MOG gets loan to keep Malta licence

According to a report published this morning by oil specialist website UpStreamonline.com, it was explained that the  Mediterranean-focused explorer has already been given an 18 month extension to its production sharing contract licence for offshore area 4 on the condition that it acquire 1,000 square kilometres of seismic data and drill its first well by mid-January.

The company said it would use the funds to pay a seismic contractor to survey the area in order to keep up its commitments with the Maltese government signed in July 2008 and updated in May.

Mediterranean Oil & Gas said it was “currently in negotiations with a seismic contractor”, adding that it plans to sign a deal before the end of the month so the work can begin.

The company admitted that it needed the loan to maintain its 90% interest in the licence after a farm-out deal for a part interest in the area “did not complete earlier in the year due to factors beyond the company's control”.

Chief Operating Officer Sergio Morandi said that the area “has some very large structures”, adding that the player would devise a drilling campaign after the seismic survey provided the results were positive.