Karish Development 85 Percent Complete
Energean’s (LSE: ENOG) Karish project in Israel is now 85 percent complete, the company has revealed in a statement posted on its website.
“In the third quarter, we have continued to make solid progress on Karish, our flagship gas project in Israel, which is scheduled to deliver first gas in 4Q 2021,” Mathios Rigas, Energean’s chief executive, said in a company statement.
“The project’s economics, cash-flows and returns profile have been further enhanced through increasing firm gas sales by 1.4 billion cubic meters per year (Bcm/yr), to 7 Bcm/yr, and revising the expected liquids production plateau to an average of 28,000 barrels per day (bpd), from previous estimates of less than 10,000 bpd,” the company’s chief executive added in the statement.
Energean made a final investment decision for the Karish development project back in March 2018. According to a report produced by DeGolyer and MacNaughton earlier this month, the Karish field contains 1,409 billion cubic feet of gas 2P reserves plus 61 million barrels of liquids 2P reserves. This represents a total of 317 million barrels of oil equivalent 2P reserves (70 percent net to Energean).
Energean is a gas focused independent exploration and production company, with a portfolio of production, development and exploration assets in the Mediterranean and UK North Sea. Earlier this year, the company entered into a conditional sale and purchase agreement to acquire Edison E&P from Edison S.p.A. for $750 million, with an additional contingent consideration of $100 million payable following first gas production from the Cassiopea development.
In a statement on its website, Energean says the deal is transformational the company and provides it with immediate and material increases in cash flow and access to future growth opportunities. The deal is expected to close in December this year.
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