ENOG Sees Reserves Increase at Israeli Assets

ENOG Sees Reserves Increase at Israeli Assets
Energean plc (LSE: ENOG) has announced a 'significant' 2P reserves increase at its Israeli assets.

Energean plc (LSE: ENOG) has announced a “significant” 2P reserves increase at its Israeli assets, following the completion of an independent competent persons report by DeGolyer and MacNaughton.

The report certified 3.5 trillion cubic feet of gas and 99.6 million barrels of gross liquid 2P reserves in the Karish, Karish North and Tanin fields. Energean’s gross 2P reserves in Israel now total approximately 729 million barrels of oil equivalent, which represents a 44 percent increase compared to its previously estimated 2P reserves.

Energean noted that the increase was principally driven by the upgrade of resources following approval of the Karish North Field Development Plan by the Israeli government in August this year. A final investment decision for Karish North is expected in the fourth quarter of 2020.

“We are delighted that our independent reserves auditor has confirmed 2P gas volumes of 98 billion cubic meters within our Karish, Karish North and Tanin fields, offshore Israel, representing another year of continuous reserves growth in our portfolio,” Mathios Rigas, the chief executive officer of Energean, said in a company statement.

“This gas, the majority of which has already been contracted, will be sold under fixed-price gas sales agreements that will protect our revenue stream from commodity price fluctuations, which underpins our strategic goal of paying a sustainable dividend,” he added.

“The approximately 100 million barrels of oil equivalent of 2P liquids reserves and production plateau averaging 28,000 barrels per day over five years represents a substantial increase on previous estimates, which further supplements our shareholder returns profile with high-margin production that has no incremental impact on our scope 1 and scope 2 CO2 emissions intensity,” he added.

Energean is a London-based independent exploration and production company focused on developing resources in the Mediterranean and UK North Sea. In December last year, Energean pledged to be a net zero emissions firm by 2050.

To contact the author, email andreas.exarheas@rigzone.com


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