MOG Secures Rigs for Ombrina Mare, Monte Grosse Wells

The rig is presently operating in the Adriatic Sea under contract with Eni, and MOG has successfully negotiated a drilling window for the Ombrina Mare 2 well. The jack-up is expected to be mobilized end of 2007 for drilling to commence in January 2008.

The Ombrina Mare oil field is located seven kilometers from the Italian Adriatic coast in approximately 20 meters of water. The Ombrina Mare field and two satellite structures are entirely covered by permit BR 269GC, which is 100% owned and operated by MOG's wholly owned subsidiary Intergas Piu (IGP).

The Ombrina Mare 1 discovery well resulted in oil production of 428stb/d during extended testing. MOG anticipates, based on its field development plan for best estimate contingent resources, plateau rates of approximately 8,200stb/d. High-estimate contingent resources from the Ombrina Mare field would provide estimated peak production of 13,650 stb/d.

MOG has carried out an integrated geological and geophysical interpretation of the Ombrina Mare area from 3D seismic data and the results of the discovery well. MOG and its technical consultant RPS have prepared estimates of the contingent resources and oil in place in the two oil-bearing levels within the Mio-Oligocene and Cretaceous carbonate reservoirs. Best estimate stock tank oil initially in place (STOIIP) amounts to 165.9 Million stock tank barrels (MMstb) and best-estimate contingent resources to 27.5 MMstb.

Ombrina Mare Field – Volumetric Appraisal

The Ombrina Mare 2 appraisal well has been designed to test vertically the two main reservoirs of Mio-Oligocene and Cretaceous age and then penetrate horizontally the main Mio-Oligocene carbonate reservoir to prove up a multifold increase in production rates. It is envisaged that the appraisal well will ultimately be utilized as a development well.

MOG is progressing with obtaining the necessary governmental approvals for the Ombrina Mare 2 well and is on schedule for the proposed spud date in the agreed time window. MOG has already procured the wellhead and majority of consumable materials needed for the appraisal/development well.

Serra San Bernardo exploration permit (Operator - MOG: JV Partners - MOG (23%), Eni (53%), TotalFina Elf (11%), SRN (13%)

MOG's board also has executed an agreement for an onshore rig to drill the Monte Grosso oil prospect.

MOG, as the operator of the permit, has entered into a services agreement with Eni on behalf of the J/V partners, to drill an exploration well on the Monte Grosso prospect in the Serra San Bernardo permit. The Monte Grosso well is expected to spud next quarter.

IGP owns 22.89% of the Serra San Bernardo exploration permit and is the operator of the exploration permit on behalf of its joint venture partners, which include Eni and Total.

The Monte Grosso prospect is located on a similar trend to the Italian Southern Apennines major producing oil fields - Monte Alpi, which is Eni-operated and produces approximately 95,000 stb/d, and Tempa Rossa, which is currently under development by Total, as well as the Cerro Falcone discovery.

MOG and its joint venture partners have agreed a drilling location and a program to drill the Monte Grosso prospect, which has best-estimate STOIIP of 1,250 MMstb (100% basis) and best estimate prospective resources of 280 MMstb (100% basis).

MOG has signed a services agreement with Eni, which will include the use of one of Eni's rigs to drill the prospect. The upgrade of the well staging area and material procurement are well under way.

Giovanni Catalano, CEO of MOG, said:

"We are delighted with the important advancement of both the Ombrina Mare and Monte Grosso wells resulting from our strategic cooperation agreement with Eni on a Service Agreement to drill Monte Grosso and to provide a jack up rig to appraise the Ombrina Mare oil and gas field.

"The economic potential of the Ombrina Mare oil and gas field has made its appraisal and development a high priority. Today's announcement that the company has secured a jack-up rig and drilling window for the appraisal/development well on the Ombrina Mare oil and gas field and signed an agreement for an exploration well on the giant Monte Grosso prospect are major milestones on our path to achieving the Mediterranean Oil & Gas Plc's goal of being a significant independent oil and gas producer. "