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Additional Information
Market: AIM
Sector: Energy
EPIC: MOG
Latest Price: 5.50p  (12.70% Ascending)
52-week High: 12.25p
52-week Low: 3.63p
Market Cap: 23.60M
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Mediterranean Oil & Gas
www.medoilgas.com
Mediterranean Oil & Gas Plc is an AIM listed Petroleum Company which has production, development and advanced exploration oil and gas assets. Mog  holds operating rights on a significant number of its assets and has positive, ongoing cashflow derived from production. MOG has experienced long standing management who are well versed and connected to the Italian regulatory process. All of MOG’s assets held in the European Union, principally on and offshore Italy and offshore Malta, except for recently acquired interest in Tunisian permit.

The Company’s short term objectives are to become a medium size oil producer from the development and exploitation of the Company's Ombrina Mare discovery. To increase substantially the Company's gas reserves and production through the development and extension of its Italian Onshore and Adriatic gas assets and to farm out and drill very substantial and mature prospects identified (3D seismic) in Offshore Malta (Block 7 Area 4)(adjoining Libyan border); and also Mature offshore Malta Blocks 4, 5 & 6.
Full Mediterranean Oil & Gas profile here
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Mediterranean Oil & Gas still in strategic alliance and funding talks

4th Mar 2011, 11:40 am Mediterranean Oil & Gas still in strategic alliance and funding talks

Mediterranean Oil & Gas (LON:MOG) said it is still in talks regarding potential strategic alliances and funding solutions in connection with the strategic review it announced in October 2010.

The company appointed CIBC World Markets to review its strategic options after it hit a snag following changes to environmental laws governing oil exploration and production off the coast of Italy, which could have an impact on the Ombrina Mare offshore field in the Adriatic.

In July 2010, the Italian Ministry of the Environment revealed plans to restrict offshore hydrocarbon activities around its coastline, In the wake of the catastophic BP (LON:BP)/Transocean oil spill in the Gulf of Mexico.

The ministry announced an outline proposed decree to amend the Italian Environmental Code, to ban drilling within 5 miles of the Italian coastline and 12 miles around designated, protected marine and coastal areas.

Possible outcomes of the review include a sale of the company or the divestment of certain assets.  The review was launched to address the combined effect of legislative changes in Italy restricting development of oil and gas fields within 5 miles of the shoreline and within 12 miles of natural reserves, and the adverse economic climate which were materially impairing the MOG's ability to raise further funds required to develop its assets, as well as to meet working capital requirements.

As part of the discussions regarding potential strategic alliances and funding solutions and considering the company's longer term financing needs, the company is in dialogue with its bank to extend the maturity of its loan facility which is due for repayment in September 2011, MOD said today.

It continues to review its operational and exploration activities with the aim of preserving its cash resources and manage its working capital whilst it seeks further finance.

“Negotiations with potential investors are on-going and the company is hopeful that one of the current opportunities will resolve the company's financial position satisfactorily.  There can be no certainty that these discussions will result in a satisfactory outcome,” MOG said.

“Regarding the decree, there has been no further clarification from the authorities as to whether fields upon which previous exploration has confirmed the existence of commercial hydrocarbon quantities are exempted thereunder.  As previously stated, the company intends to challenge any assessment that the Decree is applicable to Ombrina Mare,” it added.

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