Energean Oil and Gas plc (LSE: ENOG, TASE: ENOG) notified the Tel Aviv Stock Exchange this morning of the results of its appraisal drilling in the Karish North Discovery in Israeli waters. Energean says that the drilling confirms a best estimate of recoverable resources of 0.9 Tcf (25 BCM) of natural gas plus 34 million barrels of light oil/condensate. The company says that this significantly enhances its discovered resource volumes across its Karish and Tanin leases. The volumes announced today are incremental to the 2.4 Tcf (68 BCM) and 33 million barrels of light oil/condensate discovered resources that Energean already has in its Karish and Tanin leases.
"The appraisal results further enhance the likelihood that the 0.4 BCMA I.P.M Beer Tuvia contract will be converted into a Firm Gas Sales and Purchase Agreement (GSPA), which will increase firm contracted volumes to 4.7 BCMA. Energean has also recently signed a Term Sheet with MRC Alon Tavor Power, Ltd., the winning bidder of the Alon Tavor tender. Future GSPAs will target both the growing domestic market and key regional export markets," Energean states in its announcement. The Stena DrillMax rig will now move to complete the three Karish Main development wells.
Energean recently obtained licenses for four additional marine exploration areas. In the past, the company spoke of the possibility of further exploration drillings in structures in its original blocks, but it has yet to announce firm plans in this regard.
Energean CEO Mathios Rigas said, "This is an excellent result from the Karish North appraisal sidetrack, confirming in place volumes in the top half of pre-drill estimates and increasing our recoverable volumes in Israel by 0.9 Tcf (25 BCM) of gas plus 34 million barrels of light oil or condensate. Today's news delivers upon another commitment that we had made to our shareholders, and the successful results allow us to continue our gas marketing efforts in the region with a goal to fully utilize the capacity of our 8 BCMA FPSO. Our focus now remains on closing the Edison E&P acquisition, in parallel with progressing the Karish development."
Published by Globes, Israel business news - en.globes.co.il - on November 4, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019