Mediterranean Oil & Gas (LON:MOG) claims it has made significant progress with preparations for its fourth quarter drilling programme in Malta.
The company has completed the sale of 75% of its stake in Phoenicia Energy, signed a deal with AGR Well Management for the equipment to drill the Hagar Qim 1 well, with its operational base in Malta due to open in May.
In the update on its first quarter operations, Mediterranean, which reflected on a positive ruling on its Environmental Impact Assessment (EIA) for Ombrina Mare in Italy, said it generated revenues of €3.05 million (£2.6mln), an average realised price of €0.31 per standard cubic metre (£0.26mln per scm).
Net production, meanwhile, in the three months was 9.9mln scm, with average daily production totalling 110,000 scm. Well GUE-2ss, which accounts for around 30% of production from the Guendalina Field, has been shut in since March 5 pending work with operator ENI to determine the cause of an influx of water, which saw production halted.
The company’s onshore Italian gas fields returned net production of 1.4mln scm in the first quarter.
Bill Higgs, chief executive, said: “We have had a busy start to what is going to be an important year for MOG as we gear up for the drilling programme in Malta in Q4 2013 and as Ombrina Mare appraisal drilling draws nearer.
“We are financially strong and continue to build our cash position from production.”
