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BY COSTIS STAMBOLIS
Following the completion of a recent exploratory drilling in the Prinos oil field, off the island of Thassos in the north Aegean, increased oil production has been reported by ‘Aegean Energy’, the company which currently manages the Prinos oil field complex. According to company sources, production from both Prinos and North Prinos fields now totals some 3,000 barrels per day which is three times higher than it was last January. This tripling of production is the result of the successful completion last August of Well PNA-H3 in the Prinos North field.
Back in the ’80s Prinos had reached a daily production of some 30,000 barrels but since then oil flow gradually diminished as the main field became exhausted and no further exploration was undertaken by the then operator, Denison Mines, following government intervention.
According to a company announcement, the new well was drilled to a total measured depth of 4,370m after 135 days of challenging drilling operations due to the geological complexity of the reservoir. PNA-H3 is the longest well drilled in Greece and is now on stream significantly boosting the hydrocarbon production of the company. Reservoir engineers are hopeful that Prinos North may yield even higher output as the field’s pressure is maintained at high levels.
Almost a year ago Aegean Energy, which is backed by Greek shipping funds, became the majority shareholder in Kavala Oil, which employs 280 people and is the operator of the Prinos oil fields and the only hydrocarbon production company in Greece. Aegean’s stated objective is to further develop the Prinos oil and gas fields, the increase of its production and the exploitation of the secondary concession areas which lie south and east of Thassos island. Currently, Aegean Energy is in negotiations with Greece’s Ministry of Development for securing the necessary drilling licences which will enable it to expand its operations in the area.
Last week, the company announced the commencement a new exploratory drilling in the offshore Epsilon field, west of Thassos, in an operation supported by international service company Schlumberger and with a E-85 rig supplied by Ensco International. This is a unique Jack-up rig, staffed by 80 people and operating on a 24 hour basis. The new well is expected to reach a total depth of 5,500 meters and vertical depth of 2,900 meters, while the drilling operations are estimated to last 90 days. Industry sources note that the Epsilon well is the deepest and longest ever drilled in Greece. Standard Chartered Bank is providing a financing arrangement of $50 mln for this drilling project.
On the occasion of the commencement of the new drilling operation, Mathios Rigas, Chairman and Managing Director of Aegean Energy SA, said “Aegean Energy and Kavala Oil enter a new phase of this long term investment, which actually represents a landmark in the realisation of our business plan. Our company has made significant steps towards the effective exploitation of our national resources, in order to secure a safe business environment for the company, as well as for the sustainable growth of the local and national economy. In this aspect, we proceed with a team driven by clear vision, solid expertise and long experience in its sector.”
Company sources estimate that once oil production starts at Epsilon, total production from Prinos will rise above 7,000 bpd with long term prospects for a further climb up to 10,000 bpd. “The current activity at Prinos demonstrates that Greece has significant but unexploited hydrocarbon resources. Unfortunately, the Greek government has failed to grasp the significance of its hydrocarbon potential since Greece remains the most unexplored area in the Mediterranean,” notes a well known oil expert in Athens. Unlike Cyprus, successive governments in Greece have not proceeded, through international rounds or otherwise, to invite international companies to undertake exploration work on a production sharing basis, through PSAs. Greece is currently estimated to hold some 2.0 to 4.0 bln barrels of unproven hydrocarbon reserves.
