Mediterranean Oil and Gas plc has announced that it will acquire the 10 per cent interest in the Malta offshore area 4, currently held by Leni Gas and Oil Investments.
MOG said it will be acquiring the area through its subsidiary Phoenicia Energy.
The acquisition is conditional upon the receipt of approval from the Maltese resources minister.
“The acquisition of Lenigas’s 10 per cent interest in Malta Offshore Area 4 PSC will elevate the company’s working interest to 100 per cent. 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,” CEO Bill Higgs said.
Phoenicia will assume liability for LGOI’s residual costs arising under the Joint Operating Agreement with the acquisition of 3D seismic data in 2011 estimated to be of the order of USD20,000. The carrying value of the interest is £1.9 million which will now be written off.
Neil Ritson, LGO Chief Executive, commented: “LGO has decided as a result of its own technical assessment of the project to divest, at no further cost, its interest in the Malta venture which is both non-core and non-strategic to LGO’s onshore oil development mission. This divestment will allow us to avoid any further expenditure on Malta and to focus our management and cash resources on our core business of production growth in Trinidad.”