Energean Announces First CPR Results for Two of Its 100% Owned Blocks, Offshore Montenegro

CPR indicates 1.8 TCF natural gas and 144 mmbbls of unrisked
prospective resources for Energean operated blocks in the underexplored
eastern Adriatic

LONDON–(BUSINESS WIRE)–Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce
the first Competent Persons Report (“CPR”) for its assets offshore
Montenegro, compiled by Netherland Sewell & Associates (“NSAI”),
detailing the recoverable gas and liquids resource estimates in respect
to Energean’s 100% interest in blocks 4218-30 and 4219-26.

The CPR shows the combined net unrisked prospective recoverable
resources (P50) for the two blocks, awarded to the Company earlier this
year, as 1.8 TCF natural gas and 144 mmbbls liquids (438 mmboe in total).

Energean is currently the sole operator, with 100% working interest, of
offshore blocks 4218-30 and 4219-26. The blocks were officially awarded
in March 2017, following the signing of a Concession Agreement between
the Company and the State of Montenegro. The two blocks cover a surface
area of 338 km2 in shallow waters.

The CPR is part of the first three-year exploration phase, which entails
a mandatory work programme including a 3D seismic survey covering the
two blocks that is planned to be acquired in 2018, and geological and
geophysical (G&G) studies. The total cost of this initial exploration
phase is estimated at US$5m.

The CPR is an important step in scoping the potential of the offshore
Montenegro area, which is currently underexplored, despite the fact that
oil and gas discoveries were made during drilling by previous Operators
in the late 20th century, but not commercialised.

Commenting on the CPR findings, Energean CEO, Mr. Mathios Rigas, stated:

“The CPR further suggests that Montenegro sits in the ‘sweet spot’ of
untapped potential in the eastern Adriatic. The area remains
substantially underexplored, despite having what appears to be working
petroleum system with extensive sandstone and carbonate reservoir
development. The western offshore Adriatic has been a prolific
hydrocarbon-producing province for over 50 years for both oil and
biogenic gas and we believe that the same hydrocarbon plays extend into
offshore Montenegro.

“With exploration experience in Western Greece, Energean has
developed a detailed understanding of the area’s geology and is
committed and uniquely positioned to maximise development possibilities
and unlock the region’s hydrocarbon potential.”

ENDS

Contacts

Energean Oil & Gas
Sotiris Chiotakis
[email protected]
+30
6932663877
or
Instinctif Partners
David Simonson /
Laura Syrett / George Yeomans
+44 20 7457 2020