MOG is sinking fast!

Oil rig and FPSO. MOG wanted to build these beautiful objects 3.5 miles from the Abruzzo coast. Shame on you!


This is hilarious - the people at Mediterranean Oil and Gas can't do simple math!

Back in June 2010, the Italian government passed a law, according to which ALL and ANY oil rig planned within 5 miles from shore, all around Italy, will not be allowed. The ban increases to 12 miles, in the proximity of Coastal or Marine parks.

MOG wants to drill their Ombrina Mare rig off the coast of Abruzzo, complete with an FPSO, an oil processing and storage ship, about 5 kilometers from shore with a mini-desulfurization facility on top of it. The area is close to the Parco Nazionale della costa Teatina and well within the 12 and 5 mile border designated by the law.

The law was passed in the aftermath of the Gulf of Mexico disaster, but also thanks to Italians protesting their government to better protect our waters.

Despite all this, MOG doesn't seem to understand and keeps thinking they can still get away with it. Maybe I have to tell them:

Dear sirs at MOG: 5 miles = 8 kilometers, and that is larger than the 5 kilometers of your oil rigs!
It is crystal clear.

What part of YOUR DRILLING IS ILLEGAL do you not understand?

The people of Abruzzo have spoken, protested and forced their politicians to say no. To this day noone supports the drilling of Ombrina Mare, except those who have vested interests in its construction.

So what business does MOG have, a British company, to still push their agenda?

GIVE IT UP - WE DON'T WANT YOU HERE!
COUNT YOUR LOSSES AND GO SOMEWHERE ELSE!

I know what their problem is, they are about to go bankrupt!

Today an article by Andre Lamberti, in Proactive Investors UK states that MOG is considering a "sale of the company" or the "divestment of certain assets", as suggested by their CIBC consultants, who obviously have no knowledge of Abruzzo, nor do they care.

To them, it is just about money, assets, speculation, drilling, a far away land on a map. To us, it is the beach we go to in the summertime, where the memories of our youth are and that we want to give to the next generation - oil rig free - thank you very much.

According to the same article, the ban has "materially impaired" MOG's ability to raise further funds required to develop its assets, as well as to meet working capital requirements.

They also are asking their loan repayments to be extended past the deadline of September 2011.

In other words: we are driving them bankrupt! They thought they could come here and do as they pleased? You obviously do not know who you are dealing with, sirs!

They continue:

“Negotiations with potential investors are on-going and the company is hopeful that one of the current opportunities will resolve the company's financial position satisfactorily. There can be no certainty that these discussions will result in a satisfactory outcome".

They know it too that they cannot win.

"The company intends to challenge any assessment that the Decree is applicable to Ombrina Mare"

Yeah right - who do you think you are kidding - you are penniless!

Dear Mr. Investor, do the right thing - take your money and run - it is good for your conscience, it is good for your wallet.

MOG is lying to you!

Dear CIBC,

I came across your ad for the sale of Ombrina Mare by MOG. In your ad you FAIL to mention that Ombrina Mare has been declined environmental clearance from the Italian government on October 7th as reported by the Italian media.

I think this information should be disclosed to your investors, and to potential buyers.

This information is all over the Italian news and it is unethical for you not to disclose it.

Ombrina Mare was not approved and will not be developed under current legislation, since it sits well within the 5 mile no-drill zone designated by the Italian ministry of the environment.

Sincerely,

Maria R D'Orsogna

Newspaper reports 1

Newspaper reports 2

Newspaper reports 3

Newspaper reports 4

Newspaper reports 5

Ombrina Mare - RIP

Finally, after MOG declaring that it is close to being broke, another piece of great news.

Ombrina Mare has failed to get clearance from the Committee on Environmental Impact Reviews.

This means the drilling of Ombrina Mare has been officially denied by Italian authorities.

I never thought this would happen, given the level of corruption Italy is notorious for. But we hammered them and protested and wrote and marched as if there was no tomorrow, so that they HAD to stop this project. I am so proud of this victory. In principle, it was Ms. Prestigiacomo's ban that stopped Ombrina. I know it was because of opposition from us the people. Had we been complacent, the project would have gone forward. So kudos to all of us activists.

We will keep closely monitoring the situation, but for now, condolences to Mr. Sergio Morandi, to Mr. Micheal Bonte-Friedheim and to all of MOG's investors.

I had warned you that this was a loosing business investment.

Elsa and Petroceltic, you are next.

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.

Bomba vs. The Forest Oil Corporation

I went to give one of my 'Don't drill Abruzzo' talks the other day in Bomba - population 920 in the wintertime and about 2000 in the summer.

I am so proud of Abruzzo, I am so pround of Bomba. The Forest Oil Corporation of Denver thought that we were just a bunch of ignorant farmers. They thought that we would not fight
their plans to turn us into an oil and gas field. They thought that the promise of puny gas discounts was going to appease us, the people.

They were wrong. They were dead wrong.

I met the most excellent people in Bomba - biologists, geologists and chemists who may live far from Bomba, but who got together in November 2009 and dubunked the entire environmental statement report submitted by the Forest Oil Corporation, headed by Mr. Craig Clark. I also sent in my own review. About 200 people sent letters of opposition to the offices who are supposed to evaluate and approve or reject this plan. We all said no.

What the Forest Oil Corporation wants to do is crazy. There is a fragile dam in Bomba that was built in the 1950s on land that is so geologically unstable, it could not be made in cement. They had to use dirt sloped at a 45 degree angle. There are mudslides all the time, the land is highly seismic. ENI gave up drilling because of subsidence dangers and fears.

It is the craziest place to drill for natural gas.

The Forest Oil Corporation of Denver not only wants to drill several wells about 500 feet from town, they also want to build a refinery. The gas they will extract is sour, full of hydrogen sulfide, a toxic gas that smells of rotten eggs and that at high enough dosages is lethal. The refinery is meant to separate natural gas, mostly methane, from the rest, including H2S.

The rest will go into people's home.

The Forest Oil corporation themselves wrote in their environmental statement that they will exceed legal limits for pollutants. The Forest Oil corporation themselves wrote that winds are such that emissions from the refinery they intend to build will hit the center of town. Everyday for the next 12 years at least. People know this already, because about one year ago the Forest Oil Corporation of Denver was testing their wells and lit an enormous flame that released rotten odor gas that permeated town for three days. People also heard a loud noise and slight tremors.

The Forest Oil Corporation already built a large toxic waste pit, to be filled with all their drilling muds and garbage that comes from underground.

Shameless.

Mr. Craig Clerk of the Forest Oil Corporation, Mr. Brian O'Cathain of Petroceltic, Mr. Sergio Morandi of Medoil and Gas.

Once more.
The entire region of Abruzzo will not let you turn this place into an oil field.
We don't want you here.
Please leave us alone.
If you really must drill, go drill your own communities.

Daily Finance

Today our story is featured on the Daily Finance.

To readers of the Daily Finance, my Italian blog is here. This is how I have been communicating with Italians, on a day to day basis. Most of this battle has been conducted by educating the people about what drilling really means. On occasions I travel to Italy to give talks and try to answer all possible questions. I have been hopping from town to town and had the most heartwarming experiences, from people who were told 'it is just a little stick in the sea', or 'it is not a refinery, just an olive oil processing center'. I have also lobbied hard with the Catholic church to take a stand, with local polticians, with all and any who would listen. So far no oil project has been completed in Abruzzo, and I will not stop until the end.
I have been doing this for the past three years, from my Santa Monica home. The fact that Abruzzo is a community of farmers and fishermen does not mean Big Oil can come and do as they please.
If I can do it from a half a world away, anyone can.

Thanks to Lauren for picking up this story.