General Discussion Thread on MOGL

6th Jan '10 by Betasurfer

3 comments 2730 reads

A general thread to discuss MOGL developments. Just summarising the assets:

Italy

Gas production providing positive cash flow to current operations.
Unhedged oil and gas. Certified 20MMbbls oil reserves at Ombrina Mare. Oil upside plays as operator with shallow offshore discovery and several large oil targets. Development of oil and gas resources.
17 production concession and 13 exploration permits
3 production concessions applications
9 exploration permit applications
Operator for 11 concessions and 7 permits
Production of 1 Bcf p.a.

Malta

Four prospective blocks in offshore Malta
Blocks cover an area of 5700km²
Petroleum potential is related toTunisian and Libyan fields
Blocks are prospective for early Tertiary reefs
- Analogues are the Metlaoui fields and the highly productive Intisar reefs in Libya’s Sirte Basin

Tunisia

MOG holds 25% working interest in the Teboursouk permit in Northern Tunisia
Covers a surface area of 4,956 km²
Seismic and geological works (since 1995) have defined several leads
TEB1 well drilled in 2008; produced water and was suspended

France

MOG holds 11.154% working interest in the Grenade Oil Field
MOG has a 11.154% working interest in the Donzacq Permit application

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Betasurfer

6th Jan '10

Op update from yesterday: http://www.medoilgas.com/resources/Operational%20update%20Jan%202010.pdf

Award of Guendalina Production Concession in Italy

The Board of Mediterranean Oil & Gas Plc (AIM: MOG), the central
Mediterranean-focused producer, developer and explorer of oil and gas assets, is
pleased to announce that the Ministry of Economic Development (the "Ministry")
has now awarded the production concession for the Guendalina gas field (AC 35
AG). The award will be published in the Ministry's official bulletin (Italian
Hydrocarbon Bulletin (BUIG year LIV n. 2 - 31st January 2010)).
.
As a result of the concession award and given the latest timetable provided to
MOG by ENI SpA ("ENI"), MOG expects ENI to start development activities on the
Guendalina gas field in January -February 2010.

corkboy

19th Apr '10

Hi,

I'd heard of MOG a few times on various bulletin boards but didnt have a clue what their story was so read up a bit. For anyone wanting a crash course, strap on your helmet and get ready for some dodgy analysis.

I've just focused on their main assets, which are mainly are based in Italy:

1. Ombrina Mare (100% W.I)
The 2P figure is 40mm bbls of 18 API oil, which Ambrian apply a 12.5% discount compared to Brent. The FDP has been approved and the next step is to get Environmental approval, with a view to producing in 2013. The huge hurdle to all this is, surprise surprise, a lack of cash. The capital expenditure required to bring the field to production is 150-180m euros.

2. Guendalina (20% W.I., Eni 80% operator)
4.5BCF 2P net to MOG. Eni is the operator and the FDP has been approved and they also have environmental approval, aiming for first gas in Sept 2011. They have a $10m loan agreement with Bank of Scotland to help pay their way on this one but apparently Eni have notified them that costs have gone up, although no figure is given.

3. Monte Grosso (23% W.I operator, remaining W.I split between Eni and Total)
Prospective resources of 64mm bbls net to MOG, with the COS independently assessed as being 21%. They dont plan on drilling until mid 2011 with the well expect to take over FIFTEEN months. The onshore well will be drilled to a depth of 6800m and so they will need to cope with high temp and pressure so real sqeaky bum time, to use the offical terminology. I haven't come across any estimated cap ex figures but imagine they will be rather big. MOG are the operators here but, as the Ambrian note points out, they should benefit from the expertise of Eni.

4. Offshore Malta (90% W.I and operator)
PSC signed with the Maltese government in July 2008 and they need to drill one explo well (min cost $5m) before the next expiry date, July 2011. They are currently reprocessing 3D seismic. The best case prospective resources is 1350mm bbls net, so loads of potential but at a very early stage here so I wouldn't get too excited yet.

Finances:
The current enterprise value is £26.2, for 43MM boe 2P, giving a value of about 91cent per bbl boe which sounds like a bargain but alas, the obvious catch is a complete lack of cash. They probably have enough producing assets to keep the lights on but with only about £6m in the bank, they will need a quite a collapse in the Euro before it will cover the estimated 150m euro required for Ombrina Mare :-) Obviously, they are looking at how to raise the funds to cover this. Given the involvement of Eni in Guendalina and Monte Grosso, I'd guess they are a prime candadite for a farm-in (or maybe just buy them out-right?). With a market cap of £16m for so much potential, the market seems distinctly unimpressed....

They have a presentation on their website from this month, which is definitely worth a read:
http://www.medoilgas.com/investor-relations/presentations/

And plenty of Research notes:
http://www.medoilgas.com/research-reports/

They are solely quoted on the AIM and so are not ISAable. Definitely seem very high risk so not one to bet the house on! I dont have any spare pennies and am not too sure if I would take the plunge anyhow. Still, at least I've learnt something: I can now spell "Mediterranean"...

Any thoughts?

22nd Apr '10

Great post, Corkboy. I have looked at this one in the past but never quite been brave enough to take the plunge. It does look interesting and potentially undervalued but, on the other hand, I don't see a short term catalyst for a revaluation?

Interestingly, although not that often discussed, MOG seems quite well-followed on the site (25 followers according to the stock page) so there may be a lurker who has a more informed view on it.

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Betasurfer

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