REG - Energean PLC - Exercise of Drilling Options and KM-04 Update

EnergeanAnnouncement

20/06/2022 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220620:nRST4357Pa&default-theme=true

RNS Number : 4357P  Energean PLC  20 June 2022

 

 

 

 Energean plc

("Energean" or the "Company")

 

Exercise of Drilling Options and KM-04 Update

London, 20 June 2022 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased to
announce that it has extended its growth drilling programme by exercising its
options to drill two further wells with Stena Drilling Limited ("Stena") and
to provide an update on the initial results of the KM-04 appraisal well.

Mathios Rigas, Chief Executive Officer of Energean, commented:

"Operations at the KM-04 appraisal well have been successfully completed ahead
of schedule and below budget, meeting the primary objectives set pre-drill.

 

"We confirm today the extension of our 2022 growth drilling campaign, on the
back of success at Athena last month. We have exercised our options with Stena
to drill a further two wells, commencing with Hermes, in line with our goal to
continue to provide competition and security of supply in the local Israel gas
and energy markets. The exercise of these options, will help us to reach our
target to double our Israel gas resource base in order to also export to the
broader region of the Eastern Mediterranean and beyond."

 

 

Additional Drilling Targets

Energean has exercised its options to drill two further wells as part of its
2022 growth drilling campaign.

The first well will target the Hermes prospect, located in Block 31, and is
expected to spud in August 2022.  The primary target is the Tamar A sands.
Hermes forms one segment of a larger cluster of structures similar to how the
Athena discovery is one segment of the Olympus Area.

The target for the second well is still under consideration and is largely
contingent on the results of the Hermes well.

 

 

KM-04 Appraisal Results

Energean confirms that drilling of the KM-04 appraisal well has been safely
and successfully completed. The well was completed 15 days ahead of schedule
and $9 million below budget at a cost of $36 million.

The primary objectives of the well were to;

·      further appraise gas volumes in the flanks of the structure; and

·      reduce uncertainties associated with liquid content in the
central fault blocks.

The KM-04 appraisal well achieved the following;

·      Gas and associated liquids were encountered in the previously
undrilled fault block between Karish Main and Karish North;

·      Gas was encountered in the A-sands on the flanks of the Karish
Main structure, these sands were tested and fluid samples obtained; and

·      An oil rim was confirmed in the central part of the field, with
thickness towards the lower end of the pre-drill expectation range (5-10metres
vs. 0-100metres pre-drill).  A sample of oil was obtained for testing.
Energean expects to be able to commercialise the oil volumes through the
existing well stock.

Additional analysis will now be undertaken to further refine reserve volumes
and the liquids-to-gas ratio across the Karish lease.

As planned, the Stena IceMAX will now move to complete the next development
well before moving to Hermes in August 2022.

 

Enquiries

 

For capital markets: ir@energean.com (mailto:ir@energean.com)

 

Maria Martin, Head of Corporate
Finance
Tel: +44 7917 573 354

 

For media: pblewer@energean.com (mailto:pblewer@energean.com)

 

Paddy Blewer, Head of Corporate
Communications
Tel: +44 7765 250 857

 

Forward looking statements

This announcement contains statements that are, or are deemed to be,
forward-looking statements. In some instances, forward-looking statements can
be identified by the use of terms such as "projects", "forecasts", "on track",
"anticipates", "expects", "believes", "intends", "may", "will", or "should"
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and events to
differ materially from those expressed in or implied by such forward-looking
statements, including, but not limited to: general economic and business
conditions; demand for the Company's products and services; competitive
factors in the industries in which the Company operates; exchange rate
fluctuations; legislative, fiscal and regulatory developments; political
risks; terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. The information contained in this
announcement is subject to change without notice.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDKZGZVKGVGZZG