Uchenna Izundu
International Editor
LONDON, Feb. 28 Mediterranean Oil & Gas PLC has bought JKX Italia Ltd., a wholly owned subsidiary of JKX Oil & Gas PLC, for €2 million from existing cash reserves to build up its Italian acreage portfolio.
It will rename the company Medoilgas Civita Ltd.
JKX Italia has upstream interests in a development permit application, three exploration permits, and one exploration permit application onshore Italy.
Mediterranean Oil estimates that the D'Aglavizza concession alone has proved and probable reserves of 1.3 bcf of gas, with production start-up scheduled for 2009.
"The mature prospects in the two exploration permits have best estimate resources of 10 bcf," the company said.
JKX said it sold its Italian unit because it was not a core asset.
Contact Uchenna Izundu at [email protected]
