Mediterranean Oil & Gas plc completes transaction with Genel Energy
Offshore Area 4
Mediterranean Oil & Gas Plc (AIM:
MOG) is pleased to announce that it has successfully completed the sale
of 75% of MOG's shareholding in its wholly owned subsidiary, Phoenicia
Energy Company Ltd ("PECL"), to Genel Energy plc ("Genel").
PECL owns the rights to exploration activity in Malta Offshore Area 4.
Under the terms of the sale agreement Genel has acquired MOG's 75% interest
for the following consideration:
immediate cash payment of US$10 million;
carry of the cost for the first exploration well Hagar Qim 1, planned
to be drilled to a minimum depth of 2,500 metres;
carry of the cost for the second exploration well up to a maximum of
US$30 million gross expenditure;
MOG's option, should the costs of the second well exceed US$30 million,
Genel will provide a financing arrangement to fund MOG's 25% share of
any additional expenditure, at an interest rate equivalent to 3 Month
Libor plus 400 bps.
Bill Higgs, Chief Executive of Mediterranean Oil & Gas, commented:
"We are very pleased to have completed this transaction with
Genel. This enables PECL to progress with the preparation for the drilling
of the MOG operated Hagar Qim 1 exploration well offshore Malta, planned
for late 2013."