Mediterranean Oil & Gas Share Discussion Threads

[whiskeyinthejar] 27/5/2014 10:44

FWIW.
"Hayward added that he sees a one in five chance of success in Malta."

[glyn10] 27/5/2014 09:04

RNS Number : 0108I

Mediterranean Oil & Gas Plc

27 May 2014

27 May 2014

Mediterranean Oil & Gas Plc

(the "Company" or "MOG")

Offshore Malta Update

MOG is pleased to announce that it has received formal notification from Phoenicia Energy Company Ltd (a wholly owned subsidiary of Genel Energy plc), the operator of Malta Block 7 of Area 4, that the semi-submersible rig 'Noble Paul Romano' has been secured on location and that the Hagar Qim 1 well spudded at 08:00 hours on 24 May 2014. The well, located approximately 130km south of Malta in c.450m of water, is anticipated to take a minimum of 2 to 3 months to complete operations.

The Hagar Qim well is the 11(th) well to be drilled offshore Malta. The last exploration well that was drilled was the Lampuko well in 2002.

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:

Mediterranean Oil & Gas Plc Tel: [phone]
www.medoilgas.com 2322
Bill Higgs/Chris Kelsall
Liberum Capital Limited Tel: [phone]
(Nominated Adviser and Joint Broker) 2222
Clayton Bush/Tim Graham/Ryan de Franck
RBC Capital Markets (Joint Broker) Tel: [phone]
Matthew Coakes/Jeremy Low/Jonny Hardy 4000
FTI Consulting (Public Relations) Tel: [phone]
Ben Brewerton/Alex Beagley/James Styles 1000


This information is provided by RNS

The company news service from the London Stock Exchange

END

[hamlette] 26/5/2014 21:04

Malta Offshore oil well faces new spudding delay...

[lak342] 26/5/2014 19:39

Rockhopper Exploration surprises shareholders with purchase of Mediterranean Oil & Gas by the Contrarian Investor

[ohisay] 23/5/2014 14:21

FTA today.

Westhouse says ....
This is an interesting move, which might jolt some shareholders. RKH management must be hugely frustrated with the pace of progress in the Falklands and the strategic uncertainties around Premier Oil's management situation. RKH has c.$250m in the bank (and is effectively carried for its capex obligations on Sea Lion) and so I actually think is a reasonably sensible move. It is a small acquisition, but is cheap ($1.60/boe of 2P+2C resource) and gives RKH exposure to an increasingly interesting and prospective province (Mediterranean).

RKH is the cheapest stock in our E&P coverage universe relative to core NAV (trading at a 68% discount). We maintain our recommendation and target price.

Malcys comment

I will write up the story in much more detail in the next few days but I have spoken to all sides in the deal and it appears to be good for both sides if that is possible. Although it would never have been what MOG wanted, I think that with all the recent problems on Guendalina which took their toll on the share price, and whilst not being short of cash they were not funded enough to put the scale of capital needed behind their biggest projects. Certainly Rockhopper can handle that side of it and they will be able to fund wells on Ombrina Mare and Monte Grosso to kick start the programme. The portfolio can be worked with this investment and more if needed but it wont affect Rockhopper's overall financing plans unless they beef it up a lot and that is at their option.

I think that for a company looking to diversify from the Falklands like Rockhopper is this is quite a wise move and at $1 a barrel hardly expensive or an undue risk. With MOG's cash it will less that 5% of RKH's market cap, dilution is only 2.7% and is a good starter pack for a potential investment in the Mediterranean and North Africa. With the Malta well going down at the moment they have put nothing in the valuation for that and will compensate MOG shareholders if it comes in, so the risk that would have been quite substantial for them alone is mitigated.

I had been to see Bill Higgs very recently and was, as you know about to write up the notes of my meeting. My conclusions were that for the next few weeks the shares would be at the mercy of the Malta well which, with only a 12% COS, might have played havoc with the share price. I had a target of 10p a share as I tried to mix my long-held concerns about the Italian regulatory morass with the potential in at least two of the assets in the portfolio.

- See more at:

I bought a few more MOG this morning - the extra cost to buy should be covered by some near term rerating in the RKH price which strikes me as being very undervalued - plus there's the possibiliity of that extra payout as well as a competing offer.
Having bought recently at 4.3p I've nothing much to lose.

[rayrac] 23/5/2014 14:04

Rotors 23 May'14 - 09:06 - 7453 of 7457 0 0

Why not a shout from Genel? They have an interest after all...


Sorry, I meant Genel, not Cairn! Old age caught up.:(

[ohisay] 23/5/2014 11:52

Its quite tempting to pay an "extra" .175p (6.675p-6.5p)for a maximum upside of 3.55p if they find a gross field of around 110m boe.
The minimum 80m boe field size would get you an extra 2.63p.

Sub 80m of course you'd get zippo which strikes me as appalling..

With this offer you also get some leverage with the RKH shares of course but then you could just buy them in the open market if you thought them cheap.

[jamiedodge] 23/5/2014 11:33

Would now be a good time to buy MOG shares. Soon you get parts mog/money back with a chance of an extra 3,55p for nothing. Or am I reading it wrong.

[ohisay] 23/5/2014 09:57

Its certainly a good deal for RKH - I wouldn't be at all surprised if there's a counter bid .


Analysts at London-based investment bank Westhouse Securities described the takeover as a "reasonably sensible" move. In a brief research note Friday morning they wrote:

"It is a small acquisition, but is cheap and gives [Rockhopper] exposure to an increasingly interesting and prospective province."
- See more at:

[apfindley] 23/5/2014 09:23

Looking good here at MOG.Dont forget to take a look at OXS Oxus Gold too..£11mill mkt cap vs $440m-$1.2bn arbitration claim about to be settled in OXS favour. Get ready for the fastest multibagger youve ever witnessed.

[rotors] 23/5/2014 09:06

Why not a shout from Genel? They have an interest after all...

[glyn10] 23/5/2014 09:00

Not particularly excited to be honest. A good deal for RKH though, I was hoping for circa 15p. I only hope that this will maybe encourage a counter offer. Carin Energy maybe??

[ohisay] 23/5/2014 08:47

Its a good deal for RKH .If there's a Malta find the 3.55p contingent payment is capped at a field gross of 110m boe 2C .The prospective resource was higher depending on whether you believe MOG or Genel.
So effectively just over 10p to MOG on success - I was kind of hoping for 12p to 15p.
Still you get some undervalued RKH shares thrown in.

Makes the AGM look like a complete waste of time of course.

[gripton] 23/5/2014 08:40

"In addition". What is the "contingent" payment of 3.550.
Can anyone explain?

[gurp] 23/5/2014 08:38

& also:
In addition, under the terms of the Acquisition, MOG Shareholders will receive a contingent entitlement up to a maximum amount of 3.550 pence in cash for each MOG Share (the "Contingent Consideration Offer") ..............

· The availability of the Contingent Consideration Offer, and the amount of cash which may ultimately be payable in connection therewith (the "Contingent Consideration"), will be determined by the success of an exploration well targeting the Hagar Qim prospect in Offshore Malta Area 4, Block 7 (the "HQ Prospect"). The Contingent Consideration Offer is intended to afford MOG Shareholders an opportunity to benefit from the potential success of the HQ Prospect.

[rayrac] 23/5/2014 08:35

Cairn might take an interest?

[joestalin] 23/5/2014 08:28

I will take the RKH shares - they are probably getting free money.

[oregano] 23/5/2014 08:13

it is undoubtedly the right thing to do. look at the presentation from the agm. there were two catalysts this year, we still get paid out on one of them. they were no longer covering their costs with cashflow, and they were subscale with no chance of raising further capital which they would need if they got ombrea mare going. i'm sure everyone would like more but i guess there largest shareholders wanted some liquidity. imagine malta was a dud, this would have hit 3p

[rayrac] 23/5/2014 07:50

Seems miserly to me, because I'm here for the Malta drill. But!!

[joestalin] 23/5/2014 07:44

Rockhopper RNS out - takeover at 6.5p anyone?

[ohisay] 21/5/2014 15:27

Didn't seem much new to me TBH.

Broker NAV buried in here.

[partner] 21/5/2014 13:31

anybody care to make comment on agm ? or presentation.

[rayrac] 21/5/2014 06:49

We are very excited about Hagar Qim and look forward to the imminent spud of this high-impact frontier exploration well. We will update shareholders once the results are known."

What a strange statement? Surely they will tell us when they have spud the well, not just the result?

Is there any forecast for how long the drill to TD will take?