Energean Oil and Gas plc (LSE: ENOG, TASE: אנאג ,(the oil and gas producer focused on the Mediterranean, is pleased to announce the completion of an independent Competent Persons Report (“CPR”) by DeGolyer and MacNaughton (“D&M”) on the Karish North Field, offshore Israel, and submission of an addendum to the Field Development Plan (“FDP”) to the State of Israel’s Ministry of Energy for Karish North.

Highlights:

- Karish North certified to contain gross 2C resources of 1.2 Tcf (33.7 bcm) of gas and 39 million barrels of liquids (“mmbbls’). This represents a total of 250 million barrels of oil equivalent (“mmboe”), of which 84% is gas
- Delivers a 32% uplift to Energean’s previous Karish North resource best estimate, including approximately 0.3 Tcf (9 bcm) of gas plus 5 mmbbls of liquids, a total of approximately 60 mmboe (of which 90% is gas)
- Total gross 2P + 2C across the Karish, Tanin and Karish North is now estimated to be almost 3.5 Tcf (99 bcm) of gas plus 82 mmbbls of liquids, a total of 698 mmboe (88% of which is gas)
- 0.6 bcm/yr contingent Gas Sales and Purchase Agreements (“GSPAs) will now be converted to firm; firm GSPAs will now deliver approximately 5.6 bcm/yr of gas sales on plateau, with FPSO capacity of 8 bcm/yr
- Energean continues to actively market additional gas volumes to secure additional longterm cash flows that are largely insulated from global commodity price fluctuations
- Energean has also submitted an addendum to the Karish and Tanin FDP, to cover the Karish North development, envisaging a production capacity of up to 300 mmscf/d (approximately 3 bcm/yr), initially from one well
- Karish North Final Investment Decision (“FID”) expected during 2H 2020 with first gas in 2022

Mathios Rigas, CEO of Energean said:
“I am delighted that 2C resources at Karish North are some 32% ahead of where we had initially expected. This has enabled us not only to convert 0.6 bcm/yr of contingent contracts into firm, but also to continue targeting additional gas sales opportunities that will be incremental to the 5.6 bcm/yr of firm gas sales that we now expect to deliver on plateau.
We are very pleased to be developing a world-class gas resource of 700 million boe and look forward to more gas discoveries in our acreage in Israel and the wider Eastern Med region.”

Details of D&M CPR

Reserves & Resources
Following a full analysis of the results of both the Karish North discovery well and the side-track, D&M has certified that the Karish North field contains gross 2C contingent resources of 1.2 Tcf (33.7 Bcm) of gas plus 39.4 million barrels of liquids (Energean 70%), a total of approximately 250 mmboe. This represents a significant uplift of 0.3 Tcf (8.5 Bcm) of gas plus 5.4 million barrels of liquids (approximately 60 mmboe) to Energean’s previous best estimate of Karish North volumes.
Best estimate Gas Initially In Place (“GIIP”) is now 1.7 Tcf (approximately 48 bcm)

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.