Exploration activities

Actual exploration activities are expected to take up six months, per exploration block, of the five year allowable exploration period.

Exploration activities are the pursuit of hydrocarbon resources. License awardees have a five year exploration period with potentially two extension periods of six month to explore an awarded block for potential hydrocarbon resources. Usually license awardees commence their exploration activities with seismic acquisition. It is expected that during the exploration period the license awardees will acquire 3D seismic as well as drill wells. Considering that 3D seismic acquisition of individual blocks should take a maximum of two months and drilling a well a maximum of four months overall exploration activities during the five year exploration period should not exceed six months per block.

Usually during the first year of the exploration period seismic acquisition is conducted. It can then be expected that a good portion of the second and third years are devoted to interpretation and analysis of the newly acquired seismic data as well as selection of drill prospects and ultimately tendering and preparation for drilling. Whereas drilling can be expected in the fourth or fifth year of the exploration period. If drilling results in a commercial discovery of oil and/or gas it is technically possible to commence with production activities under certain strict conditions. For example, it is necessary to perform an environmental impact assessment defining the conditions under which production is possible and if production is possible.

Željka Rukavina