Energean plc (LSE: ENOG, TASE: ENOG), which recently began producing gas from the Karish reservoir offshore from northern Israel, has announced a commercial gas discovery of 13 bcm (billion cubic meters) in the Zeus-01 exploration well, west of Karish. The well is in Block 12, and the Stena IceMax drilling rig has moved to block 23 to drill the Hercules structure, the final well in Energean's 2022 drilling campaign.
Energean is now analyzing the results and data obtained in the Zeus drilling. In addition, Energean has announced an upgrade to the estimate of the amount of natural gas discovered in the Athena well in April this year. Energean's reserve auditor, DeGolyer & MacNaughton, has certified contingent resources of 11.75 bcm in the Athena discovery, an increase of 3.75 bcm on the company's 8 bcm preliminary estimate. This increase follows post well studies of data collected during the drilling process.
"The results from the Zeus well and the Athena post-well analysis provide Energean with additional confidence about the volumes and commerciality of the Olympus area, and the company is now progressing its field development plan. Energean expects to update the market on the total resource volumes within the Olympus area, taking into account the uplifted volumes in both Zeus and Athena, in early 2023," Energean’s announcement states.
A month ago, Energean announced a gas find in the Hermes well in the more southerly Block 31.
Energean has so far discovered several medium-size gas reservoirs in Israeli waters amounting to over 100 bcm in total. This quantity could enable it to divert gas in excess of Israeli local consumption to exports. The amount of gas in the Karish and Tanin reservoirs is 75 bcm.
Energean CEO Mathios Rigas said, "Following the start of production from our Karish reservoir last week, I am pleased that our drilling program, which has now delivered five successful wells from five, continues to deliver value, ensuring security of supply and energy competition across the region. We are evaluating a number of potential commercialization options for the Olympus area that leverage both new and our existing, unique Med-based infrastructure, and we expect to commit to a development concept in the first half of 2023."
Published by Globes, Israel business news - en.globes.co.il - on November 7, 2022.
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