Mediterranean Oil & Gas Deals with Genel on Malta Prospect

Mediterranean Oil & Gas Plc has entered into an conditional farm-out agreement with Genel Energy Plc in relation to MOG’s 100% interest in Area 4 Offshore Malta.

Genel is to acquire 75% of PECL's interest in its Area 4 (Blocks 4, 5, 6 and 7) Offshore Malta Production Sharing Contract for cash consideration of US$10 million cash payment and will carry MOG as to 100% on the first exploration well, which is planned to be drilled to a minimum depth of 2,500 metres as well as 100% carry on the second exploration well up to a maximum of US$30 million gross expenditure. (click HERE for details)

In addition to the Malta Transaction, MOG and Genel have signed an Area of Mutual Interest agreement to cooperate in acquiring exploration and production assets in the offshore basins of Libya, Tunisia and Malta for a minimum term of three years. The equity in any asset acquired within the AMI will be shared on the basis of 20% to MOG and 80% to Genel. 

Dr. Bill Higgs, Chief Executive of Mediterranean Oil and Gas, commented:

"I am very pleased that we have been able to secure such a high quality and substantial partner as Genel to progress the exploration of Area 4 Offshore Malta with the drill bit. Genel has an excellent track record in international oil and gas exploration and development. We are excited about the opportunities within the frontier

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