Mediterranean Oil Completes Production Tests at Santa Caterina

Mediterranean Oil & Gas provides an update from its wholly owned Italian subsidiary, Intergas Piu (IGP), in relation to the results of the production tests on the Santa Caterina Gas Field (onshore southern Italy).

Santa Caterina 2 Dir. WELL – Production test results (Lucera Concession, MOG 13.6%)

The permit operator, Gas Plus Italiana, has advised that production tests from the Santa Caterina Gas Field have been carried out successfully. The main gas producing sands have been intersected 10 meters updip of the original location.

Subsequent to the work-over carried out in the San Caterina 2 well, 9 sand levels were completed over a depth range between 1,025 and 1,535 m/RT. All 9 intervals were tested with 7 sand levels being able to flow gas at a total flow rate of 4 MMscf/d. The reservoir pressures have been found around 1,450 psi with some of the layers still maintaining the original reservoir pressure conditions. As a start, two intervals are now ready to deliver production through the Reggente gas plant (already equipped for gas treatment and double stage compression) and to be distributed through the Italian gas pipeline network. The initial flow rate of the well (100% basis) will be about 1.4 MMscft/d and production will start next November.

The operator is using the new results to update the reserves estimate for the Santa Caterina Gas Field.

The Company's CEO, Giovanni Catalano, said: "The results of the updip sidetrack well on the Santa Caterina Gas Field have demonstrated the upside potential of seven sand levels that were not originally developed and produced in the field. These very encouraging results will certainly increase the ultimate recoverable reserves for the field and have a positive impact on the ongoing reserves enhancement program that the Company is undertaking in its Italian producing assets."