Energean Oil and Gas,  the  independent  oil  and  gas  exploration  and  production  company  focused  on  the  Eastern  Mediterranean, has posted a first-half EBITDAX figure of 16.7 million dollars, up 108.9 percent from an 8 million-dollar performance a year earlier.

The company’s first-half profit before tax was registered at 82.1 million US dollars, up a spectacular 1,965.9 percent from a 4.4 million-dollar loss incurred in the first half of 2017.

Operating profit was up 229.1 percent to 10.2 million following a 7.9 million-dollar loss a year earlier.

Mathios Rigas, Chief Executive at Energean Oil & Gas, commented:

“During the period we made substantial progress in de-risking our flagship Karish and Tanin development project. We signed a lump-sum, turn-key EPCIC contract with TechnipFMC, simplifying project management and reducing our financial risk exposure, and secured $12 billion of future revenue by signing 12 firm Gas Sales Agreements to deliver a total of 4.2 bcm/yr. Over the next 18 months we aim to prove up sufficient resource to fill the 3.8 bcm/yr of spare capacity in our Karish  FPSO, delivering significant incremental value to our stakeholders. Our independent reserves auditor has identified 7.5 Tcf of Israeli prospective resource with a high geological probability of success, which gives us confidence that we can meet this target whilst adhering to our exploration strategy to target resource that can be quickly and economically monetised. We look forward to the results from the Karish North exploration well in 2Q 2019.”

Operational and Financial highlights

– Raised $460 million through Premium London Stock Exchange IPO, the largest Oil & Gas IPO for nearly four years.

– Arranged $1,275 million of project financing with an attractive estimated average margin of 4%.

– Took Final Investment Decision for Karish-Tanin in March 2018; on track to deliver first gas in 1Q 2021.

– Increased net 2P reserves to 349 mmboe, a more-than-six times increase versus the 51 mmboe identified at the point of Listing.

– Identified 7.5 Tcf of gross prospective resources offshore Israel with a high geological chance of success.

– Committed to the high impact Karish North exploration well, commencing 1Q 2019 and targeting 1.3 Tcf and 16 million bbls of gross recoverable prospective resource (Energean 70%) with a volume weighted geological chance of success of 69%.

– Delivered 3,801 bopd of production, a 50% increase versus the comparable period for 2017.

– Drilled an Extended Reach Horizontal well into Prinos North; well contributed > 1,000 bopd in 1H 2018.

– Reduced production costs by 27% to $19/bbl  (1H 2017: $26/bbl); costs per barrel forecast to reduce further.

4Q18 Outlook 

– 2018 Full Year production guidance narrowed to 4,000 –  4,250 bopd (previously 4,000 –  4,500 bopd) due to  replacement  of  Prinos  infill  drilling  with  the  Epsilon  Extended  Reach  Well. Energean expects production to grow to more than 10,000 bopd by 2021.

–  First steel cut on the FPSO hull.

– Complete planning for Karish North exploration well.

– Early production from the Epsilon field via the Extended Reach Well.

– Drilling of one vertical well and commencement of a second at Epsilon.

– Continue early stage seismic operations

– Secondary listing on the Tel Aviv Stock Exchange.