Greek oil company Energean Oil & Gas has informed that the first competent persons report (CPR) for its assets offshore Montenegro indicated 1.8 tcf of natural gas and 144 mmbbls of unrisked prospective resources.
Energean said on Thursday that the CPR was compiled by Netherland Sewell & Associates, detailing the recoverable gas and liquids resource estimates in respect to the company’s fully-owned blocks 4218-30 and 4219-26.
According to the company, the CPR shows the combined net unrisked prospective recoverable resources (P50) for the two blocks at 1.8 tcf of natural gas and 144 mmbbls of liquids, 438 mmboe in total.
The two blocks were awarded in March 2017, following the signing of a concession agreement between the company and Montenegro. The blocks cover a surface area of 338 km2 in shallow waters.
Energean added that the CPR was a part of the first three-year exploration phase, which entails a mandatory work program including a 3D seismic survey covering the two blocks that is planned to be acquired in 2018, and geological and geophysical studies. The total cost of this initial exploration phase is estimated at $5 million.
“The CPR is an important step in scoping the potential of the offshore Montenegro area, which is currently underexplored, despite the fact that oil and gas discoveries were made during drilling by previous operators in the late 20th century, but not commercialized,” the company said.
Energean CEO, Mathios Rigas, said: “The CPR further suggests that Montenegro sits in the ‘sweet spot’ of untapped potential in the eastern Adriatic. 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.
“With exploration experience in Western Greece, Energean has developed a detailed understanding of the area’s geology and is committed and uniquely positioned to maximise development possibilities and unlock the region’s hydrocarbon potential.”