Energean agrees to farm out 60% interest of Ioannina and Aitoloakarnania blocks in Greece

Energean Oil & Gas has agreed to farm out 60% interest of its Ioannina and Aitoloakarnania blocks, located in onshore Western Greece, to Repsol.

After the completion of this transaction, Repsol will also assume operatorship of these two blocks.

The agreement is subject to the approval of the Government of Greece and the execution of the Aitoloakarnania License Agreement between Energean and the government.

Energean Group chairman and CEO Mathios Rigas said: “We are delighted that Repsol has agreed to farm into Energean’s Ioannina and Aitoloakarnania blocks, which represents a significant step forward for the development of the Greek oil and gas sector.

“Repsol’s expertise and Energean’s knowledge of the area’s geology will undoubtedly drive forward the possibility of making new discoveries in Western Greece, and developing this region as a significant new oil and gas province.”

Repsol intends to conduct a 2D seismic survey over the Ioannina block in 2017 / 2018 and carry out a FTG and a 2D seismic survey over the Aitoloakarnania block in 2018 / 2019.

Rigas added: “Energean has championed and developed Greece's oil and gas sector by producing from the Prinos oil field, through the implementation of low-cost investment programmes and using its own infrastructure.

“The company has a track record of achieving value accretive deals and teaming up with high-quality international partners that operate in the sector.

“Through the development of the recently acquired Karish and Tanin natural gas fields, offshore Israel, together with highly prospective exploration projects in Western Greece and Montenegro, Energean is moving towards the fulfilment of its vision to become a leading independent E&P company in the Eastern Mediterranean.”

The Ioannina and Aitoloakarnania blocks include an area of about 8,547km² and form a part of the Hellinide fold belt, which contain the Ionian Basin and Apulian platforms.

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Image: Energean Oil & Gas sign deal with Repsol to farm out 60% interest in Greek onshore fields. Photo: courtesy of Energean Oil & Gas.