Energean Announce Gas Discovery in Israel
Energean plc announced that a commercial gas discovery has been made by the Athena exploration well, offshore Israel.
• Commercial discovery made by the Athena exploration well, Block 12, in the A, B and C sands. Preliminary analysis indicates that the Athena discovery contains recoverable gas volumes of 8 bcm (283 bcf / (51 mmboe) on a standalone basis.
• This discovery is particularly significant as it de-risks an additional 50 bcm (1.8 tcf / (321 mmboe) of mean unrisked prospective resources across Energean’s Olympus Area (total 58 bcm / 372 mmboe including Athena).
o The Olympus Area is Energean’s newly defined area which includes Athena, plus the undrilled prospects on Block 12 and the adjacent Tanin Lease.
• Athena can be commercialised in the near-term via tie-back to the Energean Power FPSO, enhancing the profitability of the Karish-Tanin development. Alternatively, it could form part of a new Olympus Area development.
• Energean is therefore actively pursuing development options for the commercialisation of the wider Olympus Area, (potentially including Athena), such as:
o Further domestic Israeli gas sales:
▪ New Gas Sales and Purchase Agreements (“GSPA”) underpinned by the continued growth of the Israeli power market
▪ Spot sales
o Export options:
▪ Developing the Memorandum of Understanding (“MoU”) signed with The Egyptian Natural Gas Holding Company (“EGAS”) for the supply of up to 3 Bcm/yr into a binding agreement
▪ Exports to other regional and European markets via pipeline and LNG via Cyprus and/or Egypt
• The economics of gas produced and sold from Block 12 are not subject to royalties payable to the original sellers of the Karish and Tanin leases, leading to an approximate 8% increase in revenue for the same volumes sold, when compared with the Karish and Tanin discoveries