Energean to acquire Total’s stake in Western Greece

Greece’s Energean Oil and Gas announce on 27 February that it has signed an agreement
for the acquisition of Total’s stake in Block 2, offshore Western Greece, providing further material exploration opportunities in its core area of the Eastern Mediterranean with limited financial exposure.
According to Energean, the deal further enhances the future growth potential of the company’s portfolio and medium-term optionality to deliver value to all of our stakeholders.
On completion, Energean would acquire Total’s entire 50% Working Interest share and
Operatorship. Energean’s net remaining expenditure towards satisfaction of the minimum work obligation, which includes 1800 kilometres of 2D seismic acquisition and processing – activity which Energean believes could significantly de-risk the prospectivity of the licence – is approximately €0.5 million.
Energean said the company believes this is a highly attractive transaction in the context of the early stage prospectivity identified on the Block.
Work to date on the licence has identified that Block 2 contains part of a large, potential target comprising of a four-way closure at the Top Jurassic Apulia platform. The prospect is thought to be an analogue to the Vega field offshore Italy, in which Edison E&P operates with a 60% working interest. The structure is covered by sparse 2D seismic which could be de-risked through the seismic programme that will be acquired as part of the minimum work programme.
The feature straddles the Greek and Italian maritime border with approximately 60% of the
prospect within the Block 2 license with the remaining area part in Italian waters, Energean said, adding that Edison E&P, of which Energean expects to complete its acquisition of during 1H 2021, as well as holding a 25% Working Interest in Block 2 also participates in the adjacent 84F.R-EL block offshore Italy, pending award. Post completion of the Edison E&P transaction, Energean will then own a 75% Working Interest in Block 2. Hellenic Petroleum owns the remaining 25% Working Interest.