Energean Oil & Gas says that the Greek government has signed license agreements for the Ioannina and Katakolon blocks with the consortia of Energean and Petra Petroleum for Ioannina, and with Energean and Trajan Oil for Katakolon. This marks an important step toward achieving the first oil and gas production from new license areas in Greece in over 30 years.
Ioannina is an onshore block, located in Epirus, Western Greece, covering an area of 4,187 square kilometers. The area has analogues of proven and producing oil fields in Albania, Italy, and the wider region of the Adriatic Sea, leading Energean to estimate that up to 100 million barrels of oil or 2 trillion cubic feet of natural gas could potentially be discovered. The €32.4 million investment program for the planned three exploration phases over seven years, and will consist of 2D seismic data reprocessing, geological surveys, new seismic data acquisition in the first phase, and the drilling of two wells during phases 2 and 3. The consortium consists of Energean (80% working interest and operator) and Canadian listed Petra Petroleum (20% working interest).
Katakolon is an offshore block, located in Northwestern Peloponnese, covering an area of 545 square kilometers. It is a proven oil field from an exploration well drilled in 1981 by the state-owned company DEP-EKY. Energean estimates 5 million barrels of oil can be recovered from Katakolon. The development plan includes drilling from an onshore location by means of extended-reach drilling. The €15.6 million investment program, during two exploration phases over five years, will consist of 2D and 3D seismic data reprocessing, field development, and environmental assessment studies in the first phase and new seismic data acquisition, if required, as well as the drilling of a production well. The consortium consists of Energean (60% working interest and operator) and UK-headquartered Trajan Oil (40% working interest).
Both licenses expire in 30 years, and both contracts are subject to Greek Parliament ratification.