Energean Oil and Gas plc the oil and gas producer focused on the Mediterranean, issues an update on its Edison E&P acquisition.

As previously announced:

- Energean entered into a conditional sale and purchase agreement (“SPA”) on 4 July 2019 to acquire Edison E&P S.p.A. (“Edison E&P”) from Edison S.p.A. (“Edison”), completion of the SPA being subject to relevant government approvals;
- Energean and Edison were working together to overcome certain difficulties encountered in obtaining the consent of the Algerian authorities in respect of the Edison E&P assets located in Algeria (the “Algerian Assets”); and
- in parallel, Energean and Edison were considering an amendment to the SPA to record an appropriate settlement on the total transaction consideration, should the Algerian Assets not be acquired by Energean.

Energean and Edison have entered into a formal amendment to the SPA on 2April 2020, in which:

- the Algerian Assets shall be excluded from the scope of the acquisition;
- in recognition of the exclusion of the Algerian Assets, there will be an adjustment to the total consideration of the acquisition of approximately $150 million (as at the lock-box date of 1st January 2019).

Energean is working to complete the acquisition of Edison E&P as soon as is possible in 2020, subject to the approval of its shareholders and the other relevant governments. Thereafter, completion of Energean’s agreement for the sale of Edison E&P's UK and Norwegian subsidiaries to Neptune for a consideration of $250 Million plus contingent consideration of up to $30 million (as previously announced), will be completed as soon as reasonably practicable.

About Energean Oil & Gas plc

Energean is a London Premium Listed FTSE 250 and Tel Aviv 35 Listed E&P company with operations offshore Israel, Greece and the Adriatic. In August 2017 the Company received Israeli Governmental approval for the FDP for its flagship Karish-Tanin gas development project, where it intends to use the only FPSO in the Eastern Mediterranean to produce first gas in 2021.

Energean has already signed firm contracts for 5.0 Bcm/yr of gas sales into the Israeli domestic market. Future gas sales agreements will focus on both the growing Israeli domestic market and key export markets.

Energean has nine exploration licences offshore Israel, and a 25-year exploitation licence for the Katakolo offshore block in Western Greece and additional exploration potential in its other licences in Western Greece and Montenegro.

About Edison

Edison is a leading Italian and European operator in the supply, production and sale of electricity, in energy and environmental services. Founded over 135 years ago, Edison has contributed to the electrification and development of Italy. It now operates in Italy, Europe and the Mediterranean basin, employing 5,000 people. Edison’s electric power plants have a total capacity of 6.4 GW in Italy.