Mediteranean Sells 13 Italian Gas Assets

Canadian junior Canoel International Energy (CIL) will take a stake in 13 Italian gas fields following an agreement with Mediterranean Oil & Gas (MOG) to purchase the stakes.

MOG announced the sale on its website today that CIL would take its entire stakes in 13 non-core gas assets, including some it currently acts as the operator for. CIL wil take a stake in seven MOG-operated concessions: Masseria Grottavecchia (20 per cent stake), San Teodoro (100 per cent), Torrente Cigno (45 per cent), Misano Adriatico (100 per cent), Sant'Andrea (40 per cent), Masseria Petrilli (50 per cent) and Montalbano (57.15 per cent).

CIL will also take MOG's stakes in three non-operated onshore gas production concessions: Masseria Acquasalsa (8.8 per cent), Lucera (13.6 per cent) and San Mauro (18 per cent). Finally, it will also gain access to three exploration permit applications: Serra dei Gatti (100 per cent), Villa Carbone (50 per cent) and Colle dei Nidi (25 per cent).

CEO of MOG, Dr. Bill Higgs said that the divestment of the assets was part of the company's plan to focus its attention on valuable assets.

"The divestment of these non-core assets is consistent with our stated strategy to grow the company by investing in exploration, development and production opportunities that can add material resources and reserves to the company's portfolio," he said. "Completion of the transaction will also free up our team to focus on the value-adding opportunities that remain within our portfolio."

Under the terms of the sales and purchase agreement between the two companies, Canoel will pay a consideration of €100 for the acquisition. CIL will take responsibility for all future plugging, abandonment and site restoration on each of the assets. However, MOG has also agreed to pay  €1.25 million to CIL as a partial contribution these future operations. 

The deal is subject to the approval of the Italian Ministry for Economic Development as well as the Toronto Stock Exchange.