Energean sees 212 BCM gas potential in Israeli blocks

Energean rig Photo: Company website

A geological analysis of the Greek company's five new Israeli licenses estimated the amount of gas in them together with Tanin and Karish as 75% of the Tamar reservoir's contents.

Greek company Energean, owner of the Karish and Tanin natural gas reservoirs, today announced initial results of a geological analysis of its five new marine blocks in Israeli waters. The company said that the new gas fields' potential totaled 126 BCM and that potential together with Karish and Tanin is 212 BCM of gas, 75% of the amount of gas in the Tamar reservoir. The analysis was carried out by Netherland, Sewell & Associates (NSAI), which assessed the amount of gas in the Karish, Tanin, Tamar, and Leviathan gas reservoirs.

The analysis is only an initial one; the amount of gas in the reservoirs can be established with certainty only after exploratory drilling is carried out. Company sources said that if it is decided to carry out exploratory drilling, which is very costly, the company will also announce the accuracy of the resources report.

Energean CEO Mathios Rigas said, "We are pleased that the external evaluator (NSAI) identified a potential of 7.5 TCF of natural gas in our Israeli area with a very high probability of success, for which we have a contingent commitment to conduct exploratory drilling. The results are consistent with Energean's view that we have an asset portfolio that contains an attractive number of resources in the vicinity of the Karish and Tanin reservoirs."

In December 2017, Energean won exploratory licenses for Blocks 12, 21, 22, 23, and 31 nearby the Karish and Tanin reservoirs in the framework of the Ministry of National Infrastructure, Energy, and Water Resources tender proceeding. If it is decided to conduct exploratory drilling in the Energean's new blocks, it will take place following the first drilling at Karish, scheduled for March 2019, the cost of which is estimated at $15-25 million.

Energean has 13 exploration licenses, five of them outside Israel in Greece and Montenegro. The Greek company, which acquired the Karish and Tanin reservoirs in Israel following approval of the gas plan, is competing with the Leviathan and Tamar reservoirs, controlled by Yitzhak Tshuva's Delek Group Ltd. (TASE: DLEKG) and Noble Energy.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Energean rig Photo: Company website
Energean rig Photo: Company website
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