Exploration firm Mediterranean Oil & Gas Plc (MOG) has said the partnership behind the Area 4 production sharing contract offshore (PSC) Malta has been given a six month extension.
The PSC covers Area 4, covering Blocks 4, 5, 6 and 7, about 150km offshore Malta. The extension, which extends the expiry date of the first exploration period to July 17, 2014, will give contractors to the PSC partnerhsip sufficient time to complete exploration drilling activities forecast to start in Q1 2014.
MOG is currently preparing to drill the Hagar Qim 1 exploration well offshore Malta with partner Genel Energy.
Bill Higgs, CEO of Mediterranean Oil and Gas, said:"We appreciate the continued support of the Maltese Government as we prepare to drill the Hagar Qim 1 exploration well with our partner Genel Energy."
"The first half of 2014 will be an important time for the Company with the drilling of two exploration wells; one offshore Malta Area 4 and one onshore Italy. This increased activity is an important step forward for the Company."
The Maltese Government also approved a deal which will see MOG subsidiary Phoenicia Energy Company Ltd (PECL) taken over by Genel.
MOG will retain a 25% stake in PECL through its subsidiary Melita Exploration Company Ltd (MECL).MECL and PECL have also entered a joint operating agreement, with PECL becoming operator.
Following the deal, PECL will hold 75% working interest in Area 4, and MECL the remaining 25%. Both are joint contractors to the PSC.
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