LONDON--(BUSINESS WIRE)--Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce that it has received approval for its Field Development Plan (“FDP”) for the development of the Kataloko field in Western Greece from Hellenic Hydrocarbons Resources Management, the Greek government agency responsible for the hydrocarbon sector in the country.
The FDP application was submitted in February 2017 after Energean secured the 25-year exploitation concession, announced in November 2016, and involves the development of the field through extended reach wells from an onshore location in the area. The $50 million development plan is targeting the 11 mmboe of recoverable oil that was discovered in the early 1980s by the state owned Public Petroleum Corporation, but remained undeveloped for decades.
Energean holds a 100% working interest and is the operator of the block.
Energean plans to develop Katakolo alongside its two other current development projects, the Prinos Oil Field, which is part of the Prinos Concession located offshore North East Greece, and the 2.4 TCF (2C) Karish and Tanin gas fields, offshore Israel, that also received FDP approval by the Israeli Government in August 2017.
Energean will now commence the Environmental and Social Impact Assessment for Katakolo, which will be submitted for approval in 2018. Upon approval, the Company intends to take a Final Investment Decision (“FID”) on the project and drill the first wells in 2019, with first oil expected in 2020.
Commenting on the FDP approval, Energean’s CEO, Mathios Rigas, said:
“After the approval of the FDP for Karish and Tanin by the Israeli Government in August, we are excited to also receive approval of our development plan for Katakolo from the Greek Government. Katakolo is a previously discovered oil and gas field that has so far remained undeveloped. Energean is now unlocking the value of this very important project for the country as well as revealing the potential for wider exploration of the East Adriatic region.
Developing Katakolo is consistent with our strategy to maintain a balanced portfolio of producing and development assets, coupled with low-risk, high-impact exploration potential in the Eastern Mediterranean. We are adding further value for our shareholders through converting a discovered but stranded resource into a valuable commercial project.”