Energean signs Licence Agreements with Greek Government for Ioannina and Katakolon blocks

  Energean signs Licence Agreements with Greek Government for Ioannina and
  Katakolon blocks

Business Wire

ATHENS, Greece -- May 14, 2014

Energean is pleased to announce that the Greek Government today signed Licence
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 towards achieving the first oil
and gas production from new licence areas in Greece in over 30 years.

The contracts were signed by Minister of Environment, Energy and Climate
Change, Mr. Ioannis Maniatis, in the presence of the Vice President of the
Greek Government Mr. Evangelos Venizelos, UK Energy and Climate Change
Secretary Mr. Edward Davey and the Ambassador of Canada in Greece Mr. Robert

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 programme for the planned three exploration phases over 7
years, will consist of 2D seismic data reprocessing, geological surveys, new
seismic data acquisition in the 1^st 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

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
(‘ERD’). The €15.6 million investment programme during the two exploration
phases over 5 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 licences expire in 30 years and both contracts are subject to Greek
Parliament ratification.

Energean Oil & Gas Chairman and CEO Mr. Mathios Rigas commented: “We are very
pleased that Energean has been awarded two out of three blocks in the open
door licencing round, as we take the first steps into a new phase of
hydrocarbons development in Greece.

“We firmly believe that there are petroleum systems in the western part of the
country, as a continuation of the same geological features identified in the
Adriatic Plate. Energean has an impeccable track record in operating in
environmentally sensitive areas, and will we will conduct our operations in
Ioannina and Katakolon with the utmost regard for the environment, ensuring
there will be no impact from our activity on the two blocks.

“Building on our revival of production at Prinos, Energean and our staff are
ready to meet the new challenge of working towards achieving oil and gas
production from new areas in Greece for the first time in 33 years. Moreover,
the implementation of our new investment programme which, including Prinos,
will total more than €200 million over the next few years, will demonstrate
that Greek companies are well positioned to both support and benefit from the
recovery of the Greek economy.”


Energean Oil & Gas
Sotiris Chiotakis
International media
Instinctif Partners
David Simonson / Catherine Wickman
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