Mediterranean Oil & Gas an Italian oil and gas company, is in the process of examining and interpreting the results of a new seismic survey in waters off Malta with a view to identifying a site for an exploratory oil well in the Spring of next year, UK equity research firm WH Ireland has reported. The well may be spudded later next year.

MOG has exploration prospects in Italy, Malta, France and Tunisia. They include 80 per cent of Blocks 4 to 7 in Malta's offshore Area 4 covering more than 5,000 sq km in water that is between 250 and 800 metres deep. "The oil and gas potential is massive and is based on analogues of large Tunisian and Libyan fields. The structures are clearly world-class and it is unusual to find a small company with such a big stake in such enormous prospects," WHI Ireland said in a report carried on the MOG website.

MOG earlier this year farmed out an initial 20% stake in the blocks to Leni Gas & Oil. LGO acquired its interest by funding 2D and 3D infill seismic surveys, costing $5m. It can increase its interest to 50% in Area 4 by paying 80% of the cost of the first exploration well. MOG has announced Best Estimate prospective oil in place of 5.71bn barrels.