Energean Oil and Gas plc, the independent oil and gas exploration and production company focused on the Eastern Mediterranean, is pleased to announce that the Board has made the decision to drill an exploration well in the Karish North prospect, offshore Israel, with a planned spud date before end-March 2019, subject to necessary approvals. This will exercise the first of seven optional wells included in the Stena Drilling contract.

The Karish North prospect is located within Energean’s Karish lease and will be drilled immediately prior to the three well development of the adjacent Karish Main field, the Company’s flagship gas development project. Gross drilling costs are expected to be between US$15-25 million.

for the Karish North prospect estimates gross recoverable unrisked prospective resources of 33.5 BCM (1.2 Tcf, or circa 200 MMboe) of natural gas and 14 MMbbls of light oil. The Karish lease is 100% owned and operated by Energean Israel Ltd, which is 70% owned by Energean.

The decision to drill the Karish North well is consistent with Energean’s exploration strategy to target near field prospects where potential discoveries can be quickly and economically monetised.

The Karish FPSO is being built with gas production and processing capacity of 8 BCMA. Energean Israel has forward sold 4.2 BCMA of currently discovered gas volumes, leaving circa 4 BCMA of excess FPSO capacity available for the potential tie-back of future discoveries.

The option to drill additional exploration wells at the end of the development well campaign remains open. Options for a second well include the Karish East prospect in the Karish lease and Prospect 4 in the Block 12 exploration licence, which Energean secured at the end of 2017, following the First Israeli Offshore Bid Round.

Mathios Rigas, CEO Energean Oil & Gas, commented:
“We view Karish North as an attractive near-field exploration opportunity offshore Israel that could deliver significant upside alongside our existing Karish development, for which we have already signed 12 gas contracts and secured 4.2 BCMA of supply over an average period of 16 years. The goal of the exploration work is to identify further easy-to-commercialise resources in the region.”

About Energean Oil & Gas

Energean (LSE: ENOG) is a London Premium-Listed independent E&P company focused on the Eastern Mediterranean region, where it operates in offshore Israel, Greece and the Adriatic and holds 13 licences. The Group has 2P reserves of 51 MMbbls of oil and 6 Bcf of gas and 2C resources of 45.9 MMbbls of oil and 1.7 Tcf of gas across its Eastern Mediterranean asset portfolio.

In August 2017 the Company received Israeli Governmental approval for the FDP for its flagship KarishTanin gas development project, where it intendsto use an FPSO and produce first gas forthe Israeli market in 2021. In Greece, the Company is pursuing an ongoing investment and development programme to increase production from its Prinos and Prinos North oil fields and to develop the Epsilon oil field, located in the Gulf of Kavala, Northern Greece.

Energean has five 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 offshore Western Greece, and Montenegro.