Energean Oil & Gas has signed US$19 million exploration and production contract with State of Montenegro for two blocks off the Montenegrin coast.
Rigas, Sekulic signing the exploration contract. Image from Energean.
The concession contract is for Blocks 4219-26 and 4218-30, with a seven-year exploration period. The deal also includes including the funding of a new 3D seismic survey, geophysical and geological studies, and the drilling of one well.
The two blocks are close to the Montenegrin coast in the vicinity of the town of Bar, at 50-100m water depth. Energean says it plans to begin the 3D seismic acquisition during Q1 2018.
Energean has already gained approval from the Parliament of Montenegro for the deal. The contract was signed by Montenegro Minister of Economy Dragica Sekulic, and Energean Chairman and CEO Mathios Rigas earlier today (15 March) in Podgorica.
“The Eastern Adriatic has been substantially underexplored to date, despite having similar geology to the wider Adriatic Zone, which is well known for its prolific hydrocarbon systems in Italy, Albania and Croatia, and has been a significant oil and gas producing region for over 50 years,” says Energean.
“Whilst a number of major oil and gas companies left the area during the period of sustained low oil prices, Energean remained committed to pursuing the development of the region, and is now extremely well placed to take advantage of this commitment and focus,” says Rigas.