Greek explorer Energean Oil & Gas has reached an agreement with the Ministry of Economy of Montenegro upon Hydrocarbons Exploration and Production for offshore blocks 4219-26 and 4218-30.
The proposed concession contract, joint operating agreement and accounting agreement are subject to the approval of the Parliament of Montenegro.
The western offshore Adriatic has been a prolific hydrocarbon producing province for over 50 years for both oil (Italy) and biogenic gas (Italy and Croatia), says Energean.
"By contrast, the eastern Adriatic remains substantially underexplored, despite having what appears to be all the necessary hydrocarbon generating components in place," it says.
"Energean believes Montenegro may sit in the 'sweet spot' of this untapped, under explored potential in the eastern Adriatic.
"The company is familiar with the geology of the wider area, as it has been exploring two blocks, onshore Ioannina and offshore Katakolo, both in Western Greece."