Malta: MOG Acquires Area 4 PSC Stake from Leni

Mediterranean Oil & Gas (MOG) has said today that it has taken a 10 per cent stake from Leni Gas and Oil (LGO) for licence area 4 PSC in Malta, bringing its own stake in the asset to 100 per cent.

The transfer of the stake in the offshore block is completed through MOG subsidiary Phoenicia Energy Company Limited and Leni Gas and Oil Investments (LGOI). The transfer is done at a cost of $1 (USD), effective from January 1 2012. In addition to this $1 cost, Phoenicia will also assume liability for Leni's residual costs of $19,050 for 3D seismic acquisition in 2011, arising from a Joint Operating Agreement between the two companies.

MOG said today that it believed its acquisition of the stake will allow it to better develop the asset, one which it will now fully own and operate.

"'The acquisition of LGOI's 10 per cent interest in Malta Offshore Area 4 PSC will elevate the company's working interest to 100 per cent," CEO of MOG Dr. Bill Higgs said today. "We believe this will help to facilitate the current farm out process in respect of the licence, which we aim to complete prior to Q4, 2012, and will enable us to more effectively pursue the further exploration of the licence with the drill bit."

The transfer of the stake is subject to the approval of the Maltese Minister for Resources and Rural Affairs.