Energean Oil & Gas's exploration license over the West Katakolon field has been converted to a 25-year exploitation license with immediate effect.
The West Katakolon Exploitation area is part of the Katakolon Concession Area and covers 60sq km area with about 10 MMbbl recoverable oil. Energean will be the operator of the field development.
West Katakolon is the third oil and gas field to go into development in Greece, following on from the Prinos oil field and South Kavala gas field, both of which are offshore in the North Aegean Sea. Both fields are operated by Energean.
A field development plan (FDP) for Katakolon will be submitted to the Ministry of Energy by the end of February. Drilling is planned for 2018 and will use extended reach drilling (ERD) technology to drill from onshore to offshore reservoirs.
The FDP for West Katakolon will be Energean’s third offshore plan in process over the next few years alongside those for the 15 MMbbl Epsilon oil field, also in the Prinos concession, and the much larger proven Karish and Tanin gas fields, offshore Israel. Energean recently announced the acquisition of the world-class 2.4 Tcf resource Karish and Tanin fields from Delek Drilling and Avner for US$148 million.
Mathios Rigas, CEO of Energean, commented: “The progression of West Katakolon into its development phase is an important milestone for both Energean and Greece. It will be the first ever hydrocarbon production program in the west of the country and a major boost to the economy following the challenges of the last few years. We are committing to the US$50 million investment in Katakolon, as a first step in seeking to open up the oil and gas opportunities in this highly promising territory – an area with similar geology to the wider Adriatic Zone, well known for its prolific hydrocarbon systems in Italy, Albania and Croatia.
“Energean has up to 5000 b/d production from Prinos. The firm is aiming to increase its production to 10,000 b/d by 2018 through an ongoing US$ 200 million investment program across its portfolio with low break even costs.
The firm has acquired two new licenses in Western Greece, two blocks offshore Montenegro and one more onshore Western Greece, and most recently it purchased the Karish and Tanin gas fields.
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