First production from the Guendalina gas field is expected in late September 2011.
It is believed that net revenues to MOG will be about EUR12m ($17.28m) per annum, based on anticipated production of approximately 20mmcf/day (20% net to MOG) and forecast gas prices.
The term of the contract is one thermal year, commencing from 1 October 2011, and is automatically renewed by a further year unless terminated by either party.
MOG CEO Michael Bonte-Friedheim said the contract’s flexibility allows MOG to manage possible variations to the development plan that might emerge, substantially mitigating its volume and price risk.
MOG holds a 20% interest in the Guendalina gas field, while Italy-based oil and gas firm Eni holds the remaining 80% stake and is the field’s operator.
