Montenegro sits in the 'sweet spot' of untapped potential in the eastern Adriatic, the chief executive of the Greek firm holding two offshore blocks said, as the company announced a first assessment for the blocks estimated to hold as much as 1.8 trillion cubic feet of natural gas.
Greece's Energean Oil & Gas-the only Greek oil and gas producer-released on Thursday the first Competent Persons Report (CPR) for the two blocks in shallow waters offshore Montenegro, compiled by Netherland Sewell & Associates.
Energean is currently the sole operator of the two blocks with 100 percent working interest in both, after it signed a concession contract with the State of Montenegro in March this year.
Energean's total investment over an exploration period of seven years is expected to be US$19 million, including the funding of a new 3D seismic survey, geophysical and geological studies, and the drilling of one well, the Greek company said back in March. Energean plans to begin the 3D seismic acquisition in the first quarter next year.
The first report on the potentially recoverable resources released today is part of the first three-year-long exploration stage, which includes the 3D seismic survey, as well as and geological and geophysical studies. Energean has estimated the total investment in this initial exploration phase at US$5 million.
Commenting on the resource estimate, Energean's chief executive officer Mathios Rigas said:
"The CPR further suggests that Montenegro sits in the 'sweet spot' of untapped potential in the eastern Adriatic...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 is focused on the Eastern Mediterranean region, which has been a hot spot for gas developments in recent months.
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Energean has nine E&P licenses offshore Israel, Greece, the Adriatic, and onshore North Africa.
At the end of August, Energean received Israel's approval of its Field Development Plan (FDP) for the Karish and Tanin gas fields offshore Israel which combined have 2.7 trillion cubic feet of natural gas and 41 million barrels of oil equivalent of light hydrocarbon liquids. The approval is a major step towards delivering the US$1.3-1.5 billion development on time and on budget in 2020, Energean said.
By Tsvetana Paraskova for Oilprice.com
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