Industry Trend Analysis - Quick View: Momentum Contingent On Positive Exploration Results - NOV 2017
Implications: Whilst political risk in the region continues to be a concern for investors, it is important to note that hydrocarbon potential in Cyprus is highly prospective, with several world class gas discoveries in the vicinity, including Zohr (Egypt), Aphrodite (Cyprus) and Leviathan (Israel), buoying expectations for additional discoveries. The current drilling programme by Total, Exxon and potentially Eni, will target the adjacent acreage to the highly succesful Zohr resource in Egypt, which lies only 10 kilometers from the Egypt-Cypriot maritime border.
What ' s Next: Whilst the prospectively of Cypriot offshore resources remains high, the viability of the area's southern acreage remains unproven, and thus momentum remains contingent on successful exploration results. If proven to be commercial, the presence of a group of financially robust majors operating in the area is positive for the prospect of subsequently developing gas resources, if sufficient reserves are identified through the current cycle of exploration.
Drilling Targeting Adjacent Gas Success Cyprus Offshore License Blocks
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