrels of 2P oil reserves along with 6.5 billion cubic feet of 2P gas reserves, according to MOG, but the firm has had to face obstacles developing the field ever since the Italian Parliament brought Decree No. 128/10 into force in August 2010, which meant an effective ban on several offshore exploration and production activities. A new decree (No. 83/12) was introduced in June last year that exempted certain projects from the ban, including applications for production concessions that were under review at the time the original decree came into force.

MOG said it will provide all necessary technical input requested by the Ministry of the Environment and Protection of Land and Sea (MEPLS) to expedite the approval of the AIA and the Environmental Impact Assessment, so the company can move forward with the award of a production concession for Ombrina Mare.

MOG added that work offshore Malta continues, with the Dolphin Geophysical vessel completed the acquisition of 1,060 miles of 2D seismic in early April over Area 3, Blocks 1, 2 and 3. Also, the company has been informed by Phoenicia Energy Company that the Noble Paul Romano rig (mid-water semisub) is currently undergoing final inspection and certification tests in Valletta Harbour before being mobilized to the Hagar Qim well location in Block 7 of Area 4 to begin drilling in May.


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