Energean to drill two more Israel wells with Stena drillship

On the back of last month’s gas discovery offshore Israel, E&P company Energean has exercised its options with Stena Drilling as part of its 2022 growth drilling campaign.

Energean informed on Monday it has extended its growth drilling programme by exercising its options to drill two further wells with Stena Drilling.

As a reminder, Energean signed a contract with Stena Drilling for its 2022 – 2023 growth drilling programme offshore Israel about a year ago. The contract was for the drilling of three firm wells and two optional wells, using the Stena IceMAX drillship.

Mathios Rigas, Chief Executive Officer of Energean, commented: “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.”

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.

As explained by Energean, the target for the second well is still under consideration and is largely contingent on the results of the Hermes well.

Energean has also provided an update on the initial results of the KM-04 appraisal well, confirming that the drilling has been 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 encountered gas and associated liquids 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.

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

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.

Earlier this month, Energean’s new FPSO, built for the Karish gas field located offshore Israel, crossed the Suez Canal while on its way from a shipyard in Singapore to waters off Israel. This was the first vessel of this type to cross the canal.

Following the vessel’s arrival in Israel, hook-up and commissioning operations began. However, Lebanon warned Israel against any activity in the area as it believes the gas field is located within disputed waters.