Greece’s Energean announces first results offshore Montenegro

ENERGEAN OIL & GAS

The CPR suggests that Montenegro sits in the ‘sweet spot’ of untapped potential in the eastern Adriatic


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On October 19, Greece’s Energean Oil & Gas announced the first Competent Persons Report (CPR) for its assets offshore Montenegro, compiled by Netherland Sewell & Associates (NSAI), detailing the recoverable gas and liquids resource estimates in respect to Energean’s 100% interest in blocks 4218-30 and 4219-26.

The CPR shows the combined net unrisked prospective recoverable resources (P50) for the two blocks, awarded to the Company earlier this year, as 1.8 TCF natural gas and 144 mmbbls liquids (438 mmboe in total), Energean said in a press release.

Energean is currently the sole operator, with 100% working interest, of offshore blocks 4218-30 and 4219-26. The blocks were officially awarded in March 2017, following the signing of a Concession Agreement between the Company and the State of Montenegro. The two blocks cover a surface area of 338 square kilometres in shallow waters.

The CPR is part of the first three-year exploration phase, which entails a mandatory work programme including a 3D seismic survey covering the two blocks that is planned to be acquired in 2018, and geological and geophysical (G&G) studies. The total cost of this initial exploration phase is estimated at US$5m.

The CPR is an important step in scoping the potential of the offshore Montenegro area, which is currently underexplored, despite the fact that oil and gas discoveries were made during drilling by previous Operators in late 20th century, but not commercialized, Energean said.

“The CPR further suggests that Montenegro sits in the ‘sweet spot’ of untapped potential in the eastern Adriatic. The area remains substantially underexplored, despite having what appears to be working petroleum system with extensive sandstone and carbonate reservoir development,” Energean CEO Mathios Rigas said.

The western offshore Adriatic has been a prolific hydrocarbon-producing province for over 50 years for both oil and biogenic gas and we believe that the same hydrocarbon plays extend into offshore Montenegro.

“With exploration experience in Western Greece, Energean has developed a detailed understanding of the area’s geology and is committed and uniquely positioned to maximise development possibilities and unlock the region’s hydrocarbon potential,” Rigas noted.

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