Montenegro
Ulcinj Block 3
Steve Remp meeting with
President Djukanovic of Montenegro
The Montenegrin acreage is 3,100 sq km, located some 50 km west of the capital, Podgorica, and is an offshore extension of a structural trend currently producing substantial oil and gas onshore Albania. It also has geological similarities with the prolific petroleum province currently being exploited on the other side of the Adriatic Sea in the Southern Apennines of Italy.
In May 1998, Medusa (a subsidiary of Ramco) signed an agreement establishing a joint venture company over the block with JugoPetrol Kotor (the Montenegrin state oil company). Towards the end of 2002 JugoPetrol Kotor (“JPK”) was privatised and became a subsidiary of the Greek energy company, Hellenic Petroleum.
Over the last 20 years, in excess of 4,000 km of seismic has been shot over the acreage by other parties. Ramco re-processed this existing seismic and identified drillable structures. Additional 2D seismic completed by Ramco in 2000 firmed up the structures and identified a number of targets ranging from shallow gas to deeper gas to deep oil. Further 3D seismic was shot Q4 2003 over a shallow water area of high potential. Should the area prove commercial, potential markets for gas include Montenegro and Italy.
In our interim statement in September 2006, we announced that the attempts of JPK to re-negotiate concession terms with the Government of Montenegro had reached an impasse. The Government had also intimated its unilateral decision to terminate the concession over the Ulcinj (Block 3). Together with JPK and Hellenic, we are continuing to dispute the validity of this unilateral decision, but at this time no concrete progress has been made and there is no prospect of a short term resolution.
Prevlaka Blocks 1 & 2
Ramco announced the acquisition of the Prevlaka acreage (4,500 sq km), which lies immediately north of the Ulcinj acreage, in October 2004. The work programme on Prevlaka was intended to capitalise on the extensive geological knowledge gained from 3D seismic completed over Ulcinj. However, the future of the concession with respect to the Prevlaka blocks has been threatened by the Montenegrin Government which delayed the work programme beyond the expiry date (31 March 2007) of the exploration period. JPK has made a formal application for an extension to the exploration period and action has been taken by JPK in the Montenegrin Court to have certain administrative decisions of the Government declared invalid.