LONDON – Rockhopper Exploration has reached agreement to acquire all shares in Mediterranean Oil & Gas (MOG).
The ultimate value of the transaction, which has to be ratified by the companies’ shareholders, will depend on the outcome of an exploration well later this year on theHagar Qim prospect in Offshore Malta Area 4, block 7, in which MOG is participating.
Rockhopper will only pay the maximum agreed amount if 2C contingent resources of recoverable liquid hydrocarbons are 80 MMbbl or more, a level considered to be viable for development.
MOG is an AIM-quoted E&P company with operations in Italy, Malta, and France. It produces natural gas onshore and offshore in Italy, and holds reserves and contingent resources of 33 MMboe and unrisked prospective resources of more than 1,200 MMboe.
Its main producing asset, the Eni-operatedGuendalina field in the Adriatic Sea off eastern Italy, is currently delivering around 35,650 cm/d (1 MMcf/d) of gas. MOG has also been seeking permission from the Italian authorities to develop the offshore Ombrina Mare discovery, which has 2C contingent resources of 26.5 MMboe.