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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Med Oil & Gas | MOG | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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|---|---|---|---|---|
| 0.00 | 0.00% | 6.375 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 6.375 | 6.375 |
| Top Posts |
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Posted at 08/8/2014 08:17 by adam It is expected that trading in MOG Shares on the AIM market of the London Stock Exchange ("AIM") will be suspended at 7.30 a.m. (London time) on 8 August 2014 and that, following the Scheme becoming effective, the admission of the MOG Shares to trading on AIM will be cancelled at 7.00 a.m. (London time) on 12 August 2014. The last day for dealings in, and for registration of transfers in MOG Shares will therefore be 7 August 2014. |
Posted at 19/6/2014 22:08 by adam Syquant CapitalNotable if you multiply the number of long MOG by 0.0172 you arrive at the number of RKH they are short (give or take) 7,300,000 1.69% (MOG long) 125,560 0.04& (RKH short) This is a simple cash arbitrage and they have removed the share element by selling forward the RKH shares. This might partly explain the weakness in RKH share price, as well as MOG being a "free option" on RKH as regards the contingent element of the offer. Could make some sense to go long RKH as the ratio is quite low to get exposure through MOG (i.e. 1m MOG would get you just 17k RKH). Would expect a bounce in RKH once short-selling and switchers finished |
Posted at 23/4/2014 08:58 by glyn10 TIDMMOG RNS Number : 2637F Mediterranean Oil & Gas Plc 23 April 2014 23 April 2014 Mediterranean Oil & Gas Plc (the "Company" or "MOG") Q1 2014 Operational Update The Board of Mediterranean Oil & Gas Plc (AIM: MOG) is pleased to announce the following operational update for the three months ended 31 March 2014. Production and Revenues Production: MOG's total net production for Q1 2014 was 4.23 MMscm (equivalent to 0.15 Bcf, or 26,875 boe). This represents average net production of 46,975 scm per day or 299 boe per day during the period (Q1 2013: 700 boe per day). The Guendalina Field achieved net gas production (MOG 20% W.I.) of 3.19 MMscm (equivalent to 0.11 Bcf or 20,298 boe). This represents average net production of 35,479 scm per day or 226 boe per day in Q1 2014. The operating conditions of the well GUE 3ss have stabilized post the well intervention conducted in January 2014. The operator is reviewing the production data to identify the optimal operating parameters going forwards. The Guendalina Field is currently producing approximately 35,500 scm (225 boe) per day net to MOG. The Company's onshore Italy gas fields achieved net production of 1.04 MMscm (equivalent to 35.3 MMscf or 6,577 boe) during the period. This represents average net production to the Company of 11,496 scm per day or 73 boe per day. In February 2014 a coiled tubing operation was undertaken on the Vigna Nocelli 1 well in an attempt to restore production. The operation failed due to mechanical obstructions in the well. Alternative strategies to restore production from this field are currently being developed with the Joint Venture partners. Revenues: MOG's total net revenue for Q1 2014 was EUR1.05 million, representing an average realised price of EUR0.249 per scm, which was in line with management expectations. Subsequent Events: Offshore Malta - Area 3 Blocks 1, 2 &3: On 10 April 2014 Dolphin Geophysical completed the acquisition of 1,715 km of broadband 2D seismic, on time and under budget, as part of the work programme aimed at exploring this frontier exploration area where MOG's subsidiary Melita Exploration Company Ltd has a 40% W.I. in partnership with Capricorn Malta Ltd (a 100 percent owned subsidiary of Cairn Energy PLC) (60% WI, Operator). These data will now undergo seismic processing and are expected to be available to the Joint Venture partnership for interpretation in Q3 2014. Offshore Malta - Area 4 Blocks 4, 5, 6 & 7 MOG has been informed by the operator, Phoenicia Energy Company Ltd, that the Noble Paul Romano rig being used to drill the Hagar Qim well to the south of Malta (Block 7 of Area 4) is currently undergoing the final inspection and certification tests in Valletta Harbour. MOG understands this work is forecast to be completed in time for the rig to mobilise to the Hagar Qim well location and to commence drilling in May. Ombrina Mare: The Company announced on 17 April 2014 that, following the tribunal hearing held on 9 January 2014 in Rome, the Lazio Regional Administrative Court rejected the appeal filed by Medoilgas Italia S.p.A ("Medoilgas"), a wholly owned subsidiary of MOG. This appeal was aimed at obtaining an annulment of the letter sent by the Ministry of the Environment and of Protection of Land and Sea ("MEPLS") on 9 July 2013 instructing Medoilgas to complete an 'Autorizzazione Integrata Ambientale' (an Integrated Environmental Authorisation) ("AIA") for the Ombrina Mare project as a precursor to MEPLS considering the approval of the Environmental Impact Assessment ("EIA") decree. The Company has completed the activities necessary to finalise the AIA documentation, which will be submitted to MEPLS shortly. The Company will provide all necessary technical input requested by MEPLS to expedite the approval of the AIA and the EIA, so that the Company can move forward with the award of the Production Concession. Dr. Bill Higgs, Chief Executive of Mediterranean Oil and Gas, commented: "In the first quarter of the year the Company began to reverse the production challenges encountered at Guendalina in 2013. We are pleased that sustained production has been achieved at GUE 33ss and we are working with the Operator to maximise the value of the asset. "We look forward to a very active second quarter of 2014 as we move ahead with our drilling campaign offshore Malta and onshore Italy, as well as the processing of the new seismic data offshore Malta Area 3." QUALIFIED PERSON In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Bill Higgs, Chief Executive Officer of Mediterranean Oil & Gas Plc, a geologist, explorationist and reservoir manager with over 24 years oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement |
Posted at 27/3/2014 12:05 by garymegson RNS Number : 3558DMediterranean Oil & Gas Plc 27 March 2014 27 March 2014 Mediterranean Oil & Gas Plc (the "Company" or "MOG") Litigation Update: MOG wins legal case The Commercial Court today handed down judgment in the legal case brought by Leni Gas & Oil Plc ("LGO") against MOG's subsidiary Malta Oil Pty Limited. MOG is pleased to announce that LGO's case failed at every stage and was dismissed by the Court with judgment being entered in favour of the Defendants, Malta Oil Pty Limited and Phoenicia Energy Co Limited. In the opening section of his judgment, Mr Justice Males said: "...the claimants' case fails at every stage, in particular,... there was in my judgment no question of any intention to mislead on the part of Dr Higgs." Mr Justice Males also said: "On the critical issues Dr Higgs was a frank and straightforward witness in my view. Despite vigorous and even hostile cross examination in which he was personally accused of deliberate fraud over almost a day and a half, his answers were for the most part clear and compelling. They were also, in my view, in accordance with both the contemporary documents and the inherent probabilities of the case. To the extent that his account of the critical telephone conversation was in conflict with Mr Ritson's, I have no hesitation in preferring Dr Higgs' evidence." In the closing paragraph of his judgment Mr Justice Males said: "To borrow the oil industry terminology... it may have seemed to LGO that the prospectivity for these proceedings and the amount at stake were such that the economics of this litigation were positive. However, litigation like the oil business is a high risk activity and LGO has failed to strike oil." Further extracts from the judgment are set out in the appendix below. A further hearing has been set for next Thursday 3 April 2014 to deal with issues arising out of this decision such as the payment of the costs of the case. MOG will keep shareholders informed. MOG's Chairman, Keith Henry said: "The MOG Board is delighted by the strength of the court's decision to rule on all matters in our favour. We never doubted that we would win this case and Bill Higgs would have his reputation as a straightforward businessman and honest person upheld. "In 2012, LGO was not prepared to risk a relatively small sum of money to maintain its interest in Malta Area 4 and yet has been prepared to risk very substantial sums of money on High Court litigation. LGO's strategy, including the issuing of certain RNS announcements, has been difficult to understand. Our strategy, when all else had failed, was to let the court decide based on the evidence as presented. With this episode now behind us, Bill and the MOG team can look forward to focussing on the much more positive aspects of continuing to grow the company." MOG's Chief Executive Officer, Bill Higgs said: "This outcome will come as no surprise to anyone. We have worked hard to protect our shareholders' interests and we will ensure that we take all available steps to recover our legal costs from LGO without delay. In addition, we will also be consulting our solicitors in relation to certain public statements made by individual directors of LGO during the course of the litigation process. As this case is now at an end, I am very much looking forward to spending my time progressing our business and in particular the spudding of the well offshore Malta Area 4. I can assure shareholders that the court case has had no impact on operations and I thank them for their continued support." MOG was represented by Memery Crystal LLP LGO was represented by Mishcon de Reya. ENQUIRIES: |
Posted at 13/3/2014 11:37 by garymegson Someone else who has notes hmmm very strange maybe bobobobs eyes aren't as good as they used to be!09:46 Re: Reflections Mogger73 Thanks Romaron - you have posted far more than I could. From my notes, usual caveats apply:- NK in his summary tried to find a disconnect between evidence given by BH and SM regarding who was in charge of sending out the dossier with missing columns of data. The judge pointed out that the evidence referenced in NK's summary was incorrect as the one for SM was actually talking about the dossier created for Stellar for marketing purposes. The reference to BH's evidence referred to the dossier which was the agenda for the opcon. This resulted in a very flustered NK asking his solicitors to get his copy of his summary sent to the judge. Proved to me ( if it was needed) that the Judge had already carefully read through the summaries sent to him by both parties. As Ron has stated - NK was unusually flustered for a few minutes after. NK liked his analogies. His first was trying to find quantum by using a lottery ticket. If the ticket is £1 and the jackpot £100 and the chance of winning is 1 in 10, NK thought that the value of the ticket was in effect £10. The Judge again mentioned that there was still a 89% chance of the drill not finding oil. Another analogy was that of a jigsaw where the GENEL deal was the last piece which fitted perfectly to complete the fraud. The Judge said that it was possible that there were other pieces that could have fit ( ie other deal that could have come from the data room). NK said " true - but the GENEL piece was the shiniest piece" The other was the house being shared by 2 people. They put it on the market but in the meantime one party gets an offer so they decide to buy the other tenant out. NK stated that he thought data had been surpressed even though marketing had been sent out NK said that this part was not fraud, just misled Judge said that if fraud, then BH was playing it in a very risky way as LGO " might have had a chance of obtaining bulletins " sent by Stellar NK said LGO believed opcon would not happen at end of July. Judge agreed. Judge said that MOG should have sent info as not in default and asked the question to NK as to whether it was "important that they ( MOG)were fed up with LGO " Lots of legal definitions about fraud. NK's case is that BH had a problem ( LGO's 10%),MOG creates a hurdle( the need to drill to fulfill the PSA) , and then saw the solution ( creating a fraud by not telling LGO about GENEL) NK siad that BH only gave negative info to NR. That there was no Cretaceous and no positive economics). Judge said that giving just negative information is not fraud. NK said BH presented to NR that the solution ( a possible farm-out) was in the future and speculative but BH already knew about the GENEL solution. The timeline here is very tight. At the point of the phone call, the first GENEL offer had been refused and I think the second had just arrived but not discussed with the MOG board. Judge again said that the possible fraud was very risky as NR could just have asked the question "Are you talking to anyone?" NK said that BH's phonecall was not a courtesy call but one that was designed to defraud. Judge asks why NR doesn't ask "how the data room is going" NK said that NR was affected by the fraud. NK accepts that SM was not part of the fraud. Judge asks for clarity " how would NR have reacted if told about the comfort letter" Judge asks if NR had asked questions during the phone call would the answer have have been "we are in talks" Judge asks NK that if after that hypothetiacal question, nothing had been said. would that have been fraud? Bits of case law - the parabella case is one that NK has on his profile on his website. I then went for a long lunch, had too many beers and stumbled home. I presume that MOG's QC basically said something along the lines of:- BH is a man of integrity that has never done anything like this in the past LGO have used hindsight to form there case The case is weak Etc etc. |
Posted at 13/3/2014 08:37 by garymegson I'm sure the LGO shareholders (not bobobob5) will have a different take on this!Groundhog day: (Courtesy of Romaron triple I) That's what it felt like. At one stage, our brief Tony Zacoroli (TZ) said after following the LGO brief, Neil Kitchener (NK) that it was like listening to two different cases. The judge Justice Males (JM) said "that's not unusual". I must say that it gives you an idea when the only humour in Court does come from the judge. When asked by NK if "Your Honour" was happy with the arrangement of yet more copious document files he replied "ecstatic". NK stareted off the closing submissions. His opening sentences said that this case would not turn on law which completely threw me. English law does not allow one man to mislead another. Intentions of representation and is BH an honest man? His main import was that the 10/7/12 was not a courtesy call but the basis for the Fraud. A mention was made here by JM that the call/meeting was set up on the 6th when the Genel interest was not known. NK then said that BH then fed negative info about the asset. Important info about positive economics was suppressed. JM states that the deal still has an 89% chance of failure. Then there was a lottery ticket analogy from NK which I didn't get. The bulletins that went out (not sure of date) from Stellar mentioned positive economics but LGO said they never got them. The proposed OpComm agenda suppressed positive economics by leaving two columns out. At 10.52 chaos as Kitchener hisses "I need those documents now" to his staff. Panic ensues, people disappear and NK develops a pronounced stutter. I made a note here that judge starts helping Mishcon. I make another note in capitals "flogging a dead horse" (my words). It really was that dire but eventually NK got the rhythm back. NK says that MOG have all the info and LGO are totally reliant on them. He himself accepts that it is not a widows and orphans scenario. JM says "is it a case of MOG fed up with LGO not paying their bills". NK replies LGO not legally in default but it could be a psychological explanation for (not sure which side). Another analogy or demotic as NK like obscure words. Two share a house that needs repairs. Formal sale in one weeks time, ad placed in gazette. Other party sits on an existing good offer and says nothing. That's fraud. NK says nod, wink, unsaid many ways to Mislead. BH gave inaccurate info. JM says to NK "NR didn't ask BH, are you talking to anyone". NK replies that BH is trying to forestall that question. JM mentions that is he saying "you should hear from the owner, not the estate agent's window" as more info was in the bulletins. I thought this was telling from JM when he followed up with "my impression is it's quite a small world" in reference to farming out. NK says that farm out is essential. JM commented regarding the phone call "nobody says, "how's it going"" regarding farm out. NK says NR was "blindsided" and only told negatives, no positives on the 10/7 phone call. Sergio Morandi NOT IN ON FRAUD says NK. Around this time NK drops emphasis on Comfort Letter and some comments about DCF in the ERC report is the only way to value the asset. JM says he has to accept NR evidence that it would not have helped LGO with Zeus being kept in the dark. JM adds "we're talking to people" is all that NR would have got if he had asked the question on farm out to BH. [inference, he wouldn't have been any the wiser (my words)]. For those who care; NK mentioned the Parabola case and Downs & Chappell as being precedents. Finishes 12.32 TZ starts and says "We utterly reject the wide spread accusations which are of a sweeping nature". Which does kinda sum up the LGO case imo. He again suggested that NR has reverse engineered his view. He highlights that NR says farm out not always essential which contradicts NK's earlier assertion. TZ says a data room tells you nothing about other discussions happening and that is normal in the oil business. Formal marketing should continue whatever as MOG is under pressure and if this failed, that was it. On 6/7 MOG could not possibly know the Genel would do the deal and could pull out at any stage (Dominion example given). Another example of evidence hidden by MOG in plain view was the 9/7 proactive video about the new data room. Farm out continuous since 2010. Invention or recreation with hindsight after the event was a reference to LGO evidence. I've then got pages of stuff which argue the opposite to NK, all old ground imo. One item I did note was the accusation that the OpComm agenda hid positives. Apparently it was covered in P and L's which mean plays and leads. As NR didn't read them it was obviously a clever part of the MOG Fraud strategy. NR had lost focus on what he was being told or shown. Apparently the Stellar website had Jurassic leads/plays as well as the bulletin. Carefully hidden in plain sight. Mention of positive economics on website but not sure which one. TZ says DCF NOTACCEPTED as valuation (one for Eagles, didn't understand). JM comments that ERC has a different function to Stellar. TZ says that the easiest way to keep LGO in the dark would to have served a Default notice but delayed serving in good faith. Clarified that a "closed period" was not the same as closed to a deal as hinted by LGO. TZ again says that LGO are behind on debts and NR is not being paid a salary for period Sep2011-June2012. TZ talks about the LGO accusations and I write "Beyond elaborate". Finished 3.50 NK has another bite. He says their case is not elaborate and the most straight forward in the world. More of the same. Finishes at 4.30 ============ Judge says "I will Reserve Judgement" and that's it folks. The judgement could easily take 6 months. I have tried not to mislead and off to watch Line of Duty. Will come back after. Bobajob will hopefully write more tomorrow. I must admit to not reading his stuff because he is a dyed in the wool LGO fan and I can only take so much of the legal arguments. He has a gig this evening and I doubt he'll write anything until tomorrow. We had a game of "footie" in no man's land afterwards. Hostilities are over for now, plus he owes me a pint. |
Posted at 11/3/2014 09:57 by garymegson altom, Try a mog view all bull of course ;-) 09:27 In Court today 10 March romaron Good morning. Apologies that I couldn't do the report yesterday but I was out celebrating and I had things to do this morning. More of that later. My intermittent note taking took second place to the theatre in front of me. A reinvigorated BH was on first. He is similar to Carl Froch. A slow starter but strong in the final rounds. We won on a unanimous decision imo. The real bombshell though was the announcement by the LGO barrister that they would prepare closing on Tuesday (today) and Wednesday would be for "polishing off" (my words). I then put in my notes DELAY EXPERT TESTIMONY. I'm hoping that Eagles was there and will comment as he has the legal knowledge I lack. Our brief was strangely acquiescent and I was surprised. One thing that made me chuckle. The insistence by LGO that John Hurst (Genel: Head of Exploration) was enthusiastic about Malta. Whenever have you met a geologist that wasn't keen as mustard? Its a given and is why they're the most popular speakers at AGM's. Still, I enjoyed confirmation. Later we had Sergio Morandi who had an interpreter sitting beside him. The LGO side changed the brief to a Ms O'Sullivan. She was slaughtered by SM. At no time was he daunted or shaken. It really was a no contest. A Professor of Applied Seismology who had worked for companies like Shell and ENI would have a depth of understanding and experience which would have beaten Rumpole. The interpreter was a stroke of genius. SM speaks better English than most of us (and all LGOposters) but was afforded more lenience by the judge and twisted the lawyers points better than they could. He certainly understands the meaning of "subjectivity". Of course what really spoilt it was his unfailing charm and calmness under questioning which to a layman often seems downright rude. He was unflappable. I never doubted his performance as I once spent 9 hours in Milan in a smoke-filled room arguing with Italians (I lost). Think Machiavelli as I doubt you know my wife. There was an exclusivity agreement between MOG and Genel which SM explained was outside of the time-frame when it would have affected LGO and there was a distrust of LGO by the Maltese authorities. In the opinion of SM, NR could have asked or found out whatever he wanted just by attending OpComm meetings or visiting a data room. The case imo revolves around NR insisting he had a right to be spoon-fed and have his hand held. I felt that no evidence had been produced to say that there was collusion between the Directors of MOG to commit a fraud and the body language of the LGO team said it all. The Genel lawyer who was there as an observer, who was obviously tight lipped, did say to me that the charge that LGO had brought was a mountain to climb and very difficult to prove. A suggestion is not good enough; PROOF is necessary and there wasn't any imo. The Liberum guys also seemed to like what they saw and heard. I've been thinking about today being cancelled and I feel an approach has been made by LGO. It looks like the experts are not needed as the extra expense will probably only increase costs for them. They would have to prove a loss and Quantum (not MOG) and frankly nothing has come out in Court to help them. My best guess is that they will say that they accept that Fraud never took place and MOG will own up to overstaying on a double yellow. Both sides will pay their costs and life will resume. MOG have a lot to catch up on and NR will be having a long chat with DL. I think the case by LGO has been reckless and that NR is a poisonous little straw-clutcher who has cost two sets of innocent shareholder considerable amounts of hard earned money. Am I right. How do I know? We take a view on what we read and hear. That's why we invest. There is a buy of MOG shares today of 500,000 (2 x 250,000), that was me. I was out later with a few pals I'd made (Sid inveigled his way in again) and later (quite a lot later actually) I was stumbling towards Chancery Lane when I spotted some familiar faces (beer glasses on so no guarantee) from the Court gathered around an old Bentley with the hood up They had sat on the LGO side so I have assumed they were drowning their sorrows. One looked hazily across to me and waved. I asked if they were OK and he said "piston broke". I answered, "that's why you should think twice before giving money to lawyers." |
Posted at 06/3/2014 08:56 by garymegson Make of this what you will as it hasn't been posted on here.Wed 19:45 Today in Court March 5 romaron Just to set the scene: Paxman v Knott 4.30 = Zarcoli v Ritson (4.30 in) I didn't enjoy today as much. Interrogation and evisceration loses its appeal after the first hour. The cavalier attitude towards costs is amazing. Its almost as if both sides are on legal aid (I suppose you are effectively if you cannot pay if you lose). It was the MOG barrister questioning Mr Ritson under oath all day. I am not a court reporter or capable of shorthand so if you want a blow by blow account then I'm sure there will be somebody who recorded today's events so I shall just post the points that interested me. It opened with Zarcoli (Z) the MOG barrister eventually getting Neil Ritson (NR) to reluctantly agree that siesmic data was available at all times in Rome. NR rather petulantly said it was MOG's responsibility to deliver it to LGO. That was why he didn't take up the offer. I realise that BB posters try or are accused of putting over a one-sided view for their team so I take particular interest when Justice Males (JM) intervenes. JM interventions: To NR "is a data-room the First step in a farm-out?" To NR "Almost always also means NOT always". To NR "No company would pull out of marketing because discussions [on farmout] are taking place". To NR "[MOG] would try to deceive you and the world by the video 9/7/12?". To NR [upon NR's lack of time to read reports/letters due to holiday in July 12] "You're not a one man company?" to which NR replied that "we are small and his deputy was part-time & Fergus was busy". *An uncharitable person might say his holiday was more important and this was his Tony Hayward moment. To NR "an unconscious decision" questioning an action which puzzled him. To Z "that was uncalled for!" an admonishment when Z asked NR if he was physic [a contemporaneous note appeared to foretell the future] NR struggles with a straight answer or Yes or No. His most common reply is "I can accept that is an interpretation" or a variation after long consideration. The 19 July 12 was important as there was an OpCom meeting where an Equipoise report was to be made. Somebody else can add colour here as NR said he wasn't allowed certain material but if he had made the effort he could have found out. Bill Higgs (BH) sent out 86 bulletins regarding marketing/farm out but NR was unaware or couldn't remember. Z says there is no prospect in cretaceous according to NR. NR agrees, making farm out more difficult and is forced to agree that in LGO opinion Malta has gone from prospect to liability. He sends an internal email saying "we just need to get out of this". He emails David Lenigas and Horton. Do we "cut and run or stand and fight?". Decision is to cut and run. He also suggests going adversarial on an outstanding invoice with MOG of $19,000. Threats to block the well are mentioned. I could go on with some technical stuff (no expert) which is mainly NR saying something about a letter of comfort regarding the Maltese Govt (MRA). The Court seemed to accept that it was a technicality as the MRA would only grant an extension letter if the Joint Venture committed to the well. NR says he would vote to block the well. NR complained that MOG showed info to 3rd parties but not to LGO. NR never asked for an update on farmout. NR said today "lack of willingness not ability to pay cash calls" without prompting (unusual). I'm ending on this as I said it may come back to haunt him when asked if it was a case of, can't pay or won't pay. He chose won't pay so it was a little surprising that he hadn't been paid a salary from Sept 11 to June 12. He had nobly put himself at the head of other creditors. This raised an eyebrow from JM. My personal opinion is that NR blames his incompetence on MOG, but then I would say that according to BB culture and practise. Tomorrow is BH's turn and I expect the Mishcon guy to be worth his labour. I have an |
Posted at 27/1/2014 17:31 by glyn10 RNS Number : 5169Y Mediterranean Oil & Gas Plc 27 January 2014 27 January 2014 Mediterranean Oil & Gas Plc (the "Company" or "MOG") Q4 2013 Operational Update The Board of Mediterranean Oil & Gas Plc (AIM: MOG) is pleased to announce the following operational update for the 3 month period ended 31 December 2013. Production: MOG's total net production for Q4 2013 was 4.24 MMscm (equivalent to 0.15 Bcf, or 26,980 boe). This represents average net production of 46,133 scm per day or 293 boe per day during Q4 2013 (Q3 2013 399 boe per day). Production levels were down quarter-on-quarter as a result of Guendalina Field wells GUE 3ss and GUE 2ss remaining offline for the full quarter. The Guendalina Field achieved net gas production (MOG 20% W.I.) of 3.06 MMscm (equivalent to 0.11 Bcf or 19,463 boe). This represents average net production of 33,281 scm per day or 212 boe per day in Q4 2013. Investigative work, undertaken by the operator, ENI, demonstrated that the reservoir remains in good condition in terms of pressure and absence of formation water, and issues with the production performance were likely due to the plugging of the well completion. On 24 December 2013, the operator initiated remedial operations to restore the production at GUE 3ss. These operations were hampered by difficult weather conditions in the Adriatic. The intervention was completed successfully on 11 January 2014 and the well returned to low-rate production. The operating condition of the well continues to improve as the well cleans up. A further update will be provided once production from GUE 3ss has stabilized. The Guendalina Field is currently producing approximately 36,000 scm (229 boe) per day net to MOG. In Q4 2013, the Company's onshore Italy gas fields achieved net production of 1.18 MMscm (equivalent to 41.8 MMscf or 7,516 boe). This represents average net production to the Company of 12,852 scm per day or 82 boe per day in Q4 2013. Revenues: MOG's total net revenue for Q4 2013 was EUR1.1 million (Q3 2013 EUR1.8 million), representing an average realised price of EUR0.253 per scm (Q3 2013 EUR0.295 per scm). The average realised price was lower in Q4 than Q3 due to the dual effects of entering the new thermal year contract with Repower Italia S.p.A. and changes to the Euro versus US Dollar exchange rate. Total net revenue for 2013 was EUR8.2 million (2012 EUR16.3 million). Net revenue from the offshore Guendalina Field was EUR6.7 million and EUR1.5 million for the onshore Italy gas fields. Offshore Malta - Area 3 Blocks 1, 2 and 3: As part of the work programme aimed at exploring this frontier exploration area, where MOG's subsidiary Melita Exploration Company Ltd has a 40% W.I. in partnership with Capricorn Malta Ltd (a subsidiary of Cairn Energy PLC) (60% WI, Operator), the joint venture has approved the acquisition of approximately 1,500km broadband 2D seismic in H1 2014 and the operator is finalising the preparation of the seismic campaign. Dr. Bill Higgs, Chief Executive of Mediterranean Oil and Gas, commented: "The fourth quarter of the year was a difficult period for the Company with the continued production challenges at Guendalina. We are pleased early indications suggest that sustained production can be resumed at GUE 3ss. "We look forward to a very active first half of 2014 as we move ahead with our drilling campaigns offshore Malta and onshore Italy, as well as the acquisition of new seismic data offshore Malta Area 3." QUALIFIED PERSON In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Bill Higgs, Chief Executive Officer of Mediterranean Oil & Gas Plc, a geologist, explorationist and reservoir manager with over 24 years oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement. ENQUIRIES: |
Posted at 19/9/2013 11:37 by glyn10 TIDMMOG RNS Number : 3608O Mediterranean Oil & Gas Plc 19 September 2013 MEDITERRANEAN OIL & GAS PLC (the "Company" or "MOG") 19 September 2013 Unaudited Interim Results for the six month period ending 30 June 2013 The Board of Mediterranean Oil & Gas Plc (AIM: MOG) is pleased to present the Company's Interim Report and Unaudited Financial Statements for the half year ending 30 June 2013. Operational Highlights -- Headway made in advancing the Production Concession application for Ombrina Mare (MOG W.I. 100%), Italy: -- Commission charged by the Ministry of Environment ruled in favour of MOG's Environmental Impact Assessment ('EIA') submission. -- EIA Director General of MEPLS sent draft EIA decree with positive recommendation to the office of the Minister. -- Appeal filed before the Administrative Court in Rome against the MEPLS seeking, among other things, a judicial order to instruct MEPLS to issue the EIA Decree. -- Progress achieved in the exploration of Malta Offshore Area 4 Blocks 4, 5, 6 & 7 ("Area 4") -- Completion in February 2013 of sale transaction with Genel Energy plc ("Genel") allowing the Company to proceed with planning for the first exploration well. -- Seabed site survey for the Hagar Qim 1 well Area 4 completed by Fugro Ocean Seismica S.p.A. ("Fugro") to determine suitable well location. -- Secured rig for drilling operations and all procurement are on track to drill the well in Q1 2014. -- Enhancement of the Portfolio: -- Acquisition of a 40% working interest in the Exploration Study Agreement ("ESA") relating to Offshore Malta Area 3 - Blocks 1, 2 and 3 ("Area 3") alongside Capricorn Malta Ltd ("Capricorn")(W.I. 60% and Operator), a subsidiary of Cairn Energy PLC ("Cairn"). -- Award of the Aglavizza production concession onshore central Italy which includes the Civita 1 discovery. -- Successfully completed first production test on Civita 1 discovery. -- Completed divestment of 13 non-core exploration and production gas assets, onshore Italy, to Canoel International Energy Limited ("Canoel"). -- H1 total gas production of 17.4 MM scm; 0.61 Bcf (H1 2012: 26.2MM scm; 0.93 Bcf). -- Unexpected shut-in of Guendalina 2 ("GUE-2") and Guendalina 3 short string ("GUE-3ss")(MOG W.I. 20%, ENI W.I. 80% and Operator) caused by damage to the well completions has curtailed current production to approximately 34,000 scm/d per day (216 boe per day). -- Feasibility of increasing production from the Guendalina 3 long-string ("GUE-3ls") is being investigated along with remedial operations to restore full production performance. -- Gas sales agreement with Repower Italia SpA ("Repower") signed and renewed for the offtake of the Company's entire net gas production from the Guendalina gas field until 30 September 2014. Financial Highlights -- Net cash and cash equivalents of EUR14.1m (30 June 2012: EUR4.1m). -- Revenue from sales of gas and condensate and operatorship income of EUR5.4 million (H1 2012: EUR7.9 million). -- Post EUR1.8 million impairment for Guendalina Field, loss from operations of EUR3.0 million (H1 2012: profit of EUR2.3 million). Outlook -- Guendalina field continues to provide the majority of the Company's revenues and cash flow. -- The Company continues to actively pursue the award of the EIA and Production Concession for Ombrina Mare. -- Exciting exploration programme to commence with the drilling of Hagar Qim 1 well, Area 4, planned for Q1, 2014. -- Work with our partner Cairn to evaluate the exploration potential of Area 3. -- Remain focused on capturing exploration, development and production opportunities that can add future material resources and reserves to the Company's portfolio. William Higgs, Chief Executive, commented: "MOG has a broad portfolio of production, development and exploration assets. In the first half of 2013, we closed the sale of a 75% interest in Malta Area 4 to Genel, which contributed to a positive cash position of EUR14.1 million at period end. The Company remains well positioned to actively pursue exploration and growth opportunities. Completion of the divestment of non-core assets onshore Italy in the period has enabled the team to concentrate on adding new opportunities for growth into our Resources Factory. We were pleased to announce the acquisition of a 40% interest in Offshore Malta Area 3 (Blocks 1, 2 and 3) from a subsidiary of Cairn, in July. Although we have made strong progress in the de-risking of Ombrina Mare with the EIA ruling in favour of the Company, we are experiencing significant delays in the signing of the EIA Decree. We continue to work with the relevant authorities to seek resolution of the issue. The Board and management team remains actively engaged in pursuing exploration and growth opportunities and look forward to the drilling of our first exploration well in the highly prospective Malta Offshore Area 4 with Genel." ENQUIRIES: Mediterranean Oil & Gas Plc Tel: +44 (0)203 178 www.medoilgas.com 5807 Bill Higgs, Chief Executive/Chris Kelsall, Finance Director Liberum Capital Limited (Nominated Adviser Tel: +44 (0)203 100 and Joint Broker) 2222 Clayton Bush/Ryan de Franck/Tim Graham RBC Capital Markets (Joint Broker) Tel: +44 (0)207 653 Matthew Coakes/Jeremy Low /Jonny Hardy 4000 FTI Consulting (Public Relations) Tel: +44 (0)207 831 Ben Brewerton/Alex Beagley/Georgia Mann 3113 Glossary -- scm: Standard cubic meter -- MMscm: Million standard cubic meters -- scf: Standard cubic feet -- Bcf: Billion standard cubic feet -- Boe: Stock tank barrels of oil equivalent -- MMboe: Million stock tank barrels of oil equivalent Chairman's Statement Dear Shareholder, The Company is pleased to announce its results for the six month period to 30 June 2013 and continues to progress with the development of our key assets and build the portfolio. In February, the Company completed the sale of a 75% interest in its subsidiary Phoenicia Energy Company Limited ("PECL") to Genel. PECL owns the exclusive rights to exploration under the Malta Offshore Area 4 Production Sharing Contract (the "Malta PSC"). The Company was pleased to announce in July that it had acquired a 40% working interest in the ESA relating to Area 3 alongside Capricorn. The Commission charged with ruling on the Ombrina Mare oil and gas field Environmental Impact Assessment ("EIA") ruled positively in favour of MOG's submission, in January. However, following continuing delays in the issuance of the EIA, the Company in August requested a judicial order to instruct the Italian Ministry of the Environment and of Protection of Land and Sea ("MEPLS") to issue the EIA decree. The Company is maintaining ongoing dialogue with the Italian Government, with the objective of identifying a route by which the production concession for the Ombrina Mare project can be issued. Consistent with our strategy to divest assets that are no longer key to the growth of the Company, in August the Company completed the sale and transfer of 13 non-core exploration and production licences onshore Italy to Canoel. This transaction has freed up our operational team to focus on the more value-adding assets in our portfolio. We remain committed to actively seeking opportunities to grow the Company and expand our portfolio. The positive progress we have made in recent months with regards to Malta, in particular, demonstrates MOG is building a team which can deliver on those goals. Keith Henry Chairman Chief Executive's Review Dear Shareholder, In the first half of the year the Company has continued to progress the key drivers of value creation in our portfolio. Exploration Offshore Malta Area 4 In February 2013 the Company completed the sale of 75% of MOG's shareholding in its wholly owned subsidiary PECL to Genel. PECL owns the exclusive rights to exploration activity in Malta Offshore Area 4. Under the terms of the sale agreement Genel acquired MOG's 75% interest for the following consideration: -- An immediate cash payment of US$10 million; -- 100% carry of the cost for the first exploration well Hagar Qim 1, planned to be drilled to a minimum depth of 2,500 metres; -- 100% carry of the cost for the second exploration well up to a maximum of US$30 million gross expenditure; -- At 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. The Company has continued to make positive progress towards drilling the first exploration well. Along with our partner, Genel, we have secured the use of the Paul Romano deep-water semi-submersible drilling rig to drill one exploration well, which is forecast to spud in Q1 2014. The Paul Romano will drill the Hagar Qim 1 exploration well in water depths of approximately 450 metres and will target reservoirs at a depth of approximately 2,500 metres. The exploration well will target unrisked likely gross prospective resources in the Lower Eocene/Paleocene of 109 MMboe (27 MMboe net to MOG). On 21 June 2013, PECL signed a 16km(2) well seabed site survey contract with Fugro for the Hagar Qim 1 well and the site seabed survey was completed by the vessel Minerva 1. The data obtained will assist the operational team in determining the most suitable location for the well. In addition, a contract has been signed with AGR Well Management Ltd ("AGR") for the provision of drilling support services to aid in the planning and execution of the drilling activities. All equipment required for the drilling has now been procured and the logistics for the well are on track to be ready ahead of the well spud. Offshore Malta Area 3 In August 2013, following the grant of approval by the Government of Malta, the Company acquired through its wholly owned subsidiary Melita Exploration Company Limited ("Melita"), a 40% working interest in the ESA relating to Area 3, alongside Capricorn. In December 2012 Cairn entered into the ESA with the Government of Malta for Area 3, which is located north of Malta in the Sicily Channel covering an area of approximately 6,000 km(2) and containing a number of prospective leads. The ESA covers an initial two year period with geological studies, the reprocessing of existing 2D seismic data, the acquisition of new 2D seismic data and limited capital works. The ESA provides the right to negotiate a production sharing contract and it can be extended to a third year to acquire 3D seismic data. The transaction has enabled the Company to expand its footprint offshore Malta ahead of the exploration drilling in Area 4 as MOG continues to diversify the geography of its exploration activities and capital spend. Monte Grosso - Onshore Italy Permitting activity and existing well site maintenance works were the main activities conducted during the period. The Monte Grosso 2 exploration drilling project presently remains on hold, pending resolution of residual permitting issues. S. Laurent - Onshore France The gas potential of the permit is currently the key exploration target in this asset. Large and high-risk gas leads of between 3 and 4 Tcf have been highlighted in the area and a request for an extension to the exploration period has been submitted by the Operator to the relevant authority. Development Ombrina Mare The immediate goal of the Company is to seek the award of a production concession for the Ombrina Mare field, which will enable the drilling of an additional pilot development well and the development of the 40 million barrels of certified 2P oil reserves and 6.5 Bcf of certified 2P gas reserves. The ratification by the Italian Parliament in August 2012 of Decree 83/2012 (the "Decree") relating to offshore exploration and production activities confirmed that restrictions introduced by decree DLGS 128/2010 no longer apply to applications for production concessions that were under review at the time DLGS 128/2010 came into force. As a consequence, MOG moved ahead to seek the award of a production concession at the Ombrina Mare oil and gas field based upon the application previously submitted in December 2008, which had received technical approval in June 2009 and was in the final stages of environmental approval when DLGS 128/2010 came into force. In January 2013, the Company was pleased to note that the Commission charged with ruling on the Ombrina Mare oil and gas field development Environmental Impact Assessment ("EIA") has ruled positively in favour of MOG's submission. Unfortunately, the continuing delay to the Ombrina Mare Project since that time resulted in the Company's Italian subsidiary Medoilgas Italia S.p.A., filing an appeal (the "Appeal") with the Administrative Court in Rome against the Italian Ministry of the Environment and of Protection of Land and Sea ("MEPLS"). The Appeal is aimed at obtaining the annulment and, as an interim measure, the suspension of the letter dated 9 July 2013 (the "Letter") from MEPLS requesting the Company to apply for and obtain an Integrated Environmental Authorisation ("AIA") as a precondition for MEPLS' approval of the EIA for Ombrina Mare. As part of the Appeal, the Company has also requested a judicial order to instruct MEPLS to issue the EIA Decree. Ombrina Mare is a project of considerable strategic importance to the Company and one that we look forward to progressing once a production concession has been awarded. Aglavizza In January 2013 the Company was awarded a production concession for the Aglavizza field, located onshore central Italy in the Abruzzo region. In February 2013 the Company successfully completed a three-stage step rate production test at the Civita 1 well, with the results indicating that initial production rates of 18,000 to 20,000 scm per day can be achieved. We expect to make a final investment decision on Aglavizza prior to year-end and forecast first production from the field in the second half of 2015. Production In the first half of 2013, gas production was 17.4 MMscm (0.61 Bcf), which represented a decrease of 33% compared to the first half of 2012. Production levels were down year-on-year due to GUE-2 being taken offline on 5 March 2013 to determine the cause of an influx of water which resulted in the well ceasing production. MOG continues to work with the operator to analyse the possible remedial work that can be undertaken to restart production. In late August 2013, the Company was informed by the operator ENI that production from GUE-3ss was shut down due to low pressure at the manifold. Post shut-in, the Guendalina Field is producing approximately 34,000 scm per day net to MOG. The operator is evaluating additional remedial operations to restore the production, including the merit of carrying out, as soon as possible, an acid wash in order to clean the string and the well completion with the goal of restoring full production performance. In August 2013, the Company completed the sale and transfer of 13 non-core exploration and production licences to Canoel. The divestment of these non-core assets is consistent with our stated strategy to grow the Company by investing in exploration, development and production opportunities that can add material resources and reserves to the Company's portfolio. Completion of the transaction has freed up our operational team to focus on the value-adding opportunities in our expanding international portfolio. The Company's average realised gas sales price for the first half of 2013 was EUR0.31 per scm (USD 11.5 per Mscf). Forward oil price forecasts and, in turn, forecast future gas prices, indicate that the gas price is likely to be 2 to 3% lower as we approach the end of the year. The gas sales contract for Guendalina, signed in March 2013 with Repower Italia, has been extended to include all of our Italian gas production and MOG is pleased to have the contract in place with Repower Italia until the end of the next thermal year, which ends on 30 September 2014. Financial Results The Company recently announced completion of the divestment of non-core exploration and production assets, onshore Italy ("Assets Held for Sale") to Canoel. Excluding the Assets Held for Sale, the Company generated revenues of EUR5.4 million in the 6 months ended 30 June 2013 (H1, 2012: EUR7.9 million). Total production of gas and condensates from all assets was 17.4 MMscm (0.61 Bcf), at an average gas sales price (across both onshore and offshore production) of EUR0.31 per scm (USD 11.5 per Mscf). The decline in H1 revenues year-on-year occurred largely as a result of the Guendalina Field well GUE 2ss being taken offline on 5 March 2013 to determine the cause of an influx of water. The post period-end shut down of production from the short string of the Guendalina-3 well has resulted in the Guendalina Field currently producing approximately 34,000 scm per day net to MOG. As a consequence, an impairment charge of EUR1.8 million was recognized in the period. The main contributor to the increase in Other Administrative Expenses of EUR3.6m (H1 2012: EUR2.1m) was legal fees of EUR444,000 incurred by the Company in relation to the defence of the legal claim brought by Leni Gas & Oil Plc ("LGO") and Leni Gas & Oil Investments Limited ("LGOI"). During the reporting period the Company realized a loss from continuing operations after tax of EUR3.4 million (H1, 2012: profit of EUR1.7 million). As at 30 June 2013, the Company held EUR14.1 million of cash and cash equivalents. Litigation In accordance with the timetable established by the High Court of Justice of England and Wales at the Case Management Conference held on 17 May 2013, relating to the claims brought by LGO and LGOI, a trial date has been set for early March 2014. The Company continues to refute all of the various claims that LGO and LGOI have made and will work to protect the interests of shareholders. Activities in Malta are unaffected by the on-going legal dispute. Health and Safety The Company continues to be committed to maintaining the highest standard in health, safety and environmental management. No injuries were recorded across our operations in the first half of 2013. Outlook MOG has a broad portfolio of production, development and exploration assets. Over the next 12 months, MOG intends to progress its key assets and pursue attractive and material strategic growth opportunities that we expect to identify. One of the key strengths of the Company is the wide international experience of its senior managers, particularly in the Mediterranean area, and the operational capability of its staff and organization, which we believe is critical in supporting the Company's ambitious growth objectives. William Higgs Chief Executive Qualified person In accordance with the guidelines of the AIM Market of the London Stock Exchange, Dr Bill Higgs, Chief Executive of Mediterranean Oil & Gas Plc, a geologist, explorationist and reservoir manager with over 24 years' oil and gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, has reviewed and approved the technical information contained in this announcement. Glossary 2P Reserves Has the meaning ascribed by the SPE/WPC Standard Bcf Billion cubic feet of gas MMboe Million stock tank barrels of oil equivalent MMscf Million standard cubic feet of gas MMscm Million standard cubic metre of gas Mscf Thousand standard cubic feet of gas P1 & P2 Reserves Proven plus probable reserves as defined in the SPE/WPC Standard Prospective oil/gas Has the meaning ascribed by the SPE/WPC Standard resources scm Standard cubic metre SPE/WPC Society of Petroleum Engineers/World Petroleum Congress Tcf Trillion cubic feet of gas SPE/WPC Standard Definitions and methodology for certifying hydrocarbon reserves and resources adopted by the SPE/WPC from time to time which presently requires the application of the 2007 Petroleum Resources Management System standards. INDEPENDENT REVIEW REPORT TO MEDITERRANEAN OIL & GAS PLC Introduction We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2013 which comprise the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of financial position, consolidated statement of cash flows and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts. Our responsibility Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability. Scope of review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements in the half-yearly financial report for the six months ended 30 June 2013 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM. BDO LLP Chartered Accountants and Registered Auditors London United Kingdom 18 September, 2013 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). MEDITERRANEAN OIL & GAS PLC (the "Company" or "MOG") Consolidated Statement of Comprehensive Income for the period ended 30 June 2013 ____________________ Note Unaudited Unaudited six months Audited six months ended year ended ended 30 June 31 December 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 Revenue 5,423 16,254 7,907 Cost of sales (1,426) (3,837) (1,157) _____ ______ ______ Gross profit 3,997 12,417 6,750 Other operating income 593 152 16 Administrative expenses -------------------- Depreciation, depletion and amortisation (2,163) (4,483) (2,410) Impairment (1,800) - - Other administrative expenses 6 (3,626) (4,031) (2,093) -------------------- Total administrative expenses (7,589) (8,514) (4,503) ______ ______ ______ (Loss)/Profit from operations (2,999) 4,055 2,263 Finance expenses (426) (894) (262) Finance income 16 463 91 _____ ______ ______ (Loss)/Profit from continuing (3,409) 3,624 2,092 operations before tax Tax (expense) / credit - (1,867) (411) ______ _______ _______ (Loss)/Profit from continuing operations after tax (3,409) 1,757 1,681 Gain on disposal of 'Held for sale' non current assets net of tax 3(a) 2,754 - - Profit/(loss) on discontinued operations net of tax 3(b) 103 (864) (1,259) ______ ______ ______ Profit for the period/year and total comprehensive income attributable (552) 893 422 to the equity holders of the parent _______ _______ _______ (Loss)/Profit per share attributable to the equity holders of the parent Basic and diluted 4 (0.13)cents 0.21cents 0.10cents _______ _______ _______ (Loss)/Profit per share on continuing operations Basic and diluted 4 (0.15)cents 0.41cents 0.39cents _______ _______ _______ Profit/(Loss) per share on discontinued operations Basic and diluted 4 0.02cents (0.20)cents (0.29)cents _______ ________ _______ Consolidated Statement of Financial Position at 30 June 2013 ____________________ Unaudited Audited Unaudited 30 June 31 December 30 June 2013 2012 2012 Assets EUR'000 EUR'000 EUR'000 Non-current assets Property, plant and equipment 14,355 18,256 17,840 Exploration and evaluation assets 23,388 19,801 28,900 Available-for-sale investments 34 34 34 Other receivables 1,038 804 697 Deferred tax asset 2,973 3,095 3,742 _______ _______ _______ Total non-current assets 41,788 41,990 51,213 Current assets Inventories 2,529 2,531 2,531 Trade and other receivables 4,861 5,339 6,105 Cash and cash equivalents 14,096 8,668 4,144 Non-current assets classified as "Held for sale" 3(a) - 8,017 - _______ _______ _______ Total current assets 21,486 24,555 12,780 _______ _______ _______ Total assets 63,274 66,545 63,993 Liabilities Non-current liabilities Provisions 5,991 5,779 5,519 _______ _______ _______ Total non-current liabilities 5,991 5,779 5,519 _______ _______ _______ Current liabilities Trade and other payables 3,099 4,884 4,322 Corporation tax liabilities 1,224 1,568 586 Non-current liabilities classified as "Held for sale" 3(b) - 1,250 1,250 _______ _______ _______ Total current liabilities 4,323 7,702 6,158 _______ _______ _______ Total liabilities 10,314 13,481 11,677 _______ _______ _______ Total net assets 52,960 53,064 52,316 _______ _______ _______ Capital and reserves attributable to equity holders of the company Share capital 5,075 5,066 5,058 Deferred shares 10,721 10,721 10,721 Share premium 40,798 40,752 40,711 Warrant and share option reserve 1,227 1,292 1,064 Contributed equity reserve 8,111 8,111 8,111 Retained deficit (12,972) (12,878) (13,349) _______ _______ _______ Total equity 52,960 53,064 52,316 _______ _______ _______ Consolidated Statement of Changes in Equity at 30 June 2013 ____________________ Warrant and Deferred Share Contributed share option Retained Total Share capital shares premium Equity reserve reserve deficit equity EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 Balance at 1 January 2012 5,058 10,721 40,711 8,111 729 (13,771) 51,559 Share-based payment - - - - 335 - 335 Income for the period - - - - - 422 422 _______ _______ _______ _______ _______ _______ _______ Unaudited balance at 30 June 2012 5,058 10,721 40,711 8,111 1,064 (13,349) 52,316 _______ _______ _______ _______ _______ _______ _______ Balance at 1 January 2012 5,058 10,721 40,711 8,111 729 (13,771) 51,559 Shares issued 8 - 41 - - - 49 Share-based payment - - - - 563 - 563 Lapse of options - - - - - - - Income for the period - - - - - 893 893 _______ _______ _______ _______ _______ _______ _______ Audited balance at 31 December 2012 5,066 10,721 40,752 8,111 1,292 (12,878) 53,064 _______ _______ _______ _______ _______ _______ _______ Balance at 1 January 2013 5,066 10,721 40,752 8,111 1,292 (12,878) 53,064 Shares issued 9 - 46 - - - 55 Share-based payment - - - - 393 - 393 Lapse of options - - - - (458) 458 - Loss for the period - - - - - (552) (552) _______ _______ _______ _______ _______ _______ _______ Unaudited balance at 30 June 2013 5,075 10,721 40,798 8,111 1,227 (12,972) 52,960 _______ _______ _______ _______ _______ _______ _______ Consolidated Statement of Cash Flows for the period ended 30 June 2013 ____________________ Unaudited Unaudited six months Audited six months ended year ended ended 30 June 31 December 30 June 2013 2012 2012 Cash flows from operating activities EUR'000 EUR'000 EUR'000 (Loss)/profit for the period/year (3,409) 1,757 1,681 Adjustments for: Non cash income (593) - - Depreciation, depletion and amortization 2,163 4,483 2,410 Impairment 1,800 - - Share-based payments expense 393 563 335 Finance income - (463) (17) Finance expense 3 - 55 Tax expense - 1,867 411 Foreign exchange 265 403 42 Unwinding of discount on provision 270 491 91 _______ _______ _______ Cash flows from operating activities before changes in working capital and provisions 892 9,101 5,008 Decrease in inventories 2 2 2 Decrease/(Increase) in trade and other receivables (348) 3,075 2,379 (Decrease) in trade and other payables (1,785) (5,333) (4,901) (Decrease) in provisions/ non-current receivables (22) (305) (311) Taxes paid - (84) (47) __________ __________ __________ Net cash flows (used in)/from operating activities (1,261) 6,456 2,130 Net cash flows from discontinued operations (1,147) 454 - Investing activities Purchase of Property, plant and equipment (167) (211) (1,176) Exploration costs incurred (1,104) (1,525) (439) Proceeds from disposal of 'Asset 8,902 - - for sale' _______ _______ _______ Net cash from/(used in) investing activities 7,631 (1,736) (1,615) Financing activities Issue of new shares - cash received 55 49 - Interest paid (3) (52) (51) New loan draw down - 2,000 2000 Repayment of loan - (2,000) (2,000) _______ _______ _______ Net cash from/(used) in financing activities 52 (3) - _______ _______ _______ Net increase in cash and cash equivalents 5,275 5,171 515 Cash and cash equivalents at the beginning of the period/year 8,668 3,703 3,703 Foreign exchange gains/(losses) on cash and cash equivalents 153 (206) (74) _______ _______ _______ Cash and cash equivalents at the end of the period/year 14,096 8,668 4,144 _______ _______ _______ Mediterranean Oil & Gas Plc Unaudited notes forming part of the consolidated interim financial statements for the period ended 30 June 2012 ____________________ 1 Accounting polices Basis of preparation The interim financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) and in accordance with the Companies Act 2006, as applicable to companies preparing their accounts under IFRS, adopted by the EU. The interim financial statements have been prepared using the accounting policies which will be applied in the Group's statutory financial statements for the period ended 31 December 2013. The Group has accounted for the divestment of a 75% interest of the company owning 100% of the participating interest in the Offshore Malta Area 4 Production Sharing Contract (the 'PSC') as a disposal of a subsidiary resulting in a joint operation under IFRS 11. Therefore, cash received in part consideration for the sale of the 75% interest in the PSC (or for farming out) has been applied as a reduction in the carrying value of the related oil and gas property with any excess accounted for as a gain on disposal. For the purposes of this interim statement, the comparative periods presented are the year ended 31 December 2012 and the six months ended 30 June 2012. The financial information for the period ended 31 December 2012 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2012 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2012 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. Going concern The directors consider that it is appropriate for the interim financial statements to be prepared on a going concern basis. At 30 June 2013, the Group has a net cash position of EUR 14.1m and no outstanding loans or borrowings. Management has prepared cash flow projections which indicate that the Group can continue to meet its liabilities as they fall due and meet minimum spend commitments on its licences for a period of not less than 12 months from the date of authorisation of the interim financial statements. 2 Financial reporting period The interim financial information for the period 1 January 2013 to 30 June 2013 is unaudited. In the opinion of the directors the interim financial information for the period presents fairly the financial position, and results from operations and cash flows for the period and is in conformity with generally accepted accounting principles which are consistently applied. The accounts incorporate comparative figures for the audited year ended 31 December 2012 and unaudited six months ended 30 June 2012. The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. 3 Assets Held for Sale (a) Non current assets held for sale Unaudited Audited Unaudited 30 June 31 December 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 Assets: Exploration and evaluation assets - 8,017 - ========== ============ ========== Income: Gain on disposal 2,754 - - ====== On 21 December 2012, the Group announced that it had signed the two key contracts with Genel Energy plc ('Genel') that enabled Genel's acquisition of a 75% working interest in Offshore Malta Area 4 Production Sharing Contract (the 'PSC'). These contracts were: (1) a Share Sale Agreement which resulted in Genel acquiring 75% of the issued share capital of the Group wholly owned subsidiary, Phoenicia Energy Company Limited ('PECL') on completion, and (2) a Shareholders' Agreement, which governs the operation of PECL in relation to its execution of obligations under the PSC and the rights and obligations of the shareholders of PECL, being Mediterranean Oil & Gas Plc and a subsidiary of Genel. Completion of the Share Sale Agreement occurred on 28 February 2013. Under IFRS, non-current assets are classified separately as 'Held for Sale' in the statement of financial position when their carrying amount will be recovered through a sale rather than continuing use. This condition is only met when the sale is highly probable, assets are available for immediate sale in their current condition, and the management is committed to the sale which should be completed within one year of the classification. Liabilities directly associated with the assets classified as held for sale and expected to be included as part of the sale transactions are correspondingly also classified separately. Property, plant and equipment once classified as held for sale are not subject to depreciation or amortisation. The net assets and liabilities of a disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell. At 31 December 2012, the total carrying amount related to the PSC was classified as 'Held for sale'. The Group has completed its evaluation of the accounting for this transaction under IFRS11 that became effective 1 January 2013 and concluded that all of the carrying amount should not be de-recognised and therefore a gain on disposal of the 75% interest only has been recorded. No tax is expected to arise on this transaction. (b) Non current liabilities held for sale On 6 September 2012, the Group had entered into a sale and purchase agreement with Canoel International Energy Limited ("CIL"), to transfer to CIL and/or its nominated subsidiary, title to the below listed exploration and production gas assets onshore Italy. As part of this agreement the Group was required to pay EUR1.25m to CIL at completion as partial contribution towards future plug, abandonment and site remediation cost for these assets. In June 2013, the Italian Ministry of Economic Development issued preliminary authorisation to CIL and MOG to sign the notarised transfer of the interest to CIL. CIL and MOG received the final decree authorising the transfer from the Ministry of Economic Development on 28 June 2013, as published in the Official Hydrocarbon Gazette on 30 June 2013. These assets are presented in the Consolidated Statement of Financial Position as non-current assets "held for sale" in accordance with IFRS 5 Non-current assets held for sale and discontinued operations and are: -- Masseria Grottavecchia -- San Teodoro; -- Torrente Cigno -- Misano Adriatico -- Sant'Andrea -- Masserai Petrilli -- Masseria Acquasalsa -- Lucera -- San Mauro -- Montalbano -- Serra dei Gatti -- Villa Carbone -- Colle dei Nidi The movements of the discontinued operations in the consolidated statement of financial position can be summarised as follows: Unaudited Audited Unaudited 30 June 31 December 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 Assets Property, plant and equipment - 2,219 2,482 Exploration and evaluation assets - 184 241 Impairment of assets - (2,403) (2,723) Non-current liabilities Decommissioning liabilities - (2,638) (2,717) Release of decommissioning liability - 1,388 1,467 ---------- ------------ ---------- Non-current liabilities held for sale - (1,250) (1,250) ========== ============ ========== The income statement loss on discontinued operations is summarised as follows: Unaudited Audited Unaudited 31 December 30 June 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 Revenue 558 1,150 644 Cost of sales (455) (696) (518) Unwinding of discount on decommissioning provision (125) (259) (129) Depreciation, depletion and amortisation - (44) - Impairment of assets classified as 'held for sale' - (2,403) (2,723) Release of decommissioning liability 125 1,388 1,467 Profit/(loss) on discontinued operations net of tax 103 (864) (1,259) ============= ============ ========== The cash flow on discontinued operations is summarised as follows: Unaudited Audited Unaudited 31 December 30 June 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 Profit/(loss) on discontinued operations net of tax 103 (864) (1,259) Non-cash adjustments (125) 1,015 1,130 Payment to CIL (1,250) - - Unwinding discount 125 259 129 Depreciation, depletion and amortisation - 44 - Net Cash Flows from discontinued operations (1,147) 454 - ============= ============ ========== 4 Earnings/(loss) per share Unaudited Audited Unaudited 31 December 30 June 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 Numerator: (Loss)/Profit (552) 893 422 -------------------- Denominator: Weighted average number of shares for basic EPS 430,233,129 429,211,517 429,117,710 -------------------- Dilutive effect of share options outstanding 6,718,376 4,143,237 0 Weighted average number of shares for diluted EPS 436,951,505 433,354,754 429,117,710 -------------------- EPS per share on continuing operations -basic and diluted (0.15) cents 0.41 cents 0.39 cents EPS per share on discontinued operations -basic and diluted 0.02 cents (0.20)cents (0.29)cents EPS attributable to the equity holders of the parent - basic and diluted (0.13) cents 0.21 cents 0.10 cents -------------------- In the current period the number of potentially dilutive ordinary shares, in respect of Directors and employee share options is 25,712,000 (31 December 2012: 18,842,000; 30 June 2012: 15,571,823). These potentially dilutive ordinary shares may have a dilutive effect on future earnings per share. 5 Segmental reporting In the opinion of the Directors, the operations of the Group companies comprise three operating segments conducting exploration, production, and corporate activities. The Group operates in one geographic area, being Mediterranean Europe. The Group's oil and gas revenues are generated entirely in Italy and result from sales to European based customers. The reportable segments have been identified on the basis that these operating segments form the main identifiable cost centres for the group as reported to the Chief Operating Decision Maker (CODM). The CODM is defined as the Board of Directors. The primary financial statements presented reflect all the activities of these three operating segments. For the Group's operating segments these are the key reportable items: Production Exploration Corporate Total 1 January 2012 to 30 June 2012 EUR'000 EUR'000 EUR'000 EUR'000 -------------------- Total revenues 7,907 7,907 Profit before tax 4,272 (367) (1,813) 2,092 Non-current assets 18,485 30,750 1,978 51,213 Non-current liabilities 3,239 2,176 104 5,519 Production Exploration Corporate Total 1 January 2012 to 31 December 2012 EUR'000 EUR'000 EUR'000 EUR'000 -------------------- Total revenues 16,254 - - 16,254 Profit before tax 5,157 (752) (781) 3,624 Non-current assets 19,804 21,349 837 41,990 Non-current liabilities 3,389 2,278 112 5,779 Production Exploration Corporate Total 1 January 2013 to 30 June 2013 EUR'000 EUR'000 EUR'000 EUR'000 -------------------- Total revenues 5,423 - - 5,423 Profit before tax (652) (688) * (2,069) (3,409) Non-current assets 15,346 24,379 2,063 41,788 Non-current liabilities 3,520 2,364 107 5,991 * The gain on disposal of assets held for sale (refer note 3 (a)) is reported separately on the Statement of Comprehensive Income 6 Other administrative expenses Unaudited Audited Unaudited 31 December 30 June 30 June 2013 2012 2012 EUR'000 EUR'000 EUR'000 These include: Staff costs including directors 2,489 3,606 2,160 Legal costs for the dispute with LGOI (Note 9) 444 165 - 7 Subsequent events In August 2013, the Group's operating asset the Guendalina Field stopped producing from the short string of the Guendalina-3 well ("Gue-3") due to low pressure at the manifold. Post shut-in, the Guendalina Field is producing approximately 34,000 scm per day net to MOG. The operator is evaluating additional remedial operations to restore the production, including the merit of carrying out, as soon as possible, an acid wash in order to clean the string and the well completion with the goal of restoring full production performance. This followed the earlier incident in March 2013 where well GUE 2ss was taken offline due to an influx of water. Following the latest event, management have reviewed the carrying value of the Guendalina asset to ascertain its recoverability based on value in use. A discount rate of 10% has been used in the value in use calculation which has been deemed appropriate given the risk profile of the Group. As a result of this exercise, an impairment loss of EUR1.8m has been recognised as an adjusting event in the interim financial statements. In Italy, the ratification in August 2012 of Decree 83/2012 (the "Decree") relating to offshore exploration and production activities confirmed that restrictions introduced by decree DLGS 128/2010 no longer apply to applications for production concessions that were under review at the time DLGS 128/2010 came into force. As a consequence, the Company resumed the process to procure the award of a production concession at the Ombrina Mare oil and gas field based upon the application previously submitted in December 2008, which had received technical approval in June 2009 and was in the final stages of environmental approval when DLGS 128/2010 came into force. In January 2013, the Company received a positive ruling by the Commission charged with reviewing the Ombrina Mare oil and gas field development Environmental Impact Assessment ("EIA"). In August 2013, given continuing delay to the EIA approval process since that time, the Company's Italian subsidiary Medoilgas Italia S.p.A., filed an appeal (the "Appeal") with the Administrative Court in Rome against the Italian Ministry of the Environment and of Protection of Land and Sea ("MEPLS"). The Appeal is aimed at obtaining the annulment and, as an interim measure, the suspension of the letter dated 9 July 2013 (the "Letter") issued by the MEPLS which has requested the Company to apply for and obtain an Integrated Environmental Authorisation ("AIA") as a precondition for the MEPLS' approval of the EIA for the Ombrina Mare project. As part of the Appeal, the Company has also requested a judicial order to instruct MEPLS to issue the EIA Decree. 8 Capital commitments As at 30 June 2013, the Group has committed EUR1.8m (31 December 2012: EUR2.9m) in operational and exploration expenditure relating to various concessions. The amounts represent the open/ outstanding contracts and purchase orders at the balance sheet date. The Group does not have any exploration or work programme commitments as it has the right to withdraw from its license areas at any stage. The Group's share of planned expenditure for Offshore Malta Area 4 Production Sharing Contract(the 'PSC') as at 30 June 2013 is carried by Genel Energy plc except for the Group's share of the area rental of EUR0.2m that is due under the PSC in January 2014. 9 Contingent liability On 3 January 2013, Leni Gas & Oil Investments Limited ("LGOI") and Leni Gas & Oil plc (collectively, the "Claimants") commenced legal proceedings in the Queen's Bench Division of the Commercial Court of the High Court of Justice in England and Wales (the "High Court"), against Malta Oil Pty Limited ("MOL") and Phoenicia Energy Company Limited ("PECL") (together, the "Defendants"). MOL is a subsidiary of the Company. The Company holds a 25% interest in PECL, as at period end. The proceedings relate to the purchase by PECL of LGOI's 10% interest previously held in the Malta Offshore Area 4 PSC (the "PSC"). The Claimants seek: rescission of the sale agreement dated 31 July 2012 under which LGOI sold its 10% interest in the PSC to PECL, further or alternatively, damages for fraudulent misrepresentation, and interest on any sums which are found to be due. On 25 February 2013, the Defendants filed a Defence with the High Court. The Defendants and the Company's Board of Directors continue to refute the various claims which have been made by the Claimants. The Group will defend itself and the interests of its shareholders rigorously. The outcome of this claim and the potential financial impact cannot be determined at this stage and therefore no provision has been made in the financial statements. The Genel Energy Plc transaction announced by the Company on 21 December 2012, which completed on 28 February 2013 and the proposed Malta work programme are unaffected by this dispute. This information is provided by RNS The company news service from the London Stock Exchange END |
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