Energean entered into a conditional sale and purchase agreement to acquire Edison E&P from Edison S.p.A. for $750 million on the 4 July 2019. Since then, both parties have agreed several amendments to the deal. Key new developments confirmed today:

- Significant reductions to consideration, net consideration now expected to be just $178 million.
- Energean will add UK North Sea to its expanded portfolio including interests in two recent, material gas discoveries.
- EGM confirmed for 20 July 2020.

Deal Overview

- After working capital, Energean expects to pay just $178 million for its acquisition of Edison E&P.
- Energean expects to pay a contingent payment on first gas production from Cassiopea. If gas prices don’t recover from current levels, no contingent payment will materialise.
- Following completion, Energean will have reserves and resources in excess of 800 mmboe, that are substantially weighted towards gas and a clear path to producing more than 130 kboed, making it one of the largest E&P companies listed on the London Stock Exchange.
- Energean has signed a new $220 million Reserve Based Lending facility with ING, Natixis and Deutsche Bank. Combined with the equity raised in 2019, the transaction and all working capital requirements of the company are fully-funded.
- Energean looks forward to completing the transaction later this year, and to integrating the teams and portfolios to drive value creation.

Retaining Extensive Growth Portfolio in the UK North Sea

As announced on 19 May, Energean will now retain the UK subsidiaries within the perimeter of the transaction including a 25% interest in the Glengorm discovery and a 10% interest in the Isabella discovery.
The UK subsidiaries include non-operated interests in the Glengorm and Isabella gas discoveries which could add a further 85 MMboe of net gas condensate resources.

Glengorm
- One of the biggest discoveries in the UK North Sea in the last decade
- Contains gross estimated resource of 250 mmboe - based on operator estimates
- Two-well appraisal programme is scheduled to commence in 4Q 2020 / 1Q 2021
- Represents an attractive source of resource upside for the enlarged group’s portfolio

Isabella
- Discovery announced in March 2020.
- An appraisal programme is expected on the Isabella discovery in 4Q 2020 / 1Q
2021.
- Potential to contribute additional nearterm value creation potential.

About Energean

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 operates producing assets in Greece, 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.