medOil Posts Six-month Loss
The Mediterranean-focused explorer medOil plc on Wednesday announced its interim results for the six months to 31 March 2007.
--Completion of the 3D seismic survey at the Company's Louza Permit in Tunisia; --Aggregate Oil-in-Place estimates within the 3D seismic survey area at Louza upgraded to 1,483 million barrels of oil in place ("MMbo") (October 2005: 1,297 MMbo); --Application for three permits offshore Spain have been accepted by the Ministry of Industry, Tourism and Commerce, and the Ministry is currently awaiting comments from various associated government agencies; --Application for two permits offshore Sicily (adjacent to the Vega oil field) have been accepted by the Ministry of Industry and subject to our environmental impact study; --Existing 2D seismic data sets over the Joni 5 permit in Albania received from the Albanian authorities with the data quality generally good to excellent; and --Loss of £233,079 for the six months ending 31 March 2007.
Commenting on the results medOil's Chairman, John Lander, stated: "The period to 31 March 2007 was a busy six months for the Company. The main focus has been completing the 3D seismic survey at the Company's Louza Permit in Tunisia while continuing to identify and pursue new opportunities in the Mediterranean region.
"In comparison with the October 2005 Competent Persons' Report by Merlin Energy, the 3D work program has facilitated an upward revision of the potential aggregate oil reserves (prospective resources) in two of the four identified prospects adjacent to the M'Sela-1 oil discovery. We are actively seeking potential farm-in partners to participate in a drilling program planned to commence in 2008, subject to jack-up rig availability."
Statement by Non-Executive Chairman John Lander:
The period to 31 March 2007 was a busy six months for the Company. The main focus has been completing the 3D seismic survey at the Company's Louza Permit in Tunisia while continuing to identify and pursue new opportunities in the Mediterranean region.
The results show a loss of £233,079 for the six month period to 31 March 2007. This reflects continuing Company building activities.
No dividend is proposed for the period.
Tunisia – Louza Permit
A 600 sq km 3D seismic survey covering the southern part of our Louza prospecting permit, offshore Tunisia, was acquired between August and October 2006. Processing of this large dataset is now complete, and medOil using a 'fast track' data volume carried out an integrated geological and geophysical interpretation of the area. medOil and its technical consultant Merlin Energy Resources Limited ("Merlin Energy") have prepared estimates of the prospective1 and contingent2 oil-in-place volumes. Initial findings have been very encouraging.
The initial 3D interpretation based on a 'fast track' processed volume confirms the earlier overall structural configuration and gross rock volume interpretation of the M'Sela-1 oil discovery as it pertains to the main volcanic reservoir. It is anticipated that contingent initial oil-in-place estimates for the M'Sela accumulation will be close to the previous estimates. We intend, however, to use the final high-resolution 3D data volume to help elucidate the regional fracture patterns in the area, and by combining this with further evaluation of the M'sela-1 well data we hope to gain a better understanding of how this unusual reservoir might respond to production. These data will be critical in the design of any potential appraisal well. The 3-D data has also highlighted the stratigraphic and structural potential associated with the deeper oil bearing Isis reservoir in M'Sela-1, notably as it relates to its potential in the nearby M'Sela West prospects.
In comparison with the October 2005 Competent Persons' Report by Merlin Energy, the 3D work program has facilitated an upward revision of the potential aggregate oil reserves (prospective resources) in two of the other four identified prospects adjacent to M'Sela.
We are actively seeking potential farm-in partners to participate in a drilling program planned to commence in 2008, subject to jack-up rig availability.
Other Exploration opportunities
Our application for two permits offshore Sicily (adjacent to the Vega oil field) received approval from the Ministry of Industry in December 2006, and the final award will be subject to acceptance of our environmental reports which were submitted to the Italian Government on 4 April 2007. We have commenced gathering technical data on these permits.
The existing 2D seismic data sets over the Joni 5 permit have been received from the Albanian authorities and the data quality is generally good to excellent. The data is now with Merlin Energy ready for a detailed interpretation. An initial overview of the data has confirmed the existence of a number of potentially exciting geological play types as reported in our 2006 Report and Accounts.
The Company has identified and is pursuing additional high potential exploration targets in the Mediterranean area.
We are confident that medOil has the potential to add significant value for its shareholders in the short to medium term.
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