The best estimate for one area off Malta where oil exploration may be done has been described as having “great potential” with up to a total of 648 million barrels of oil and with the possibility of a further 218 million more in the pipeline.

This has been officially stated by the company Mediterranean Oil and Gas which holds an exploration study agreement over blocks 4,5.6 and 7 in Offshore Malta Area 4 on the Mediterranean Pelagian Shelf. The area lies to the south of Malta abutting the boundary with the Libyan offshore area 44.

As announced exclusively by this paper last week, the company was last week admitted to AIM, the alternative stock exchange in London.

Its share offer document states: “A small part of the total area has been subjected to 3D seismic and three prospects have been identified in that area. RPS Energy has estimated, for the three identified prospects in Block 7 which have been matured by 3D seismic, to hold on a Best Estimate basis a total of 218.2 Mbbl Net Prospective Oil Resources; 648.1 Mbbl STOIIP, both on 100% basis un-risked.

“The board believes that the area is prospective and wishes to both mature the identified prospects and carry out more regional seismic testing within its permits in order to attempt to identify further prospects within the group’s concession.

The London-based firm raised £11.7m via a placing at 100p ahead of admission, valuing the company at just over £33m as it started trading on the junior market.