Report gives boost to Energean’s Israel acreage

A completed competent persons (CPR) report has provided a boost in the estimate of Energean’s reserves offshore Israel.

Source: Energean
Source: Energean

Energean said on Thursday that it received an updated independent CPR from Netherland Sewell & Associates (NSAI) for its Israeli portfolio.

The updated CPR includes the certification of 63 bcm (2.2 Tcf) of 2P reserves and 7.5 Tcf of gross prospective resources.

Per Energean, this is the first assessment of prospective resources in the new blocks (12, 21, 22, 23, and 31) that were awarded as part of the recent offshore licensing round.

As for the Karish and Tanin fields, located in the Mediterranean Sea, offshore Israel, the report noted 63 bcm (2.2 Tcf) of gas and 31.8 million barrels of liquids of 2P reserves.

Energean’s independently certified net 2P reserves are now 349 mmboe, an increase from the 51 mmboe estimated when Energean undertook its London Stock Exchange listing in March 2018.

The CPR also recognized contingent resources of 5.4 bcm (0.2 Tcf) of gas and 1.0 million barrels of liquids in the Karish field. Remaining contingent resource relates to the Karish B reservoir.

According to Energean, overall 2P reserves plus contingent resources across the Karish and Tanin leases remain the same.

Karish FPSO could be used for nearby finds

The updated CPR also recognizes gross recoverable prospective resources of 212 bcm (7.5 Tcf) of gas and 101 million barrels of liquids, consistent with Energean’s view that its acreage contains an attractive number of near-field prospects where potential discoveries can be quickly and economically monetized.

The Karish FPSO is being built with gas production and processing capacity of 8 bcm per year and Energean Israel has sold 4.2 bcm per year of discovered gas volumes, leaving 3.8 bcm per year of available FPSO capacity for the potential tie-back of future discoveries.

Karish well next

The company reminded that it recently committed to drill a well in the Karish North exploration prospect.

NSAI estimates that the Karish North well will target 38 bcm (1.3 Tcf) of gas and 16.4 million barrels of liquids and has a 69% volume weighted probability of geological success. Energean added that the option to drill additional exploration wells was still open with six options remaining on its drilling contract with Stena.

Mathios Rigas, CEO of Energean Oil & Gas, said: “We are pleased that our independent reserves auditors have identified 7.5 Tcf of prospective resource across our Israeli acreage with a very high probability of geological success, across which we have limited exploration capital commitments.

“The conversion of contingent resources demonstrates our commitment to increasing reserves and underpins a more-than-six times increase in our independently verified 2P reserves at IPO.”