Mediterranean Spuds Southern Italy Sidetrack

Mediterranean Oil & Gas PLC said that its wholly owned subsidiary, Intergas Plu srl (IGP), has successfully spudded the Cupoloni 2 DIR A sidetrack well in the Basilicata region onshore southern Italy.

The Cupoloni 2 DIR A well will target newly identified updip gas sand levels in the Cupoloni gas field on the Company's 100% owned Scanzano production concession.

Drilling is progressing well and is currently down 330 meters (300 meters vertical plus 30 meters from deviation point).

The main target is 1218 meters below sea level with an expected thickness of approximately 40 meters. There are also two secondary targets with depths of 1110 meters and 1159 meters, respectively.

The full program, including logging and completion, is expected to take approximately 24 days from spudding.

Based on the re-interpretation, MOG has updated the resources estimate for the updip portion of the Cupoloni gas field (100% basis) including the newly identified increased area of the culmination to best estimate GIIP of 292 Mscm, best estimate contingent gas resources now 160 Mscm and high estimate contingent gas resources increased to 204 Mscm.

Two additional similar untested structural culminations have also been identified close to the Cupoloni gas field area. These structures, denominated "B" and "C", are estimated to hold best estimate GIIP of 192 Mscm and 269 Mscm, respectively.