Mediterranean Oil & Gas, which holds a Maltese oil exploration licence for an area south of Malta, is holding fresh talks with Dominion Petroleum about a farm-out deal after shareholders of the latter firm decided against putting up $50 million, which was a condition of an original agreement.
Mediterranean Oil & Gas had, last month, agreed to farm out to Dominion a 75 percent operated working interest in a production sharing contract for four blocks off Malta, according to international reports.
The oil exploration area in question is said to have gross recoverable un-risked prospective oil resources of 115 million barrels of oil with an 18% chance of success.
The exploration period runs until January 2013 with a minimum spend requirement of US$5 million.
MOG anticipates that the 3D seismic survey will cost between approximately US$8 million and US$10 million gross to undertake, which would satisfy the minimum spend requirement.