MOG is almost broke!

The news we have all been waiting for is finally here. Mediterranean Oil and Gas is counting its pennies!

The Abruzzo people recall the CEO Sergio Morandi going on TV in April 2010 telling us that they were going to start drilling in June. Instead, the hundreds of letters of opposition to the Ministry, the Gulf of Mexico oil spill, our protests and Ms. Prestigiacomo's ban on offshore drilling have stopped all of Morandi's grandiose dreams of turning a small oil company into a medium sized one, as MOG boasts on their internal documents and website.

On Spetember 30 2010 indeed MOG announced that it may

seek a sale of assets or the company if funding dries up in the wake of Italy's ban on near-shore drilling.

This is nice talk to tell their investors they are bankrupt and need to sell. This is also nice talk to say the people won, because the ban was imposed not only in response to the oil spill, but also because of so many protests, marches, letters, and communities rising in Abruzzo and Italy against offshore drilling so close to coast.

MOG lost about 5 million euros in six months, compared to 2.5 million in all of 2009.
Their revenue is halved. They claim their reserves from Ombrina Mare are double what they previously estimated but this is a moot point. Why?

BECAUSE WE WILL NOT ALLOW DRILLING OUR WATERS, WHETHER IT IS MOG PETROCELTIC OR ANY OIL COMPANY.

JUST LEAVE US ALONE!

Of course the chairman Michael Bonte-Friedheim is trying to gloss over the truth: he says that

the Italian decree in June banning exploration and production within five miles of the coast had resulted in uncertainty around development of the Ombrina Mare oil and gas field, the group's principal asset.

Sirs, it is not "uncertain", it is ILLEGAL. Do you understand what this means? You can't do it without breaking the law.

The press reports that MOG is experiencing a material adverse effect on its ability to access further funding. Of course, who would want to put their money into an outlawed operation that is also hated by virtually all local residents?

Who would be so foolish Mr. Morandi, Mr Bonte-Friedheim?

Come on, you certainly don't think that people are that stupid! I bet that you yourselves would not invest in such a loosing endeavor!

Count your losses and leave. We don't want you here. Thank you very much - now just disappear.

The ban is official

An FPSO unit similiar to the one oilmen want to build along the Abruzzo coast.
Go drill Ireland!

Dear Mr. Brian O'Cathain of Petroceltic,
Dear Mr. Sergio Morandi of Mediterranean Oil and Gas,
and FYI to Mr. Craig Clark of Forest Oil Corporation

The ban is official!

Starting from today it is illegal in Italy to drill any of your unwanted oil rigs within 5 miles from shore anywhere along the coast, and within 12 miles close to Natural marine reserves.

AS OF TODAY ELSA2 AND OMBRINA MARE ARE OUTLAWED.

Today, August 26th 2010, the law presented by the Minister for the Environment, Stefania Prestigiacomo, comes into effect. The law was proposed after the Gulf of Mexico oil spill and because of huge negative popular sentiment against offshore drilling all over the country. Our efforts to stop you and save Abruzzo have played no small part in this effort. The battle is not over and we will keep hounding you until you go back where you came from and where you belong. We will not let you play games with us.

Your ill-conceived plans of drilling us at 2 or 3 miles from shore are history.

Your plans of placing a fire-spitting processing unit - a permanent ship meant to desulfurize sour crude oil, complete of incineration unit that alone would have spewed 800 tons of petroleum waste a day - are history.

Just gracefully give it up and leave us alone.
We don't want you here.

To PCI investors

"As I understand it, Petroceltic were assured by the Italian Ministry of energy that there were no problems with the issue of permits prior to Petroceltic entering into contractual obligations with others."

NOT TRUE. The Ministry does not assure anything. You think this is a private affair between Petroceltic and the Ministry? The law says that there are 60 days in which people can express their opinions. Well, we the people, including the Catholic church, winemakers, tourism operators, etc etc, we all expressed our opposition. The Ministry cannot ignore us, it is the law.

Who will compensate those companies affected?

When you drill, invest and play dice, there is something called risk. Simply, this was and will be a bad investment for Petroceltic. No one compensates you when you gamble and lose.

"The only concrete news regarding Italy is that they have made a request. To my logic, if a request is made the respondent has the option to say no. And until we know otherwise that might well be the case. Agreed there are mitigating circumstances that were unforeseen when the inital agreement was made."

Yes they made a request, and the people of Abruzzo came back with protests, letters to the Ministry, and marches. There never was an initial agreement. Petroceltic NEVER had permission to drill. They thought it would be easy and that their permits would be rubber stamped, but they left out the most important ingredient: us the people.

All those dates they give you, October 31st, July 1st is just blabber. They have no clue, because we the people don't want their rigs. It has been going on for months.
No is no is no. Another rally will occur on July 25th to protest Petroceltic and MOG.

Bye Bye Ombrina Mare! Bye Bye Elsa!

Ha Ha Ha. Petroceltic just released this press release. They say the oil is 34 API and that they were supposed to start drilling in Q4 2010. What a joke. All over Abruzzo the API index is about 11/12. Just go look up what RospoMare has, and what ENI found on the proposed Miglianico oil field.
Heavy sour. So much so they needed a desulfurization plant.

Mr. O'Cathain, CEO of Petroceltic, DOES NOT EVEN KNOW HOW TO SPELL ABRUZZO RIGHT. Sir, shame on you. There has been no partnership whatsoever and to this day NOBODY wants you here.

Good news for Abruzzo, good news for Italians. Not so good news for oilmen and their investors.

Due to pressure from citizen groups, and due to the disaster that BP has made out of the gulf of Mexico, yesterday June 30 2010, the Italian minister for the environment, Stefania Prestigiacomo, announced that all drilling permits will be suspended sine die and retroactively for all drilling plans within 5 miles from the coast, about 9.2 km. In the case of natural reserves, the limit is extended to 12 miles, about 22 km.

This means that both Elsa and Ombrina Mare, as proposed by Petroceltic and Mediterranean Oil and Gas ARE OUT, since they are well within 9km from shore. Both are at about 5km or 6km from the coast. Both are right in front of the Parco Nazionale della costa dei Trabocchi.

We will keep monitoring and following the situation, since the news just came out yesterday.

But for now: Dear Petroceltic, Dear MOG: take your rigs, your FSPO, your dreams of becoming big players by exploiting the people of Abruzzo, take your oil plans and go hide yourselves!

It is sad that the gulf of Mexico had to turn into the mess it is, for our minister to come to this decision, but it is better than nothing.

Have a nice summer Mr. Sergio Morandi, have a nice summer Mr. Brian O'Cathain.