Greece’s Energean Oil and Gas, the oil and gas producer focused on the Mediterranean, announced on April 9 that recoverable resources in Israel’s Karish North field are 32% higher than expected.
According to Energean, an independent Competent Persons Report (CPR) by DeGolyer and MacNaughton (D&M) 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, certified Karish North to contain gross 2C resources of 33.7 billion cubic metres of gas and 39 million barrels of liquids. This represents a total of 250 million barrels of oil equivalent, of which 84% is gas.
The report delivers a 32% uplift to Energean’s previous Karish North resource best estimate,
including approximately 9 billion cubic metres of gas plus 5 million barrels of liquids of liquids, a total of approximately 60 million barrels of oil equivalent (of which 90% is gas).
“I am delighted that 2C resources at Karish North are some 32% ahead of where we had initially expected,” Energean CEO Mathios Rigas said. “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 billion cubic metres 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 barrels of oil equivelent and look forward to more gas discoveries in our acreage in Israel and the wider Eastern Med region,” Rigas added.
Total gross 2P + 2C across the Karish, Tanin and Karish North is now estimated to be
almost 99 billion cubic metres of gas plus 82 million barrels of liquids, a total of 698 million barrels of oil equivalent (88% of which is gas), the report read.
According to the report 0.6 billion cubic metres per year contingent Gas Sales and Purchase Agreements (GSPAs) will now be converted to firm; firm GSPAs will now deliver approximately 5.6 billion cubic metres of gas sales on plateau, with FPSO capacity of 8 billion cubic metres per year.
Energean continues to actively market additional gas volumes to secure additional longterm cash flows that are largely insulated from global commodity price fluctuations, the report said, adding that 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
(approximately 3 billion cubic metres), initially from one well.
Karish North Final Investment Decision (FID) is expected during the second half of 2020 with first gas in 2022.
