Energean’s Israeli reserves, resources increase significantly

An updated Competent Persons Report (CPR) for the Israeli portfolio of Energean Oil and Gas, the independent oil and gas exploration and production company focused on the eastern Mediterranean, includes the certification of 63 bcm (2.2 Tcf) of 2P reserves and 7.5 Tcf of gross prospective resources and is the first assessment of prospective resources in the new Blocks (12, 21, 22, 23 and 31) that were awarded as part of the recent offshore licencing round, Energean has just announced in a statement.

The oil and gas firm’s updated CPR was provided by petroleum industry consulting firm Netherland Sewell & Associates.

Mathios Rigas, CEO of Energean Oil & Gas, commented: “We are pleased that our independent reserves auditors have identified 7.5 Tcf of prospective resource across our Israeli acreage with a very high probability of geological success, across which we have limited exploration capital commitments.  The outcome is consistent with Energean’s view that our portfolio contains multiple attractive near-field exploration opportunities that could deliver significant upside alongside our existing Karish and Tanin development. The conversion of contingent resources demonstrates our commitment to increasing reserves and underpins a more-than-six times increase in our independently verified 2P reserves at IPO.”

The updated CPR includes 63 bcm (2.2 Tcf) of gas and 31.8 million barrels of liquids (gross, Energean 70%) of 2P reserves in the Karish and Tanin fields. Energean’s independently certified net 2P reserves are now 349 mmboe, an increase from the 51 mmboe estimated when Energean undertook its London Stock Exchange listing in March 2018.

Contingent resources in the Karish field of 5.4 bcm (0.2 Tcf) of gas and 1.0 million barrels of liquids (Gross, Energean 70%) are recognized. Remaining contingent resource relates to the Karish B reservoir.

Overall 2P reserves plus contingent resources across the Karish and Tanin leases remain the same.

The updated CPR also recognises gross recoverable prospective resources of 212 bcm (7.5 Tcf) of gas and 101 million barrels of liquids (Energean 70%), consistent with Energean’s view that its acreage contains an attractive number of near-field prospects where potential discoveries can be quickly and economically monetised. The Karish FPSO is being built with gas production and processing capacity of 8 bcm/yr.

Energean Israel (Energean 70%) has sold 4.2 bcm/yr of discovered gas volumes, leaving 3.8 bcm/yr of available FPSO capacity for the potential tie-back of future discoveries.

Energean recently committed to drill a well in the Karish North exploration prospect. NSAI estimates that the Karish North well will target 38 bcm (1.3 Tcf) of gas and 16.4 million barrels of liquids (gross, Energean 70%) and has a 69% volume weighted probability of geological success.

The option to drill additional exploration wells remains open. Energean has six options remaining within its Stena drilling contract.