Oil company says Malta has 'multiple potential'

Existing seismic data suggests that Malta has "multiple potential for billion barrel oil discoveries", according to an Australian company which has just completed testing rocks in territorial waters to determine whether there is a possibility of oil being found.

The company, Pancontinental Oil and Gas NL, has just finished a week-long seismic programme to gather information about the rocks surrounding the island. That information will give the Australian experts an indication as to the possibility of oil being found.

Current seismic data suggests the presence of "large individual target structures", which are currently thought to cover an area of 70 square kilometres and ranging from 500 - 700 metres in thickness, the company said. The company's website states that the area has geological similarity and proximity to world-class discoveries in Libya and Tunisia.

Dubbed the "Malta Project", the scheme is being carried out by Pancontinental, Sun Resources NL and Afrex Limited. Initially Pancontinental owned 40 per cent of the project while Afrex owned 60 per cent. Sun Resources then invested $325,000 to acquire 20 per cent of the project.

A spokesman for Infrastructure and Resources Minister Ninu Zammit explained that the project is wholly financed by the Australian companies.

The tests ended yesterday and the spokesman said the results are expected in November or December.

He explained that they will be sent to Perth in Australia for experts to see whether there are signs indicating that there might be oil in the area.

The spokesman said a fibre optic streamer over five kilometres long, as well as airguns strong enough to deeply penetrate the rocks were used to carry out the tests.

He said the tests will provide a better idea of where oil might be found and determine where is the best place to drill an explorative well. Similar tests to the ones carried out by the Australian company have been carried out around Malta over the years but it has so far not been found viable to drill for oil.

Mr Zammit last week visited the Australian ship that carried out the tests. An official from the Oil Exploration Department was on the ship for the duration of the tests. The department, which currently forms part of the Infrastructure and Resources Ministry, previously fell under the Prime Minister's wing.