Greek oil company Energean Oil and Gas has signed a deal to buy Total’s stake in Block 2, offshore Western Greece.
Energean said the acquisition would provide material exploration opportunities in its core area of the Eastern Mediterranean with limited financial
exposure.
The deal further enhances the future growth potential of Energean’s portfolio and medium-term optionality to deliver value to all of our stakeholders.
On completion, Energean would acquire Total’s entire 50% Working Interest share and operatorship.
Energean’s net remaining expenditure towards satisfaction of the minimum work obligation, which includes 1800km of 2D seismic acquisition and processing is approximately €0.5 million.
"Energean believes this is a highly attractive transaction in the context of the early stage prospectivity identified on the Block," Energean said.
Work to date on the license has identified that Block 2 contains part of a large, potential target comprising of a four-way closure at the Top Jurassic Apulia platform. The prospect is thought to be an analogue to the Vega field offshore Italy, in which Edison E&P operates with a 60% working interest, the company said.
The structure is covered by sparse 2D seismic which could be de-risked through the seismic program that will be acquired as part of the minimum work program. Energean said the new seismic program could significantly de-risk the prospectivity of the license.
The feature straddles the Greek and Italian maritime border with approximately 60% of the prospect within the Block 2 license with the remaining area part in Italian waters.
Edison E&P, of which Energean expects to complete its acquisition of during 1H 2020, as well as holding a 25% Working Interest in Block 2 also participates in the adjacent 84F.R-EL block offshore Italy, pending award.
Post completion of the Edison E&P transaction, Energean will then own a 75% Working Interest in Block 2. Hellenic Petroleum owns the remaining 25% Working Interest.