Mediterranean Oil & Gas sells stake in Phoenicia Energy

AIM-listed Mediterranean Oil & Gas (MOG) has sold its 75 per cent stake in its wholly owned subsidiary Phoenicia Energy Company (PECL) to Genel Energy.

AIM-listed Mediterranean Oil & Gas (MOG) has sold its 75 per cent stake in its wholly owned subsidiary Phoenicia Energy Company (PECL) to Genel Energy.

PECL owns the rights to exploration activity in Malta Offshore Area 4.

Under the terms of the sale agreement Genel has acquired MOG's 75% interest for an immediate cash payment of $10m and 100% carry of the cost for the first exploration well, Hagar Qim 1, which is planned to be drilled to a minimum depth of 2,500 metres.

Genel will also have 100% carry of the cost for the second exploration well up to a maximum of $30m gross expenditure.

At MOG's option, should the costs of the second well exceed $30m, Genel will provide a financing arrangement to fund MOG's 25% share of any additional expenditure, at an interest rate equivalent to three month LIBOR plus 400 bps.

Dr. Bill Higgs, the Chief Executive Officer of Mediterranean Oil & Gas, said: "We are very pleased to have completed this transaction with Genel. This enables PECL to progress with the preparation for the drilling of the MOG operated Hagar Qim 1 exploration well offshore Malta, planned for late 2013."

MOG's share price was up 3.57% to 10.88p at 11:58 on Friday.

MF

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021