Mediterranean Oil and Gas Plc to Float on AIM
Friday, November 11, 2005
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Mediterranean Oil and Gas Plc (MOG), the London-based oil exploration and gas production company with a portfolio of assets in countries within the European Union, namely Italy and Malta, announces today that it is floating on AIM on 16th November 2005. The Group has recently raised 11.7 million (gross of expenses) in a placing of 11.7 million new Ordinary Shares at a price of 1.00 (the Placing). WH Ireland Limited is acting as Nominated Adviser and Broker to the Company. On Admission, MOG will have a market capitalisation of approximately 33.3 million.

Portfolio of Assets

The Groups principal assets are as follows:

The Group owns 100 per cent. of the Ombrina Mare Concession, located offshore Italy in approximately 20m of water. The permit contains the Ombrina Mare oil discovery, which has been estimated by the Groups Competent Person, RPS Energy, to hold on a Best Estimate basis some 19.5 million barrels (Mbbl) Net Contingent Resources; 89 Mbbl Stock Tank Oil Initially in Place (STOIIP) - both on 100% basis. Two satellite oil prospects and three gas leads are to be evaluated by the Company to ascertain whether there is a potential to develop those prospects in conjunction with any development of the main Ombrina Mare field.

The Group holds the benefit of an Exploration Study Agreement over blocks 4, 5, 6, and 7 in Offshore Malta Area 4 on the Mediterranean Pelagian Shelf. Area 4 lies to the south of Malta abutting the boundary with the Libyan offshore area 44. A small part of the total area has been subjected to 3D seismic and three prospects have been identified in that area. RPS Energy has estimated, for the three identified prospects in Block 7 which have been matured by 3D seismic, to hold on a Best Estimate basis a total of 218.2 Mbbl Net Prospective Oil Resources; 648.1 Mbbl STOIIP - both on 100% basis un-risked. The Board believes that the area is prospective and wishes to both mature the identified prospects and carry out more regional seismic testing within its permits in order to attempt to identify further prospects within the Groups concession.

The Group holds 20 per cent. of the Serra San Bernardo permit in joint venture with ENI S.p.A. (ENI) and Total Italia S.p.A. amongst others. The Company, as operator under the joint venture, proposes to mature the permit in order to drill the Monte Grosso prospect located within it. RPS Energy has estimated the Monte Grosso prospect to hold on a Best Estimate basis a total of 120.7 Mbbl Prospective Oil Resources; 710.7 Mbbl STOIIP - both on 100% basis un-risked.

The Group holds 20 per cent of the Guendalina gas discovery offshore Adriatic. RPS Energy has estimated this prospect to hold on a Best Estimate basis a total of 455 million standard cubic meters (Mscm) Contingent Gas Resources; 796 Mscm Gas Initially in Place - both on 100% basis. This interest is operated by ENI.
The Group is one of a relatively small number of Italian oil and gas producers and holds interests in a variety of granted production concessions. The Group currently owns interests in: eighteen production concessions, for nine of which its is the operator; seven exploration concessions, for five of which it is the operator; and four permit applications for two of which it will act as operator in Italy. The Group will endeavour through investment in further exploration and development to increase production from identified reserves in these concessions.

Current Financial Status
MOG is already a significant player in gas production in Italy. The portfolio of assets that the Group has established has been generating revenue for a number of years.
The Directors believe that the Group, with the proceeds of the Placing, is well positioned to execute its exploration and development programme and assist its further growth and development. The Directors consider that together, with the funds currently available to the Company, having its Ordinary Shares traded on AIM and the increased profile associated with being a publicly quoted company will significantly assist in the expansion of the Groups operations and the development of its assets.

Group Strategy
The proceeds of the Placing will be used to help effect the Boards strategy, which is to become a medium sized oil and gas production company. The Board intends to effect its strategy by:

expediting the appraisal, development and exploitation of oil and gas discoveries and prospects within the Ombrina Mare Concession;

advancing the drilling of Offshore Malta Block 7 which comprises three mature prospects and progress the very large Italian Monte Grosso prospect;

expanding the Groups production and reserves in Italy in order to increase earnings and cash flow; and
the simultaneous exploration and development of the Groups current concessions, thereby spreading the risk across a number of projects.

Management Team
Mediterranean Oil and Gas benefits from a strong Board and senior management team; it has extensive experience of oil exploration and development, as well as project management and resource financing. David Lenigas (non-executive Chairman) has over twenty years experience in the gold, diamond, coal, oil and gas and base metals industries. He has extensive experience operating in the AIM environment and is currently the joint managing director of Asia Energy Plc and a director of BDI Mining Corp, Braemore Resources Plc and River Diamonds Plc, all of which are quoted on AIM.

The multilingual Giovanni Catalano (Chief Executive Officer) took up his position in June 2005. He has had over twenty-five years in the upstream oil and gas industry with the last position held in Woodside Energy Pty Ltd, Perth, Western Australia as Far East Business Development Manager. In addition, Mr Catalano played an instrumental role in growing Woodsides overseas business with world-wide new ventures and exploration/development projects, with particular emphasis on the Italian, African and Asian regions. Prior to Woodside (7 years) he was with AGIP (9 years) and LASMO International (11 years). He is a former Director of the Woodside Energy UK and AGIP Mauritania BV companies and former Chairman of Woodside Energias SA in Spain.

Anthony (Tony) Trevisan (Executive Director) has, over twenty years, played major roles in a large number of corporate transactions involving financing, mergers and acquisitions, the restructuring of industrial, petroleum and mineral resources based public companies. He has participated in the establishment, from start up, of substantial operating businesses and been responsible for public offerings and the floating of companies on the Australian and other international Exchanges. Mr Trevisan has held senior executive positions in listed public companies, including petroleum, mining, industrial and high technology interests such as Arabex Petroleum (Rubiales petroleum discovery), Callina NL (petroleum workover project in the Russia, Komi Oil Field), Trident Petroleum (Joint Venture with Conoco - now Conoco Phillips in Papua New Guinea) and Aqua Vital (Australia) Ltd (now owned by Coca Cola), amongst others.

MOGs other current Directors are Salvatore Russo, Peter Clutterbuck and Patrick Collins (all non-executive). Salvatore has held senior positions on the Boards of some of Italys largest corporations including chairman and CEO Saipem S.p.A., chairman and CEO of both Snam S.p.A. and Snam Rete Gas S.p.A. He is currently chairman and CEO EnerTAD S.p.A. and has served on the Boards of a number of companies including Agip, EniChem and Italgas.

Peter has broad experience in exploration, development and production in the USA, North Sea, former Soviet Union (FSU), Latin America, Middle East, Africa and Asia. He began his career with BP Group, and has subsequently managed independent oil companies for over 20 years.

Patrick holds an MBA from New York Universitys Stern School of Business and was formerly a Restructuring Investment Banking Analyst at the New York based insolvency restructuring firm of Zolfo, Cooper & Co. After stints with Morgan Stanley and Merrill Lynch in New York, in 2000 he moved to London to Head Merrill Lynchs European Distressed Debt Trading team. Mr. Collins joined Mizuho International plc to establish and run the Global Special Situations Group, where he a non-executive director.

Giovanni Catalano, Chief Executive Officer, Mediterranean Oil and Gas Plc, said: MOG will be something of a rarity on AIM, as it is already a producing, cash-generating gas production company. The team believes that our flotation on AIM will fundamentally improve the visibility of the Group and allow it to access the necessary funding to exploit its substantial existing and potential oil reserves in Italy and Malta. We look forward to sharing our success with our shareholders.

That's another one I missed while Concentrating On Other Things.

Still, I have enough faith in VOG/BLR/NOP, so am hoping I won't have cause to regret. And like I say, you can't hold 'em all. Will keep my eyes open though.

HLYEO - got another for you: EOG, but buy the warrants not the shares. Could easily hit SP 100p by expiry date, which would give almost an eight-bagger. More info on the thread, PDYOR, but I think this could prove to be quite a good bet.

thanks, soul traders.

HLYEO - am I missing something subtle? In doing some calculations to assess the value of some of MOG's gas prospects, items like 35Mscm of gas at S. Caterina 2 only seem to be worth around $6 or 7 million (I'm assuming $6 per thousand cubic feet of gas, and around 34 cu ft of gas per Standard cubic metre). MOG's 13% share is worth less than $1 million on that basis!

In some cases it doesn't seem like much to get excited about, although I agree that MOG has good prospects if the Malta and Tunisia stuff comes good, plus the fact of near-term increases in cash generation is always a confidence booster.

What do you think?

RESOURCE UPDATE

Mediterranean Oil & Gas Plc
10 May 2006

MEDITERRANEAN OIL & GAS PLC
('the Company' or 'MOG')



10 May 2006



UPDATE OF PROSPECTIVE RESOURCES AND OIL IN PLACE ON MALTA PROSPECTS


The Board of Mediterranean Oil & Gas Plc (AIM: MOG) is pleased to announce today
a further update to the resource estimates for the Company's Maltese acreage.



RPS, the Company's Competent Person, has provided an updated report on the
exploration potential of the Company's Area 4 ground. In their report, RPS have
identified an additional six prospects based upon interpretation of the regional
seismic grid.



RPS' updated study included a review of the volumetric estimation of the
prospective resources and oil in place on both the prospects identified in the
Competent Person's Report which was contained within the Company's Admission
Document and new prospects within Blocks 4, 5, 6 and 7.



Volumetric Appraisal of Prospect Inventory Using a Metlaoui Analogue


STOIIP (MMbbl) Prospective Resources (MMbbl)
Low (P90) Best (P50) High (P10) Low (P90) Best (P50) High (P10)
Hagar Qim 48 241 724 11 58 203
Skorba 32 71 148 7 18 43



Volumetric Appraisal of Tarxien Prospect Using an Intisar Analogue


STOIIP (MMbbl) Prospective Resources (MMbbl)
Low (P10) Best (P50) High (P10) Low (P90) Best (P50) High (P10)
Tarxien 153 295 499 57 115 207



The more significant of the new prospects fall outside of the area covered by
3-D seismic. Consequently further work needs to be done to assess these
prospects and in particular to establish the degree of fault seal risk and the
potential access to the main predicted mature kitchen. A volumetric appraisal
of the new prospects was prepared by RPS utilising a Metlaoui analogue.



New Prospects - Volumetric Appraisal Using a Metlaoui Analogue


Prospect STOIIP (MMbbl) Prospective Resources (MMbbl)
Low (P90) Best (P50) High (P10) Low (P90) Best (P50) High (P10)
Luzzu 287 2420 6860 66 605 1980
A 330 756 1560 74 197 470
B 113 297 671 26 77 200
C 390 1630 3890 93 405 1111
D 3 9 32 1 2 9
E 14 26 48 2 7 14
TOTAL FOR NEW 1,137 5,138 13,061 262 1,293 3,784
PROSPECTS



Two smaller prospects (denominated 'D' and 'E') lie within the area that has
been subjected to 3-D seismic. The remaining new prospects (Luzzu, A, B and C)
are outside of the 3-D seismic area and consist of large wedge closure between
intersecting faults in the case of the Luzzu prospect and three narrow horst
structures in the case of prospects A, B and C. In addition, 2 wedge closures
similar to the Luzzu prospect are visible close to the north west and south west
corners of a 3-D survey area but are less well defined and smaller, hence they
have been considered leads rather than prospects and have not presently been
evaluated.



An additional academic regional study prepared for the Company supports the
presence of a working hydrocarbon system in the region and is consistent with
the specific findings in the work performed by RPS. This regional study
concluded there are favourable conditions for hydrocarbon accumulation within
the Company's concession. The most attractive zone is localised within the
Melita - Medina Graben which separates the Medina Bank from the northern
extension of the Melita Bank. The Stratigraphic and structural setting of the
Graben makes it particularly prospective.



QUALIFIED PERSON



Giovanni Catalano (a Director of the Company) has had over twenty-five years in
the upstream oil and gas industry with the last position held in Woodside Energy
Pty Ltd, Perth, Western Australia as Business Development Manager - Far East.
Prior to Woodside (seven years), Mr Catalano was with AGIP (nine years) and
LASMO International (eleven years). He is a former Director of Woodside Energy
UK and AGIP Mauritania BV companies and former Chairman of Woodside Energias SA
in Spain. He has compiled, read and approved the technical disclosure in this
regulatory announcement. The RPS report and the technical disclosure in this
announcement complies with the SPE/WPC standard.



GLOSSARY


BBstb Billion stock tank barrels
MMstb Million stock tank barrels
scm/Mscm Standard cubic meters per Million stock tank cubic meters
SPE/WPC Society of Petroleum Engineers/World Petroleum Congress
STOIIP stock tank oil initially in place
scm/d Standard cubic meters per day



ENDS



Enquiries:


Mediterranean Oil & Gas Plc


Giovanni Catalano, CEO/Managing Director Tel: +39 06 474 5756
Tony Trevisan, Executive Director Tel: +44 790 162 4290
WH Ireland Limited Tel: +44 (0) 20 7220 1666

Philip Haydn-Salter/Paul Dudley
Parkgreen Communications Tel: +44 (0) 20 7493 3713
Justine Howarth/Victoria Thomas
















This information is provided by RNS
The company news service from the London Stock Exchange

HLYEO, if this is all true and it's not a big wind-up a la Regal Petroleum, then this could be as big as Cairn Energy. Excellent tip - thanks!

BB123, thanks for the RNS post. That certainly answered my previous question!

Wish I had some more spare cash - may have to sell the furniture to raise some, but this is definitely worth a go!

lol...u r welcome, soultraders...I suggest u might have to sell your wife too

I will marry one specially for the purpose, HLYeo.

Good one, soultraders... :-)

Morning all. Are there any early risers on this thread?

The reserves upgrade comes as very welcome news - nice to have it broken down in the RNS, but the new figure of 3,784 BBstb was hinted at in the RNS of 28th April, which also mentioned a figure just over 3 Billion.

IMO however, this ought to have a lot further to go. Any other opinions out there?

Sorry, HLyeo, didn't see you there!

It is it safe to assume that what was released on 28th April only had initial "wake-up" value for a few investors who (unlike me) were really reading the figures carefully?

Yesterday's release is the one with the juicy detail. I'm thinking 6 a share ought to be well within reach - or am I dreaming?

The best estimate according to my memory is similar to that of VOG, who published a best estimate of 1.1 Billion barrels of oil Equivalent for its West Medvezhye prospect. VOG is now worth around 250 million. It also has a bit of production going so could be compared with MOG, although if anything MOG's portfolio is now looking bigger than VOG's. So the question, do we think that MOG could be worth (250 mil / 33.3 mil shares) 750p a share, ideally within a few weeks/months as ws the case with VOG around the New Year?

I'm getting ready to make a large swing into this one - which I think is probably the best policy - bet the house and come away with an extension! (or turn one wife into two if you're HLYeo, but that might mean you wind up with two mothers-in-law - scary!!).

All IMO, DYOR, CU in the PUB.

ST.

Got in this morning with a small initial trade at 244p - I'm slightly disappointed that so far the SP hasn't sprinted away. It seems as if MOG has been a little bit neglected so far and it may still be overlooked.

My trade took a while to be executed, so there may still be a bottleneck of orders at the MM's. The indicative spread of 8p and the fact that this co is already heavily held by institutions and other big boys* suggests that the MM's may be having trouble attaining the liquidity necessary to fill orders. It's all been buy side so far this morning. Interesting.

But I'm not quite willing to bet the entire house yet.

*My broker's figures for major shareholders are clearly not quite up to date - they actually show 102% of the 33.3 million shares in issue, having overlooked, for example, the fact that Mizuho cleared out of its 3.5 million holding at the end of Feb/beginning of March (doh!), but it proves the point that this one is already well-held.

It would be a pity if the potential of this one got stymied by liquidity problems.
Caveat Emptor.

Here's some consolation if it does take a while to come good though:

(from FT.com)

>> The Energy Information Administrations latest projections suggest that prospects for an improvement in global petroleum supply and demand balance were fading. The EIA warned on Tuesday that steady and continued growth in global oil demand combined with modest increases in capacity left little room to raise production in the event of geopolitical instability.

Oil prices should average $68 a barrel until at least the end of 2007, the US Department of Energy said in its latest monthly report. The estimates were raised from the last monthly report, in which the Department of Energy forecast average oil prices of $65 per barrel this year and $61 for 2007. <<

This needs more research, but the site I needed is currently down ....... In many ways, the company looks interetsing but my guess is that

1) It is extremely illiquid for there were only 127,000 shares traded on Friday, though the price still dropped 6% (11p) and the spread seems to be 10p.

2) The company only came to market 6 months ago, yet the price has risen 130% ..... Unless the founders were badly advised and the issue price was undervalued, then there is a distinct or strong possibility that the price has merely followed all the recent hype of oilies in general.

3) MOG cannot be compared in any way to VOG (sorry soul*).... It just isn't in the same league in operations, discoveries or, as far as I can see, prospects, albeit that VOG is operating in potential bandit country.

In conclusion and subject to the result that any further research may reveal, I would not be at all surprised to see a significant correction in the sp as many oilies are brought back to earth.

No offence taken, Cynic. You're right about illiquidity, but I think that long-term this has a lot of potential. Current production, albeit small, plus a broad portfolio mean this one ought to come good in the end.

Taking a hammering this morning though!!

confess i have seen far riskier bets than this one .... in fact, nms is greater than i thought at 5000, so i shall consider what next

Useful article on Oilbarrel today, by the way, summarising MOG's portfolio and prospects.

HERE

Thanks Soul* ...... Nice to see a new oilie with some proper producing assets ..... You have tempted me in there and await result of my offer to MMs!#

By the way, am I going to tempt you to join us in London for a get-together? ..... Prob 9th June - see thread

Cynic, that is very hospitable of you and downright jolly nice. I would love to - unfortunately I have a prior appointment with an endocrinologist, plus a possible reunion involving my ex-g/f and some other weird and wonderful characters I met while spending an amusing Christmastime in a German health clinic. Can't wait to (one day, hopefully), shift this chronic fatigue (see my profile) and get back to travelling and enjoying myself a bit more, and when that happens I shall hope to clink glasses with a few investors such as yourself.

There's also a chance I'll be returning to the UK in a few months' time - by no means definite, but it might make socialising with MoneyAM posters a bit more straightforward - I'll let you know what happens!

Welcome to MOG too!

PS - could you advise the title or "EPIC" of that thread as I can't see it at the mo. Thanks.