As a result of the concession award and as per the timelines provided to Mediterranean Oil & Gas by ENI, the company expects ENI to start development activities on the Guendalina gas field in January-February 2010.
The construction and installation of the production platform is scheduled to be completed in 2010. The drilling of two development wells is planned in the first half of 2011 and the gas production and associated revenues are expected to commence prior to the end of June 2011.
ENI is currently completing the review of the required development capital expenditure for the project and has informed Mediterranean that it expects an increase in costs compared to previous estimates provided by ENI. The company expects that ENI will confirm the updated development capital expenditure by the end of January or early February 2010.
The company said that based on the studies performed by ENI, the aggregate gas production from the field is expected to be around 20 MMcf/d (100% basis). The company has a 20% interest in the Guendalina gas field which has independently certified 2P gas reserves of 22 Bcf (100% basis).
