Mediterranean Oil and Gas has just concluded a drilling services agreement as it moves ahead with plans to drill an oil well by the end of the year.
This area has never been explored but the information we have obtained has given us enough confidence to move ahead with the drilling of two exploratory oil wells
The company has an oil exploration licence in Maltese waters and is expected to start drilling a well in Area 4, situated to the south of Malta.
Chief executive Bill Higgs said the company had reached an agreement with AGR to provide drilling support services.
Åge Landro, executive vice president of AGR’s petroleum services, described the agreement with the Maltese licence holder as “an important award”.
Mediterranean Oil and Gas is expected to start drilling Ħaġar Qim 1 in the last quarter of this year in an area that carries huge prospects.
Dr Higgs had told The Times last year the company was very excited about the seismic data that gave them strong indications the area may contain anything between 130 million and 200 million barrels of oil.
“This area has never been explored but the information we have obtained has given us enough confidence to move ahead with the drilling of two exploratory oil wells,” Dr Higgs had said.
Area 4 is situated in the zone where the sea border with Libya was delineated by the International Court of Justice in 1985.
The oil well is expected to be 2.5 kilometres deep and it will take 60 days of drilling to reach the potentially oil-rich area.
Earlier this year Mediterranean Oil and Gas was granted a one-year extension by the Maltese Government to continue with exploration in Area 4.
The company partnered with Genel Energy last year, securing the finances needed to drill two wells.
Genel Energy committed $30 million to the deal.
ksansone@timesofmalta.com