Mediterranean Oil & Gas (AIM: MOG), the European focused oil and gas producer and explorer, climbed 7% after reporting solid progress and confidence for the future of its Ombrina Mare Oil and Gas Field, offshore Italy.
Production from the company’s current assets was flat at 0.7 billion cubic feet, but group turnover increased 10% to €5.4 million thanks to a 17% increase in the price of gas sold, and the Company noted that the price achieved in September was up a further 30% to more than US$15/mcf.
Looking ahead, the key point made by Mediterranean Oil and Gas in the results was confirmation that a development plan for the Ombrina Mare Oil and Gas Field was anticipated to be submitted by the end of the year. Ombrina Mare currently has 20 million barrels of 2P oil reserves and 6.5 billion cubic feet of 2P gas reserves.
“Due to its size, the Ombrina Mare Field now dominates the Company's assets and focus. The Company will continue to advance its full portfolio of assets but our focus will necessarily be directed towards maximising the value from Ombrina Mare and progressing rapidly towards receipt of the production concession from the Italian Ministry for Natural Resources.
We will prudently be re-assessing our capital expenditure going forward to redirect our investment to nearer-term development projects to enhance shareholder value,” the company added.
As of 24 October, 2008, the Company had cash and un-utilised debt facilities of €14 million.
"The successful appraisal of the Ombrina Mare Oil and Gas Field was a major landmark in the growth of Mediterranean Oil & Gas plc,” stated Chairman Michael Bonte-Friedheim stated.