Genel Energy PLC has completed the acquisition of 75% of Mediterranean Oil & Gas PLC’s shareholding in Phoenicia Energy Co. Ltd., which owns exploration rights to Area 4 offshore southeast of Malta.
Consideration is an immediate $10 million cash payment, a full carry of the cost of Hagar Qim-1, the first exploratory well, and a full carry of the cost of a second exploratory well up to a maximum of $30 million gross expenditure.
Hagar Qim-1, to be operated by Mediterranean Oil & Gas, is planned to be drilled to a minimum depth of 2,500 m starting in late 2013 (see map, OGJ, Feb. 13, 2006).