Mediterranean Oil & Gas Plc has reached a critical milestone in the approval process for the Ombrina Mare Oil and Gas Field development.

The Company has been advised that the Italian Ministry for Economic Development’s Interministerial Committee for Mineral Research (CIRM) has approved the technical aspects of the Company’s application for Production Concession d30 BC MD. Formal documentation from the Ministry is expected shortly.

The Company’s wholly owned subsidiary, Medoilgas Italia S.p.A., owns 100% of Production Concession application d30 BC MD. The production concession application is for an offshore area of approximately 150 sqkm in the central Adriatic Sea and covers the Ombrina Mare Oil and Gas Field in which independent reservoir engineers have certified to date 2P reserves of 20 MMbbls oil and 6.5Bcf of gas.

The CIRM has provided favourable advice to the Ministry for Economic Development on the field development plan (“FDP”), investment plan and development work programme that the Company submitted to the Italian authorities with the production concession application. The CIRM’s approval of the technical aspects of the application is a pre-condition to submitting the proposed development for environmental approval and a critical milestone in the approval process.

The Company is well underway with preparing an environmental impact assessment study of the proposed development and now anticipates being in a position to submit the study to the Italian Ministry for the Environment during the next quarter.

Notification of the CIRM’s approval of the technical aspects of the application means the Company remains on its timetable for completion of the development approval process for the Ombrina Mare Oil and Gas Field by the third quarter 2010.

Tags: Mediterranean Oil & Gas Plc