Blocks 26&30

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Energean holds a 100% working interest and is the Operator in blocks 4219-26 and 4218-30, offshore Montenegro.The two blocks are located offshore at a water depth of 50-100 metres, close to the Montenegrin coast, near Bar.

According to NSAI CPR, Energean’s prospects at Blocks 26 & 30, are combined best estimate unrisked prospective resources of 143.9 mmbbls of hydrocarbons liquids and 1,766.1 Bcf of gas.

 

144 mmbls liquids un-risked prospective resources
1766 bcf gas un-risked prospective resources

In February 2019, Energean commissioned PGS for the acquisition of a new 3D seismic survey over the two exploration blocks. The PGS Ramform Titan, one of the best seismic acquisition vessels in the world ,deployed 14 geo-streamers, 6.5km for each streamer length, using a triple source array to cover a total area of 338km2 .

The seismic survey started on the 8th of February 2019 and encountered good weather throughout achieving less than 5% downtime.

The survey was completed on the 20th of February  with an excellent HSE record achieving  good quality 3D seismic data. The 3D seismic survey fulfils the commitment to the MHA for both blocks 26 & 30.

The Adriatic Region

The company believes Montenegro may sit in the “sweet spot” of an untapped, under explored potential in the eastern Adriatic

 

The eastern Adriatic remains substantially underexplored, despite having what appears to be all the necessary hydrocarbon-generating components in place as well as the western offshore Adriatic having been a prolific hydrocarbon-producing province for over 50 years for both oil (Italy) and biogenic gas (Italy and Croatia).

The widespread distribution of seeping and oil shows in the region indicate the presence of an active petroleum system. Large prospects and leads, comprising Cretaceous age carbonate reservoirs, have been identified in offshore Montenegro. These are on a par  with recent oil discoveries in northern Albania, such as the onshore Shpirag-2 discovery. To date, over 5 billion barrels of oil in place have been discovered in Albania within this prolific carbonate play.

In addition to the carbonate oil play, the Tertiary age sandstones in offshore Montenegro are considered highly prospective for biogenic gas. The biogenic gas play is prolific in the Po Basin of offshore northern Italy/Croatia, where over 30 TCFGIP have been discovered to date. The play has been proven in the Duresi basin offshore Albania and Italy, but to date only limited exploration drilling has been carried out in offshore Montenegro.

Exploration History

Montenegro covers a total surface area of 21,500km2, including 8,500km2 offshore. To date, only 20 exploration wells have been drilled;16 wells onshore and 4 wells offshore.

Initial exploration activity took place from 1949–1966, which resulted in the drilling of 16 onshore exploration wells by the state company Nafta Crne Gore.

The well locations were chosen primarily using surface geology mapping and are not considered to be optimally located. As a result, no discoveries were made despite the presence of oil and gas shows in several drilled wells.

In 1973, responsibility for exploration for hydrocarbons in Montenegro was taken over by the government-owned Jugopetrol Kotor, which was primarily engaged in downstream activities. In cooperation with foreign oil companies, Jugopetrol Kotor acquired over 10,000 km 2D seismic and 400 km2 3D seismic in the offshore region. In addition, approximately 1,250 km of onshore 2D seismic data was acquired.

One nearshore and 3 offshore wells were drilled between 1975 and 1991. The JJ-1 well (TD at 4,700 metres) found significant quantities of natural gas within the clastic deposits of the Oligocene. The JJ-3 well recovered 183bbls of oil from Cretaceous age shelfal carbonates. Additional offshore wells had significant gas shows in Lower Tertiary sands, but were not tested.

These  offshore wells are not considered to have been fully tested for the potential of the carbonate structures. New stateof-the-art 3D seismic acquisition and processing should enable new prospects and leads to be identified and drilled that were previously unrecognized.

In May 2014, Energean submitted a bid in Montenegro’s First Round for Production Concession Contracts for offshore hydrocarbons exploration and exploitation. The company reached an agreement with the Ministry of Economy of Montenegro in June 2016 and 6 months later the agreement was ratified by the Montenegrin parliament.

Final contract with the Montenegrin Government was signed in March 2017.