MediterraneanOil&Gas - Drilling Report

RNS Number:7796L
Mediterranean Oil & Gas Plc
15 January 2008

MEDITERRANEAN OIL & GAS PLC
(the "Company" or "MOG")

15 January 2008

Commencement of drilling operations at Grenade-3 well
(St Laurent Permit: MOG 11.154%: Egdon Operator)

The Board of Mediterranean Oil & Gas Plc (AIM: MOG) wishes to announce that the
Operator of the St Laurent Permit in South West France has made the following
announcement:

"The COFOR MAS 3000 rig completed the rig move on 9 January and drilling
operations commenced at 12.00 hours on the 10 January 2008. The Grenade-3
well will take around 30 days to reach target depth.

The Grenade-3 well is an appraisal of the Grenade heavy oil accumulation. The
discovery well, Grenade Sur Adour-1 was drilled by Elf in 1975 and found a 97 m
column of 10o API oil. Between 1976 and 1985 around 8,000 barrels of oil were
recovered from intermittent tests, the well being finally plugged and abandoned
during a period of low oil prices in 1985.

An independent report by RPS Troy-Ikoda in 2004 determined that the oil-in-place
within the structure was in the range of 68 to 485 million barrels (MMStb), with
a Best Estimate of 221 MMStb. During 2005 the group acquired 40km of 2D
seismic and 12km2 of 3D seismic data over Grenade, and by integrating the new
data with both existing reprocessed 2D seismic data and the results of an
extensive regional core study, were able to better define the trap. The
resultant mapped trap is a large three-way up-dip pinch-out of the reservoir on
a low energy carbonate platform. Based on this revised trapping model Egdon have
determined a range of oil in place of 95 to 945 MMStb with a Best Estimate of
300 MMstb.

Grenade-3 is a step-out to the Grenade-1 discovery well and be drilled as a
vertical pilot hole designed to confirm the oil column and reservoir
distribution. Contingent upon the results of this pilot hole a horizontal
sidetrack will be drilled and completed for a long term production test to be
undertaken. The production test would utilise modern completion, pumping and
viscosity reduction methods in the horizontal reservoir interval to determine
the likely recoverable reserves and commerciality of the Grenade oil
accumulation."

In accordance with AIM rules - guidance for mining, oil and gas companies, the
information contained in this announcement has been reviewed and signed off by
the Joint Managing Director of Egdon Resources plc Mark Abbott, a Geoscientist
with over 21 years experience. The technical disclosure in this announcement
complies with the SPE/WPC standard.

Enquiries:

Mediterranean Oil & Gas Plc
Sergio Morandi, CEO Tel: +39 06 474 5756
Tony Trevisan, Executive Director Tel: +44 790 162 4290

WH Ireland Limited
James Joyce / David Porter Tel: +44 (0) 20 7220 1666

Tristone Capital Limited
Nick Morgan Tel: +44 (0) 20 7399 2470

Pelham Public Relations
Charles Vivian Tel: +44 (0) 2077 43 6672
Philip Dennis Tel: +44 (0) 20 7743 6363

This information is provided by RNS
The company news service from the London Stock Exchange
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