Hayward’s Genel to drill for Malta oil in early-2014

Former BP chief Tony Hayward’s new energy company targeting prospects of 250 million barrels of oil.

Oil company Mediterranean Oil & Gas plc has acquired a 40% working interest in an exploration study agreement for the three blocks in offshore Malta Area 3, through its subsidiary Melita Exploration Company Limited.

The other 60% interest belongs to Capricorn Malta Ltd, subsidiary of Cairn Energy plc which had entered into a two-year agreement with the Maltese government back in December 2012 for the three blocks, located north in the Sicily Channel, and covering an area of approximately 6,400 square kilometres.

Medoil claims the area contains a number of prospective leads. "We are very pleased to have completed this transaction with Cairn," CEO Bill Higgs said in a company announcement.

"This enables us to expand our footprint offshore Malta ahead of our exploration drilling in Area 4 later this year as MOG continues to geographically diversify exploration activities and capital spend. We look forward to working with Cairn to evaluate the exploration potential of Blocks 1, 2, and 3 of Area 3, which we believe could mirror the exploration opportunities demonstrated elsewhere in the Sicily Channel."

In a related development, former BP chief Tony Hayward's Genel Energy plc, which in February acquired a 75% stake in offshore Malta Area 4 from Phoenicia Energy for $11.7 million, announced that drilling preparations for the first well is scheduled for the first quarter of 2014.

Preparations for the drilling of the first well in the so called 'Hagar Qim' Area 4 are progressing, with a service order signed with AGR Well Management for the provision of drilling engineering and rig procurement support.

Genel is targeting 250 million barrels of "unrisked prospective resource with a point-of-sale of 20%", according to company estimates.