The Board of Mediterranean Oil & Gas reports a significant increase in 2P oil reserves in the Oligo-Miocene carbonate reservoir of the Ombrina Mare field to 40 MMbbls. The reserves were certified by the independent reservoir engineers, Studio Ingegneria Mineraria ('SIM'). The new certification represents a 100% increase relative to the June 2008 2P oil reserve certification by SIM (20 MMbbls).

Under the SIM certification, the 2P recoverable oil reserves of the Ombrina Mare field (MOG 100%, and Operator) are distributed as follows: Proven oil reserves (P1): 12 MMbbls Probable oil reserves (P2): 28 MMbbls 2P (Proven + Probable) oil reserves: 40 MMbbls

Sergio Morandi, the Company's CEO, stated,'We are extremely pleased with the updated certification of the proved and probable reserves at the Ombrina Mare oil and gas field. The increase in proved reserves to 12 MMbbls and 2P reserves to 40 MMbbls doubles the initial analysis and confirms the field's critical mass. The new oil reserve numbers establish the Ombrina Mare field as a significant European oil project and further confirm MOG's technical ability to operate and progress this important project.

Our discussions with financial institutions continue, and we aim shortly to select a banking advisor to assist with the analysis of financing options. Further, MOG is progressing activities to secure final approval of the field development plan on the current timetable, which foresees the grant of the production concession by the end of this year.'

A major component of the revised certification is the further development of a detailed 3D geological model, which represents the current 'geological most likely case' and incorporates analysis of all data made available from the above studies.

The Company is continuing with further technical studies of the Ombrina Mare field. The reprocessing and inversion of the Ombrina Mare 3D seismic is being conducted, to increase the imaging of both the oil and gas reservoirs, as well as the accuracy of the seismic interpretation and the conversion in depth. In addition, formation evaluation, bio-stratigraphic and facies analysis are also being progressed to further refine the knowledge of the reservoir.

The reserves upgrade represents a recalculation of the Oligo-Miocene 2P oil reserves based on the above studies. There is no migration from contingent oil resources, previously calculated by the Company, to the revised 2P oil reserves. However, in light of the revised certification, the Company will also re-assess its contingent oil resources and will advise the market of any changes.

Tags: Mediterranean Oil & Gas Plc