Italy-focused exploration firm Mediterranean Oil and Gas has reported a 42% decrease in production and close to 50% cut in revenues in 2013 compared to the previous year.
The sharp decline by 0.7billion cubic feet to just 1billion was caused by the shut-in of two damaged production wells at the Guendalina gas field in the Adriatic Sea, the firm said in its end-of-year report.
The sale of its 75% interest in offshore Malta Area 4 to Genel Energy and a subsequent entry into new exploration acreage offshore Malta Area 3 Blocks 1, 2 and 3 also impacted negatively on the company’s revenues from sales of gas and condensate and operatorship, dropping the figure from 16.3million euro (£13.4million) in 2012 to just 8.4million euro last year.
The firm also recorded a 4.4million euro (£3.63million) loss from operations – but still ended the year with more cash in the bank than in 2012.
“2013 was a challenging year for the group due to the production problems at the Guendalina Field and the continued delays at Ombrina Mare,” said Dr Bill Higgs, chief executive of Mediterranean Oil and Gas.
“However, we ended the year with no debt and a higher year end cash position of €12.4 million, which will enable us to continue to develop our portfolio.”
The company is looking to drill two exploration wells, explore for prospects on the southern margin of the proven Sicily/Sicily Channel basin and acquire 1500km of 2D seismic offshore Malta in Area 3 in hope to increase its prospective resources by the end of the current year, it said in a statement.
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