Energean reveals promising gas estimates offshore Montenegro

The CPR suggests that Montenegro sits in the ‘sweet spot’ of untapped potential in the eastern Adriatic, the CEO of Energean, Mathios Rigas said in a statement on Thursday. 

"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," Rigas said.

Energean is currently the sole operator, with 100% working interest, of offshore blocks 4218-30 and 4219-26, covering a surface area of 338 square kilometres in shallow waters. The blocks were officially awarded in March 2017, following the signing of a concession agreement between the company and the Montenegrin government, the Greek company said.

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 $5 million (4.2 million euro), Energean said.

The concession deal was signed by the Montenegrin government in June 2016 and approved by the country's parliament on December 28.

The Montenegrin government called a tender for the exploration of 13 offshore blocks spreading on an area of 3,100 square kilometres in August 2013. In June 2016, the government awarded a contract for four blocks to Italian-Russian consortium comprising Eni S.p.A. and Novatek. 

($ = 0.847179 euro)