Mediterranean Oil in Pact to Acquire 25% Stake in Medjerda Block

Mediterranean Oil has reached an agreement with Range Petroleum on the acquisition of a 25% stake in the Medjerda block located in Northern Tunisia.

The agreement to purchase a 25% interest in the Medjerda Block is now unconditional except for receipt of formal ETAP (the Tunisian petroleum authority) consent to the transfer.

Range says that on behalf of the owners of the Medjerda Block they have executed a contract with Compagnie Tunisienne de Forage for CTF Rig 6 to drill the TEB-1 well in the Teboursouk Prospect. The well is expected by the Directors of the Company to spud in the fourth quarter of 2006.

The Teboursouk Prospect is located in the Domes zone in the southern part of the Medjerda Block. The Company has been advised by Carthago Oil Company that the Teboursouk Prospect P50 reserves are estimated to be 80 MMbbls and 27 MMbbls for the Aptian Sandstones and Carbonate Complex objectives respectively. The Company is presently working to verify these estimates in accordance with the SPE standard and will update the market accordingly as soon as practicable.