Energean spuds Karish North well offshore Israel

Greek oil and gas company Energean has started drilling its Karish North exploration well offshore Israel using the Stena DrillMAX drillship 

Energean’s flagship Karish and Tanin development project is on-track to deliver first gas in the first quarter of 2021.

Energean started its four-well drilling campaign in Israel on February 28, 2019.

In an update on Thursday, the Greek company said that the top hole sections of the three Karish Main development wells had already been batch drilled. The Karish North exploration well spudded on March 15, 2019, and will be drilled in its entirety.

Karish North is targeting 1.3 Tcf (36.8 bcm) and 16.4 million bbls of gross prospective resources with a 69% volume weighted chance of success.

Karish North is budgeted at $25 million and P50 drilling time is 45 days. Karish North is situated approximately 5.4km from the future location of the FPSO and Energean believes that commercialization of a discovery could deliver attractive incremental economics. Success at Karish North would enable conversion of the 0.4 bcma I.P.M. Beer Tuvia contract from contingent into firm and either further increase gas sales or defer the Tanin development.

Energean believes that Karish North results could have important read across for the Karish East prospect and the upside component of the Karish Main wells.

Three development wells

According to the company, completion of the three Karish Main development wells will follow Karish North. Reservoir sections and completions will be batch drilled to maximize operational and cost efficiencies.

These three wells will deliver 4.2 bcma (406 mmcfd) of firm contracted gas sales into the Israeli domestic market, starting 1Q 2021. Energean has built redundancy into its field development plan and the required gas volume is expected to be produced by just two of the wells.

The primary development target in Karish Main is the C sands, which contain the majority of Energean’s2P reserves. The A sands are eroded on crest, the B sands are thin and form a secondary target for recompletion post C sand development. The exploration component of the development wells includes upside in the B and D sands.

All of the Karish Main wells will be flow tested with rates and pressures recorded. A mini-DST will be run across all gas bearing stratigraphic units.

Following completion of this four-well campaign, Energean has six options remaining on its drilling contract with Stena Drilling.