Cairn makes offer for medOil

Offshore staff

EDINBURGH, UK --Cairn Energy is set to acquire Mediterranean exploration specialist medOil, via a $30.25 million offer from Cairn's UK-based subsidiary, Capricorn Petroleum.

The main attraction for Cairn is medOil's 100% interest in the Louzna exploration permit offshore Tunisia, where four wells were drilled in the 1970s and 1990s. One led to an oil discovery (M'Sela-1), while another had oil shows. Recently, medOil acquired new 3-D seismic over part of the block, which led to an upward revision of potential oil reserves in two of four prospects close to M'Sela-1.

Alsok medOil has early-phase exploration positions in Albania, Sicily, and Spain.

09/10/2007