Energean: The first results from the ‘Athena’ drilling in Israel in the second quarter

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In the second quarter of the year, Energean expects the first results from the “Athena” drilling in the offshore block 12 in Israel. The announcement was made on Thursday morning by the group’s management, in the context of the detailed announcement of its financial results for 2021 to the London and Tel Aviv Stock Exchanges.

The Athena exploration drilling targets 21 billion cubic meters of natural gas (140 million barrels of oil equivalent in total) and is the first of a 3 + 2 drilling program, which is the largest for this year in the wider Eastern Mediterranean region. . As Mathios Rigas, CEO of the group, commented, “the success of the drilling will be a catalyst for our further development in Israel and the wider region, where security of supply is now a key priority.”

It is noted that, during 2021, the production was above the initial forecasts, at 41 thousand barrels of oil equivalent per day (72% in natural gas), while the forecast for this year refers to production between 60 and 70 thousand barrels of oil equivalent per day. .

“The project – a milestone for our company, the development of the Karish field, is going to give the first natural gas production during the third quarter of the year. “, while the other deposit development programs in Israel, Italy and Greece (Epsilon deposit in the Gulf of Kavala) are proceeding based on our planning”, stressed the CEO of the group.

Mr. Rigas pointed out that the company remains focused on reducing carbon emissions and is working to achieve a zero emission balance by 2050. “During 2021, we achieved a further reduction of our emissions by 8% on an annual basis to 18.3 kilos of CO2 per barrel of oil equivalent produced and we managed to zero the emissions of the so-called Scope 2 (energy purchased from third parties for own consumption) in all the facilities that we operate “, concluded Mr. Rigas

The main points of today’s information:

Average daily production at 41 thousand barrels of oil equivalent (72% natural gas) above initial estimates and with a production cost of $ 17.5 per barrel of produced oil equivalent.

Revenue $ 497 million (336 million pro forma) and earnings before interest, taxes, depreciation and amortization (EBITDAX) $ 212 million ($ 108 million pro forma). Capital expenditure was $ 406 million (565 million pro forma).

Start of the research drilling “Athena” in the sea of ​​Israel, with the first results expected during the second quarter.

Agreement for the sale of a spot gas to Israel Electricity Company, the largest consumer of natural gas in Israel.

Signing of the financial package with the guarantee of the Greek State for the development of the Epsilon deposit that is expected to start production in the first half of 2023.

Reduction of carbon emissions by 8% on an annual basis.

The prospects of 2022

Production starts from the Karish deposit in Israel in the third quarter.

Estimate for an average daily production of between 60 and 70 thousand barrels of oil equivalent, including production in Israel.

Estimated capital expenditure between $ 710 million and $ 760 million.

Start of production from the first drilling of the NEA / NI offshore deposits in Egypt in the first half.

Completion of the Pre-Front-End Engineering Design Design -pre-FEED for the Coal Capture and Storage project in Prinos.

Concluding additional agreements for the sale of natural gas in Israel and the wider region.

See here the full update of Energean to the London and Tel Aviv Stock Exchanges

Source: Capital

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