Mediterranean explorer Energean Oil & Gas praised the “untapped potential” of its two blocks offshore Montenegro, which may hold 1.8 TCF of gas and 144 MMboe of liquids (438 MMboe in total), according to a new report by Netherland Sewell & Associates (NSAI).
Energean owns 100% interest in blocks 4218-30 and 4219-26, which were awarded in March this year. The blocks cover 338sq km in shallow water (50-100m), in the eastern Adriatic Sea, offshore the southwest side of the country.
The Greece-based explorer said the NSAI report is part of a three-year exploration phase, which includes a 3D seismic survey set to begin Q1 2018 over the two blocks. Energean estimates the initial exploration phase to cost US$5 million.
“The [competent persons report] further suggests that Montenegro sits in the ‘sweet spot’ of untapped potential in the eastern Adriatic,” said Energean CEO Mathios Rigas. “The area remains substantially underexplored, despite having what appears to be working petroleum system with extensive sandstone and carbonate reservoir development.
“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.”
Energean holds interest in the 37 MMbbl (2P) Prinos license offshore Greece, and its Israeli subsidiary (a 50-50 partnership between Energean and Kerogen Capital) holds 100% interest in the Karish and Tanin fields offshore Israel.
Energean is not alone in wanting explore offshore Montenegro. Italian explorer Eni signed a concession for four offshore blocks 4118-4, 4118-5, 4118-9 and 4118-10 back in September 2016. Eni has a 50-50 partnership with OAO Novatek for the blocks, which span 1228sq km.
Image from Energean.
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