Oil company hopes to drill off Malta in 2010

International oil and gas explorer Leni Gas & Oil Plc said today that it hoped to start an exploratory oil well south of Malta in 2010 or 2011 after identifying the site with the highest potential for an oil strike. It sees a hydrocarbon potential of 5 billion barrels of oil.

The company said its production sharing contract with the Malta government on its joint venture with Mediterranean Oil & Gas Plc has formally started. This followed the approval of the 2009 work programme last week by the advisory committee for the contract, constituting members of the joint venture and the Ministry of Resources and Rural Affairs.

Leni, which has a 10 percent interest in Area 4, Blocks 4 to 7 in the project, said four prospects and five leads on the 5,700-square kilometre contract area have been outlined. The total most likely hydrocarbon potential of the contract area is estimated at 5 billion barrels of oil.

"The objective of the 2009 work programme is to increase the understanding of the prospect and leads and increase their relative chance of success for identifying the highest potential for drilling in 2010 and 2011," Leni said.

Leni last year started a seismic survey of Area 4 to identify drillable prospects, a proces which is continuing.

Area 4 is located between Libya and Malta.