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RNS Number : 2345D
Energean PLC
28 June 2021
Energean plc
("Energean" or the "Company")
Rig Contract Signed with Stena for Drilling Campaign, Offshore
Israel
London, 28 June 2021. Energean plc (LSE: ENOG, TASE: ,) is
pleased to announce that its 100% subsidiary, Energean Israel
Limited, has signed a contract with Stena Drilling Limited
("Stena") for its 2022 - 2023 growth drilling programme offshore
Israel, which is expected to target the derisking of unrisked
prospective recoverable resources of over 1 billion barrels of oil
equivalent ("boe").
The contract is for the drilling of three firm wells and two
optional wells, with the first firm well expected to spud in 1Q
2022. The firm wells are all expected to be drilled during 2022,
and consist of:
-- The Karish North development well, a key part of the Karish
North development. The scope includes re-entry, sidetracking and
completion of the previously drilled Karish North well and
completion as a producer. The Karish North development will
commercialise 33 Bcm (1.2 Tcf) of gas plus 31 mmbbls of liquids 2P
reserves (a total of 243 mmboe) and is expected to deliver first
gas in 2H 2023.
-- The Karish Main-04 appraisal well, which is expected to
target further prospective volumes within the Karish Main Block,
including the potential oil rim that was identified as part of the
KM-03 development well drilling. Total unrisked recoverable volumes
estimated to be targeted by the well are 166 mmboe[1] [2].
-- The Athena exploration well, located in Block 12, is situated
directly between the Karish and Tanin leases. Athena is estimated
to contain unrisked recoverable prospective resource volumes of 20
Bcm (0.7 Tcf) of gas plus 4 mmbbls of liquids(1) ; of which the
primary target is estimated to contain unrisked recoverable
prospective resource volumes of 10 Bcm (0.4 Tcf) of gas plus 2
mmbbls of liquids(1) with a 70% geological chance of success(1) .
Success at Athena would be expected to significantly de-risk
approximately 90 Bcm (2.5 Tcf) plus 19 mmbbls(1) of remaining
unrisked recoverable prospective resource volumes located within
Block 12 and Tanin.
Two factors support the commercialisation of a Block 12
discovery. Firstly, Block 12 was a new licence award to Energean
Israel Limited in 2018; produced volumes will therefore generate no
royalty payments in respect of Energean Israel Limited's original
acquisition of the block. Secondly, the more proximate location of
the potential development to the expected location of the Energean
Power FPSO is also expected to reduce like-for-like development
costs when compared with Tanin.
The drilling campaign will be undertaken using the Stena Icemax
drillship, a state-of-the-art ice-class harsh environment
dual-activity dynamically positioned drillship, capable of drilling
in water depths of up to 10,000 ft.
Mathios Rigas, Chief Executive Officer of Energean,
commented:
"We are delighted to be working with Stena again; and this
five-well programme follows the three-well development drilling
programme and 243 mmboe Karish North discovery, all successfully
executed with Stena over 2019 and 2020.
Our five-well growth programme offshore Israel, commencing 1Q
2022, has the potential to double Energean plc's reserve base with
resource volumes that can be quickly, economically and safely
monetised. Combined with first gas from our flagship Karish gas
development project in mid-2022, the next 12-months are set to be
truly transformational for Energean."
Enquiries
Investors, Analysts and Media
Kate Sloan, Head of IR, ECM and Communications +44 (0) 7917 608
645
About Energean plc
Established in 2007, Energean is a London Premium Listed FTSE
250 and Tel Aviv 35 Listed E&P company with operations in nine
countries across the Mediterranean and UK North Sea. Since IPO,
Energean has grown to become the leading independent, gas-focused
E&P company in the Eastern Mediterranean, with a strong
production and development growth profile. The Company explores and
invests in new ideas, concepts and solutions to produce and develop
energy efficiently, at low cost and with a low carbon
footprint.
Energean's production comes mainly from the Abu Qir field in
Egypt and fields in Southern Europe. The company's flagship project
is the 3.5 Tcf Karish, Karish North and Tanin development, offshore
Israel, where it intends to use the newbuild fully-owned FPSO
Energean Power, which will be the only FPSO in the Eastern
Mediterranean, to produce first gas, commencing mid-2022. Energean
has signed contracts for 7.4 Bcm/yr of gas sales on plateau into
the Israeli domestic market, which have floor pricing, take-or-pay
and/or exclusivity provisions that largely insulate the project's
revenues against global commodity price fluctuations and underpin
Energean's goal of paying a meaningful and sustainable
dividend.
With a strong track record of growing reserves and resources,
Energean is focused on maximising production from its large-scale
gas-focused portfolio to deliver material free cash flow and
maximise total shareholder return in a sustainable way. ESG and
health and safety are paramount to Energean; it aims to run safe
and reliable operations, whilst targeting carbon-neutrality across
its operations by 2050. These aspirations were significantly
advanced with the completion of the Edison E&P acquisition in
December 2020, which is now being successfully integrated in
Energean's business.
www.energean.com
[1] Degolyer and MacNaughton estimate.
[2] Estimate excludes D-sand volumes
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