Energean
plc
("Energean" or the
"Company")
Katlan Final Investment
Decision Taken
London, 23 July 2024 - Energean
plc (LSE: ENOG, TASE: אנאג) is pleased to announce that it has
taken Final Investment Decision ("FID") for the Katlan development
project in Israel.
As previously communicated, the
Katlan area will be developed in a phased approach through a subsea
tieback to the existing Energean Power FPSO. The development will
extend the production plateau from the FPSO with volumes that do
not incur seller royalties or carry export restrictions. Production
will underpin Energean's existing gas sales agreements plus target
international markets[1]. First gas is
planned for H1 2027.
The EPCI contract for the subsea
scope has been awarded to TechnipFMC and includes four-well-slot
tieback capacity to a single large ~30 kilometre production line,
which can be used by future Katlan area phases. Capital expenditure
is expected to be approximately US$1.2 billion, which includes: (1)
the aforementioned subsea infrastructure, (2) an upgrade of the
FPSO topsides related to MEG treatment, injection and storage
(which will benefit all future subsea tie-back developments) and,
(3) drilling the first two production wells of the development
(Athena and Zeus; 170 mmboe (includes 26 bcm of gas)2 of
2P reserves).
Energean is also pleased to confirm
that the Ministry of Energy and Infrastructure has granted the
associated 30-year lease for the Katlan area including a 20-year
extension option. The Ministry has also ratified the Hermes
discovery in the newly named Drakon area (Block 31) made as part of
the drilling campaign in 2022.
Mathios Rigas, Chief Executive Officer of Energean,
commented:
"This decision marks yet another
positive milestone on Energean's growth journey. The decision to
move ahead with Katlan will not surprise anyone that knows our
successful track record, given our commitment to the swift
development and production of gas assets.
"We are pleased that the Ministry
has officially granted the 30-year lease for Katlan and confirmed
our 2022 Hermes discovery, which de-risked the nearby accumulations
and represents attractive potential in the newly named Drakon area
(Block 31).
"By developing Katlan, we will
unlock further value in the Israeli subsurface that will provide
additional energy security and drive sustainable development, both
in Israel and the broader region."
Key
facts:
· The
Katlan area was discovered by Energean in 2022.
· Energean is the 100% owner and operator of the Katlan Lease
(I/21 Katlan).
· The
fields are located in water depths of up to 1,800
metres.
· The
field development plan for Phase 1 (Athena, Zeus, Hera and Apollo;
229 mmboe, including 35 bcm of gas)2 was approved by the
Israeli Government in December 2023.
·
The wider Katlan area contains an additional 223
mmboe (including 34 bcm of gas)[2]
of prospective volumes across the other
accumulations, which Energean views as substantially de-risked.
This will be developed in further phases and will require a shorter
pipeline connecting into the Phase 1 pipeline and will benefit from
the Phase 1 FPSO upgrades and investment.
Enquiries
|
For capital
markets: ir@energean.com
|
|
|
Kyrah McKenzie, Investor Relations
Manager
|
Tel: +44 (0) 7921 210 862
|
|
|
|
|
For media: pblewer@energean.com
|
|
|
Paddy Blewer, Corporate Communications Director & Head of CSR
|
Tel: +44 (0) 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 forward-looking statements, whether
as a result of new information, future events or otherwise. The
information contained in this announcement is subject to change
without notice.