Issue link: https://maltatoday.uberflip.com/i/352862
maltatoday, SUNDAY, 27 JULY 2014 News 11 MATTHEW VELLA THE Maltese government has had no contact yet with the new own- ers of the oil exploration company that drilled a well in Maltese acreage offshore, without finding any indica- tion of hydrocarbons. Rockhopper Exploration, a Falk- lands-based exploration firm, ac- quired Mediterranean Oil & Gas just weeks ago on the eve of a drilling operation at the Hagar Qim well in Block 7 of Area 4. Although Rockhopper ascribed "no value" to the well upon acquir- ing MOG for €37 million in May this year, the other licensee in the Hagar Qim well – Genel – proceeded with drilling the well. Instead, Rockhopper speculated that acquiring MOG would give it "access to better exploration assets such as the Monte Grosso explora- tion prospect in the southern Apen- nines region of Italy" and new pros- pects in offshore Montenegro. MOG's and Genel's subsidiaries – Phoenicia Energy and Melita Explo- ration – the operators of the Hagar Qim well, now have a six-month ex- tension to the first exploration phase to evaluate the results of the Hagar Qim well. But the ministry for transport and infrastructure, under whose portfo- lio the Continental Shelf Department falls, is taking heart that Rockhopper had offered MOG shareholders a 'contingent consideration' – more cash – depending on the success of the Hagar Qim well. "The 'no value' given by Rockhop- per Exploration was not related to the petroleum prospects of the area. The fact that Rockhopper is interest- ed in exploration offshore Malta is a good sign which should be encour- aged," a spokesperson for transport minister Joe Mizzi said. Over €8 million was spent just in data collection by MOG before Tony Hayward's Genel was brought in with a 75% share in the licence for Hagar Qim in 2013. Talks for the Rockhopper acquisi- tion started in February this year, with the exchange of confidential in- formation prior to the share acquisi- tion. In March, Hayward estimated a 20% chance of success of Hagar Qim. "Frontier oil exploration always carries a high risk," minister Joe Mizzi's spokesperson told MaltaTo- day. "Phoenicia Energy and Melita Exploration invested large sums of money for this exploration well and such an investment would not have been made if their technical and economic evaluation was not prom- ising." But Mizzi's ministry will not dis- close the rates at which the govern- ment licensed Area 4 to MOG and Genel. "These are commercial terms and the government does not release such terms. However it is important to note that all expenses related with the Hagar Qim well were paid in full by Phoenicia Energy and Melita Ex- ploration, and all the exploration risk was assumed by these companies. The government has been gaining through rentals, administration fees, training and equipment fees as well as other bonuses since the time that the production sharing contract was signed in July 2008." Two companies have visited Malta since the government participated in the annual European Association of Geoscientists and Engineers confer- ence in June, to view oil exploration data. The government also signed an agreement with TGS for seismic data reprocessing, to provide oil compa- nies with better information to eval- uate the offshore acreage. mvella@mediatoday.com.mt Falklands oil exploration firm that acquired Mediterranean Oil & Gas yet to contact government over future of licence offshore Malta Rockhopper yet to make contact with government Secure Investment Secure Investment Issue of Issue of €100,000,000 100,000,000 in in Fixed Rate Fixed Rate Malta Government Stocks Malta Government Stocks (subject to the over (subject to the over-allotment option of allotment option of an additional sum of an additional sum of €80,000,000) 0,000,000) MALTA GOVERNMENT MALTA GOVERNMENT STOCKS STOCKS _______ _______ (i) 2% M % Malta alta Government overnment Stock tock (Fifth Fifth Issue) Issue) maturing in 20 maturing in 2020 20 at at €101.75 101.75 with a YTM of with a YTM of 1.699% 1.699% (which corresponds to an (which corresponds to an annualised annualised rate of rate of 1.706%) 1.706%), and , and _______ (ii) (ii) 4.1 4.1% M % Malta alta Government overnment Stock tock (First First Issue) Issue) maturing in 20 maturing in 2034 34 at at €100.75 with a YTM of 100.75 with a YTM of 4.045% 4.045% (which corresponds to an (which corresponds to an annualised annualised rate of rate of 4.086%) 4.086%), or , or Fixed Rate Malta Government Stocks The Accountant General announces that the price for each Fixed Rate Malta Government Stock offered for subscription by members of the public has been established as follows: Applications Applications open open on on Monday Monday 28 28 th th July July, 2014 2014 at at 8.30 30a.m. and and close close on on the the time time and and dates dates as as hereunder, hereunder, or or earlier earlier at at the the discretion discretion of of the the Accountant Accountant General General: •at at 5.00 00 p.m. on on Wednesday Wednesday 30 30 th th July, July, 2014 2014 for for applications applications by by any any single single and/or and/or joint joint applicants applicants which which in in the the aggregate aggregate do do not not exceed exceed €100 100,000 000 per per person, person, and and •at at 12 12.00 00 (noon) (noon) on on Monday Monday 4 th th August, August, 2014 2014 for for applications applications in in the the form form of of sealed sealed bids bids (auction) (auction). MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID UP MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID UP TO THE DAY OF RE TO THE DAY OF RE-SALE OF STOCK SALE OF STOCK SECURITY SECURITY CONTINUOUS LIQUIDITY CONTINUOUS LIQUIDITY INTEREST EVERY SIX MONTHS INTEREST EVERY SIX MONTHS (The value of the investment may go up or down during the tenor of the Stock) Treasury Department, The Mall Building, The Mall Treasury Department, The Mall Building, The Mall - Floriana Floriana, Malta , Malta (iii) Any combination of the above two Stocks which (iii) Any combination of the above two Stocks which in in the the aggregate shall be aggregate shall be €100,000,000 100,000,000. 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