Mediterranean Oil Takes Operatorship of the Montemarciano Permit

Mediterranean Oil & Gas has negotiated with SARP s.r.l. to farm-in to the Montemarciano exploration permit. MOG will assume the operatorship and earn 50% equity in the permit. The exploration permit was recently awarded 100% to SARP and is located onshore in central Italy close to the Company's Agugliano exploration permit. The Company will earn its interest by carrying SARP for the cost of the first well in the block.

One ready to drill prospect has already been identified in the Montemarciano permit. The well will target shallow (expected target depth of 1,000 meters) gas methane within Pliocene sands with best estimate prospective resources of 2.6 Bcf (high estimate 3.5 Bcf). Drilling the Montemarciano well will be part of the forthcoming drilling string that MOG is planning for early 2007.

The farm-in is subject to Ministerial approval.