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.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.