Energean Oil & Gas, an exploration and production company based in Greece, has reached an agreement for two blocks offshore Montenegro.

The company reached the agreement with the Ministry of Economy of Montenegro for hydrocarbons exploration and production in offshore blocks 4219-26 and 4218-30. The proposed concession contract, joint operating agreement and accounting agreement are subject to the approval of the Parliament of Montenegro.

According to Energean, the western offshore Adriatic has been a prolific hydrocarbon producing province for over 50 years for both oil (Italy) and biogenic gas (Italy and Croatia). By contrast, the eastern Adriatic remains substantially underexplored, despite having what appears to be all the necessary hydrocarbon generating components in place, Energean said.

“Energean believes Montenegro may sit in the “sweet spot” of this untapped, under explored potential in the eastern Adriatic,” the company added.

The company also stated that it is familiar with the geology of the wider area, as it has been exploring two blocks, onshore Ioannina and offshore Katakolo, both in Western Greece.