Greek energy company Energean announced this morning that according to independent assessments by the Netherland, Sewell & Associates Inc. (NSAI) engineering firm, the Karish and Tanin reservoirs contain a potential of 136 billion cubic meters (BCM) of natural gas - double the initial estimates.
The assessments carried out by NSAI on June 30 2017 indicated 67 BCM in the new natural gas fields and the potential for 69 BCM more. The NSAI report also indicated oil reserves of 33 million barrels and the potential for 71 million barrels more.
Energean said that it planned conducting additional exploratory drilling in the Karish and Tanin fields in order to encourage competition in the Israeli market and reduce energy prices for consumers. The company said that the development drilling will commence in 2018.
Energean, which acquired the fields following the Israeli government's approval of the gas outline development agreement, is competing with the Tamar and Leviathan gas fields controlled by Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL).
This week, Energean announced that it had signed three gas sales deals with Dorad and Edeltech worth an estimated $1 bilion. The average price of these deals was an estimated $4 per thermal unit, about 20% lower that deal signed with the Leviathan partners and 30% lower than the price that Israel Electric Corporation (IEC) (TASE: ELEC.B22) is paying the Tamar partners.
These agreements are bringing Energean closer to the critical amount required if the Greek company is to obtain financing by the end of the year that is needed for the development plan approved by the Ministry of National Infrastructures, Energy and Water Resources in August.
Published by Globes [online], Israel business news - www.globes-online.com - on November 2, 2017
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