Mediterranean Oil & Gas reveals economic potential at Italy well

LONDON (ShareCast) - Mediterranean Oil & Gas on Wednesday revealed "excellent" results from a production test of its Civita 1 well in the Aglavizza concession in Italy.

The AIM listed company said a three-step test on the prospect was completed last week, confirming production potential.

The first stage included a five-hour production flow test which achieved a stabilised flow rate of 50,3000 standard cubic meters (scm) a day with negligible water production.

The second part included another five-hour test which showed a rate of 27,700 scm/day followed by a final stage test which produced a rate of 12,200 scm/day.

The company said the results confirmed excellent permeability and "no near-well bore formation damage".

Dr. Bill Higgs, Chief Executive of Mediterranean Oil and Gas, said: "We are pleased to have successfully completed the production test at Civita 1 and the results confirm the economic potential of this asset. The team is now working towards finalising the development plan for Algavizza ahead of an investment decision in late 2013."

The group said first gas is due in early 2015 at the Aglavizza field.

Shares grew 2.1% to 10.62p at 11:12 Wednesday.