Energean success at Karish North

Energean has made a significant gas find at its high profile Karish North well. The well reached a depth of 4,880m and encountered a fantastic hydrocarbon column of c.250m

Management guidance of the estimated Gas-in-Place is 1-1.5tcf of which ~875bcf could be recoverable resource (i.e. close to 60% recovery factor).

Further evaluation will now be undertaken to determine the liquids content on the discovery.  The A, B and C sands have been drilled and Energean will now deepen the well to the D4 horizon. Following completion of D4 at Karish North, the rig (Stena DrillMAX) will return to drill the three development wells at the Karish Main development.

Karish North could be developed as a tie-back to the Energean Power FPSO which is located 5.4km from the Karish North well.

The FPSO is designed to handle 8bcm/y and Energean has so far secured 4.2bcm/y of offtake. It is expecting to finalise another 1.1bcm/y shortly, bringing contracted volumes up to 5.3bcm/y. Energean therefore has another 2.7bcm/y of capacity and Energean will look to contract this as soon as it is comfortable that it has more upstream gas volumes to underpin this.

In December 2018, Energean signed a contract with power supplier I.P.M. for 0.2tcf of gas over the life of the contract contingent on the results of the 2019 drilling programme. The result at Karish North significantly increases the chance of such potential supply being converted into firm contracted volumes.

Energean see lots of opportunity to sell more gas, led by the privatisation of Israeli power stations in the period 2019-22 which will open up 4.3bcm/y of demand.

See also: Energean targets Karish North

RBC Capital Markets, Morgan Stanley

Read More

Energean targets Karish North

Energean is in the middle of drilling the Karish North prospect with results expected at the end of April 2019. The prospect is located c.5.4km from the Karish FPSO and is targeting 1.4tcfe. Assuming success and a discovery, Energean believes it would convert into 0.4bcm/y.

The FPSO is designed to handle 8bcm/y and Energean has so far secured 4.2bcm/y of offtake. It is expecting to finalise another 1.1bcm/y shortly, bringing contracted volumes up to 5.3bcm/y. Energean therefore has another 2.7bcm/y of capacity and Energean will look to contract this as soon as it is comfortable that it has more upstream gas volumes to underpin this.

Energean see lots of opportunity to sell more gas, led by the privatisation of Israeli power stations in the period 2019-22 which will open up 4.3bcm/y of demand.

Read More

Energean bearing fruit in the Eastern Med

Energean has published a new CPR highlighting the conversion of 2C resources into 2P reserves at the Karish and Tanin fields. Net 2P reserves for the fields now stands at 298mmboe with 22tcf gas and 32mmbbl liquids (gross) being upgraded. The company’s net 2P reserves including its Greek fields are now at 349mmboe.

A further 0.2tcf gas and 1mmbbl liquids remain in contingent resources relating to the Karish B reservoir and will be upgraded upon successful well production testing.

Energean is now thinking beyond its flagship development project with the recent award of its exploration acreage offshore Israel (Blocks 12, 21-23 and 31). These are estimated to contain 7.5tcf gas and over 100mmbbl liquids prospective resources. This massively enlarges the company’s exploration portfolio beyond the 1.3tcf Karish North prospect being drilled in early 2019. The company has secured an extension on the drilling rig for further exploration drilling should it have matured targets over the next 12 to 18 months.

#Karish #Tanin # Israel #Energean #EastMed #Greece

Read More

Karish and Tanin to supply Cyprus

Energean announced earlier this month that it is seeking approval to build a pipeline from its Karish and Tanin fields to the shores of Cyprus from the Cypriot government. The company has already contracted 4.2bcm p.a. from its fields with Israeli buyers and is progressing with further gas supply contracts. The Karish and Tanin project has already been sanctioned, so further supply contracts are not necessary for FID but will strengthen the commercialisation of the project. Energean’s FPSO once online will have capacity to handle c.800mmcfpd.

There are ample of buyers in the Eastern Mediterranean for gas given gas shortages and growing demand in the region. Cyprus in particular is a country keen to secure more gas as it has just put out a tender for LNG import and Floating Storage and Regasification Unit construction.

Reuters noted that Energean will bid for further supply contracts in Israeli power plants with the coal-to-gas switching initiative providing further opportunities for the company.

Read More

Double success for Energean – IPO and FID

Energean put the East Med on the map this week propelling the region into the headlines.

Energean debuted on the London Stock Exchange at the beginning of this week with its Initial Public Offering and USD460 million of new money putting the company’s market capitalisation at just under USD1 billion. The company’s flagship asset is its 70% stake in the Karish & Tanin gas fields offshore Israel which contain 2.4tcf of gas and 33mmboe of light hydrocarbon liquids. First gas is targeted for 2021. The company also has producing assets in Greece and an exploration portfolio throughout the Aegean region.

In the same week Energean reached Final Investment Decision on the Karish & Tanin development giving the green light to commence the USD1.6 biliion project. USD405 million from the IPO proceeds will be used to fund Energean’s 70% share of the project and partner Kerogen will fund its 30% stake. A USD1.275 billion bank facility will also be used to fund this ambitious project.

Energean has secured long-term gas agreements with some of the largest private power producers and industrial companies in Israel. To date it has contracted for the purchase of a total of 61bcm over a period of 16 years, at an annual rate of c.4.2bcm p.a..

The East Med has become a hot play for gas and Karish & Tanin follow in the footsteps of giant gas fields in the region including Leviathan, Zohr and Aphrodite. Energean is set to become an exciting story to follow as industry interest in the East Med grows and the demand for its gas becomes increasingly important being in the centre of short gas MENA countries and the doorstep of Europe.

Read More