Eni Finding Ways to Resume Production at Guendalina 3 (Italy)

Mediterranean Oil & Gas Plc provides the following update on operations to restore production at Guendalina 3 short string (“GUE-3ss”), offshore Italy. To remind, production from the well wash shut on August 30 due to a sudden reduction in production performance.

The Company’s wholly owned subsidiary, Medoilgas Italia S.p.A., was informed by the operator, ENI, that following nitrogen being pumped into GUE-3ss on Friday 13 September the production string was re-opened, producing up to a gross rate of 60,000 scm/d of gas for approximately 10 hours with reasonably stable flowing pressures, before being closed again due to the probable formation of hydrates inside the production string.

The results demonstrate that the reservoir remains in good condition in terms of pressure and absence of formation water, and issues with the production performance are most likely due to the plugging of the well completion.

Today the production from GUE-3ss remains shut-in. The operator is evaluating additional remedial operations to restore the production, including the merit of carrying out, as soon as possible, an acid wash in order to clean the string and the well completion with the goal of restoring full production performance.

Post shut-in, the Guendalina Field is producing approximately 34,000 scm/d net MOG (~216 boe per day) (MOG: 20%, ENI: 80% working interest).
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Press Release, September 18, 2013