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RNS Number : 4357P
Energean PLC
20 June 2022
Energean plc
("Energean" or the "Company")
Exercise of Drilling Options and KM-04 Update
London, 20 June 2022 - Energean plc (LSE: ENOG, TASE: ) is
pleased to announce that it has extended its growth drilling
programme by exercising its options to drill two further wells with
Stena Drilling Limited ("Stena") and to provide an update on the
initial results of the KM-04 appraisal well.
Mathios Rigas, Chief Executive Officer of Energean,
commented:
"Operations at the KM-04 appraisal well have been successfully
completed ahead of schedule and below budget, meeting the primary
objectives set pre-drill.
"We confirm today the extension of our 2022 growth drilling
campaign, on the back of success at Athena last month. We have
exercised our options with Stena to drill a further two wells,
commencing with Hermes, in line with our goal to continue to
provide competition and security of supply in the local Israel gas
and energy markets. The exercise of these options, will help us to
reach our target to double our Israel gas resource base in order to
also export to the broader region of the Eastern Mediterranean and
beyond."
Additional Drilling Targets
Energean has exercised its options to drill two further wells as
part of its 2022 growth drilling campaign.
The first well will target the Hermes prospect, located in Block
31, and is expected to spud in August 2022. The primary target is
the Tamar A sands. Hermes forms one segment of a larger cluster of
structures similar to how the Athena discovery is one segment of
the Olympus Area.
The target for the second well is still under consideration and
is largely contingent on the results of the Hermes well.
KM-04 Appraisal Results
Energean confirms that drilling of the KM-04 appraisal well has
been safely and successfully completed. The well was completed 15
days ahead of schedule and $9 million below budget at a cost of $36
million.
The primary objectives of the well were to;
-- further appraise gas volumes in the flanks of the structure; and
-- reduce uncertainties associated with liquid content in the central fault blocks.
The KM-04 appraisal well achieved the following;
-- Gas and associated liquids were encountered in the previously
undrilled fault block between Karish Main and Karish North;
-- Gas was encountered in the A-sands on the flanks of the
Karish Main structure, these sands were tested and fluid samples
obtained; and
-- An oil rim was confirmed in the central part of the field,
with thickness towards the lower end of the pre-drill expectation
range (5-10metres vs. 0-100metres pre-drill). A sample of oil was
obtained for testing. Energean expects to be able to commercialise
the oil volumes through the existing well stock.
Additional analysis will now be undertaken to further refine
reserve volumes and the liquids-to-gas ratio across the Karish
lease.
As planned, the Stena IceMAX will now move to complete the next
development well before moving to Hermes in August 2022.
Enquiries
For capital markets: ir@energean.com
Maria Martin, Head of Corporate Finance Tel: +44 7917 573
354
For media: pblewer@energean.com
Paddy Blewer, Head of Corporate Communications Tel: +44 7765 250
857
Forward looking statements
This announcement contains statements that are, or are deemed to
be, forward-looking statements. In some instances, forward-looking
statements can be identified by the use of terms such as
"projects", "forecasts", "on track", "anticipates", "expects",
"believes", "intends", "may", "will", or "should" or, in each case,
their negative or other variations or comparable terminology.
Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and
events to differ materially from those expressed in or implied by
such forward-looking statements, including, but not limited to:
general economic and business conditions; demand for the Company's
products and services; competitive factors in the industries in
which the Company operates; exchange rate fluctuations;
legislative, fiscal and regulatory developments; political risks;
terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change.
Forward-looking statements speak only as of the date of such
statements and, except as required by applicable law, the Company
undertakes no obligation to update or revise publicly any
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