Guendalina Field to be Tied Back to Tea Field

Mediterranean Oil and Eni have decided that in the interests of a more cost effective development of the Guendalina field, the field will be tied back to another ENI owned and operated field that is 12 km to the south, named the Tea Field.

ENI, the operator of D37ACFR Permit, has advised that the environmental approval for the development has now been received.

RPS Energy, in a report dated November 9, 2005 and published in the Company's AIM Admission Document, provided for the Guendalina field a Best Estimate gas in place of 796Mscm and High Estimate gas in place of 1,467Mscm. RPS's Best Estimate contingent gas resources was 455Mscm and High Estimate 851Mscm for the Guendalina Field. All estimates are on a 100% basis.

The report also provided a production profile from Best Estimate Contingent Resources that indicated production from Guendalina would be 139.77Mscm (100% basis) in the first production year. The Company's share of this estimated production would, in the belief of the Directors, approximately double its Italian annual gas production.