MOG Doubles Ombrina Mare Field's 2P Oil Reserves

Mediterranean Oil & Gas (MOG) confirmed a significant increase in 2P oil reserves in the Oligo-Miocene carbonate reservoir of the Ombrina Mare field to 40 MMbbls. The reserves were certified by the independent reservoir engineers, Studio Ingegneria Mineraria ("SIM"). The new certification represents a 100% increase relative to the June 2008 2P oil reserve certification by SIM (20 MMbbls).

Sergio Morandi, the Company's CEO, stated, "We are extremely pleased with the updated certification of the proved and probable reserves at the Ombrina Mare oil and gas field. The increase in proved reserves to 12 MMbbls and 2P reserves to 40 MMbbls doubles the initial analysis and confirms the field's critical mass. The new oil reserve numbers establish the Ombrina Mare field as a significant European oil project and further confirm MOG's technical ability to operate and progress this important project.

"Our discussions with financial institutions continue, and we aim shortly to select a banking advisor to assist with the analysis of financing options. Further, MOG is progressing activities to secure final approval of the field development plan on the current timetable, which foresees the grant of the production concession by the end of this year."

The Company is continuing with further technical studies of the Ombrina Mare field. The reprocessing and inversion of the Ombrina Mare 3D seismic is being conducted, to increase the imaging of both the oil and gas reservoirs, as well as the accuracy of the seismic interpretation and the conversion in depth. In addition, formation evaluation, bio-stratigraphic and facies analysis are also being progressed to further refine the knowledge of the reservoir.

In October 2008, MOG also announced that 6.5 Bcf of recoverable 2P gas reserves , trapped in the Pliocene clastic sequence above the oil field, had been certified by SIM. This gas reserve certification has not been reviewed by SIM in the current report. Once the ongoing 3D seismic reprocessing, inversion, seismo-stratigraphic and sedimentological studies are completed, the Company will notify the market of any revised certification of the gas reserves.

The application for the production concession to permit development of the Ombrina Mare oil and gas field was submitted on December 17, 2008. It covers an offshore area of approximately 100 in the central Adriatic Sea.