Mediterranean Oil & Gas, the central Mediterranean producer, developer and explorer of oil and gas assets, reported the results of an independent valuation of gas reserves at the Guendalina gas field offshore Italy.

The study was carried out by RPS Energy, following the start of gas production at the Guendalina gas field on the Oct. 25 2011, and provides an updated view of potential recoverable reserves and asset value.

All Reserves and Resources volumes shown in RPS's Competent Persons Report have been classified and presented in accordance with the 2007 SPE/WPC/AAPG/SPEE Petroleum Resource Management System.

RPS's CPR shows revised 2P recoverable reserves of 31.2 billion cubic feet (6.2 Bcf net to Mediterranean Oil & Gas), representing an increase of 42 percent relative to the previous pre-development valuation of 22 Bcf (4.4 Bcf net to MOG). RPS also estimates P3 reserves of 40.3 Bcf (8.1 Bcf net to MOG). Further, RPS provides an economic valuation of MOG's 2P net reserves, in which the NPV, using a 10 percent discount rate, is $35.8 million (EUR 27.2 million).

The Guendalina gas field is located 29 miles (47 kilometers) offshore the northeast coast of Italy, in 138 feet (42 meters) of water. The current average gas production from the field is approximately 21 MMcf/day (100 percent basis); 4.2 MMcf/day net to MOG.

"We are very pleased to announce that, following the successful start-up of the Guendalina field last October, daily gas production is meeting our pre-development forecasts," said CEO Sergio Morandi.

"Guendalina's good production rate, combined with RPS's independent valuation which increases our recoverable 2P reserves by 42 percent, is a key milestone for the development of our business plan and significantly increases the company's net production and revenues."

Tags: Mediterranean Oil & Gas Plc