Karish North CPR: 32 percent uplift on prior estimates – Field Development Plan submitted

Energean Oil and Gas, the oil and gas producer focused on the Mediterranean, has announced the completion of an independent Competent Persons Report (‘CPR’) by DeGolyer and MacNaughton on the Karish North field, offshore Israel, and submission of an addendum to the Field Development Plan (‘FDP’) to the State of Israel’s Ministry of Energy for Karish North.

 

Highlights

 

  • Karish North certified to contain gross 2C resources of 1.2 Tcf (33.7 bcm) of gas and 39 million barrels of liquids (‘mmbbls’). This represents a total of 250 million barrels of oil equivalent (‘mmboe’), of which 84% is gas

 

  • Delivers a 32% uplift to Energean’s previous Karish North resource best estimate, including approx. 0.3 Tcf (9 bcm) of gas plus 5 mmbbls of liquids, a total of approximately 60 mmboe (of which 90% is gas)

 

  • Total gross 2P + 2C across the Karish, Tanin and Karish North  is now estimated to be almost 3.5 Tcf (99 bcm) of gas plus 82 mmbbls of liquids, a total of  698 mmboe (88% of which is gas)

 

  • 6 bcm/yr contingent Gas Sales and Purchase Agreements (‘GSPAs’) will now be converted to firm; firm GSPAs will now deliver approximately 5.6 bcm/yr of gas sales on plateau, with FPSO capacity of 8 bcm/yr

 

  • Energean continues to actively market additional gas volumes to secure additional long-term cash flows that are largely insulated from global commodity price fluctuations

 

  • Energean has also submitted an addendum to the Karish and Tanin FDP, to cover the Karish North development, envisaging a production capacity of up to 300 mmscf/d (approx. 3 bcm/yr), initially from one well

 

  • Karish North Final Investment Decision (‘FID’) expected during 2H 2020 with first gas in 2022

 

Mathios Rigas, CEO of Energean said: ‘I am delighted that 2C resources at Karish North are some 32% ahead of where we had initially expected. This has enabled us not only to convert 0.6 bcm/yr of contingent contracts into firm, but also to continue targeting additional gas sales opportunities that will be incremental to the 5.6 bcm/yr of firm gas sales that we now expect to deliver on plateau.

 

‘We are very pleased to be developing a world-class gas resource of 700 million boe and look forward to more gas discoveries in our acreage in Israel and the wider Eastern Med region.’

 

Source: Energy-pedia