Mediterranean Oil & Gas reports healthy production results

Mediterranean Oil & Gas (MOG) said it was 'pleased' with its production activities in Italy last year, setting the stage for a strong 2013.

The company achieved a total net oil production of 50.68m standing cubic metres (scm) during 2012, representing an average net production of 138,470 scm per day or 872 barrels of oil equivalent per day.

Last year business was boosted after MOG was awarded the Aglavizza Production Concession onshore central Italy where it holds sold ownership in the 7 km2 concession which includes the Civita 1 discovery. It has estimated reserves of more than 1 billion cubic feet (bcf) with first gas expected in early 2015.

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In another boon to MOG, offshore restrictions were lifted at Ombrina Mare last August allowing for access to the Sicily oil field's 2P reserves of 40m barrels of oil and 6.5 bcf of gas.

MOG also said it expected to sell non-core gas assets onshore Italy to Canoel International Energy Ltd and its Italian subsidiary during the first quarter of 2013.

Dr. Bill Higgs, Chief Executive of Mediterranean Oil and Gas, said:"We were pleased with the production performance of our offshore and onshore assets in Italy during 2012, which created steady revenues for the Company.

"This production provides a solid base from which to progress our active exploration and production activities in Italy and elsewhere during 2013."

Shares jumped 2.47% to 10.38p at 11:45 Monday.

RD