Energean to drill Karish North exploration well

RNS Number : 3189S

Energean Oil & Gas PLC

25 June 2018

 

For immediate release                                                                                                                                

Energean Oil & Gas plc

("Energean" or the "Company")

Energean to drill Karish North exploration well

London, 25 June 2018 - Energean Oil and Gas plc (LSE: ENOG), the independent oil and gas exploration and production company focused on the Eastern Mediterranean, is pleased to announce that the Board has made the decision to drill an exploration well in the Karish North prospect, offshore Israel, with a planned spud date before end-March 2019, subject to necessary approvals. This will exercise the first of seven optional wells included in the Stena Drilling contract. 

The Karish North prospect is located within Energean's Karish lease and will be drilled immediately prior to the three well development of the adjacent Karish Main field, the Company's flagship gas development project. Gross drilling costs are expected to be between US$15-25 million. The Independent Competent Persons Report¹ for the Karish North prospect estimates gross recoverable unrisked prospective resources of 33.5 BCM (1.2 Tcf, or circa 200 MMboe) of natural gas and 14 MMbbls of light oil. The Karish lease is 100% owned and operated by Energean Israel Ltd, which is 70% owned by Energean.

The decision to drill the Karish North well is consistent with Energean's exploration strategy to target near field prospects where potential discoveries can be quickly and economically monetised.

The Karish FPSO is being built with gas production and processing capacity of 8 BCMA. Energean Israel has forward sold 4.2 BCMA of currently discovered gas volumes, leaving circa 4 BCMA of excess FPSO capacity available for the potential tie-back of future discoveries.

The option to drill additional exploration wells at the end of the development well campaign remains open. Options for a second well include the Karish East prospect in the Karish lease and Prospect 4 in the Block 12 exploration licence, which Energean secured at the end of 2017, following the First Israeli Offshore Bid Round.

Mathios Rigas, CEO Energean Oil & Gas, commented:

"We view Karish North as an attractive near-field exploration opportunity offshore Israel that could deliver significant upside alongside our existing Karish development, for which we have already signed 12 gas contracts and secured 4.2 BCMA of supply over an average period of 16 years. The goal of the exploration work is to identify further easy-to-commercialise resources in the region."

¹The January 2018 Netherland Sewell & Associates, Inc. Independent Competent Persons Report

Enquiries

Energean
Mathios Rigas, CEO Panos Benos, CFO Sotiris Chiotakis (Media Relations)	Tel: + 30210 8174242
Camarco (Financial PR)
Billy Clegg Georgia Edmonds Owen Roberts	Tel: [phone]

About Energean Oil & Gas

Energean is a London Premium-Listed independent E&P company focused on the Eastern Mediterranean region, where it operates in offshore Israel, Greece and the Adriatic and holds 13 licences. The Group has 2P reserves of 51 MMbbls of oil and 6 Bcf of gas and 2C resources of 45.9 MMbbls of oil and 1.7 Tcf of gas across its Eastern Mediterranean asset portfolio.

In August 2017 the Company received Israeli Governmental approval for the FDP for its flagship Karish-Tanin gas development project, where it intends to use an FPSO and produce first gas for the Israeli market in 2021. In Greece, the Company is pursuing an ongoing investment and development programme to increase production from its Prinos and Prinos North oil fields and to develop the Epsilon oil field, located in the Gulf of Kavala, Northern Greece.

Energean has five exploration licences offshore Israel, and a 25-year exploitation licence for the Katakolo offshore block in Western Greece and additional exploration potential in its other licences offshore Western Greece, and Montenegro.

www.energean.com

Glossary

BCM                      billions cubic meters

BCMA                   billions cubic meters per annum

FPSO                     floating productions storage and offloading

MMbbls               millions of barrels of oil

MMboe               millions of barrels of oil equivalent

TCF                         trillion cubic feet

 

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