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    Israel Resource Audit Cheers Energean


Energean says the first independent assessment covering five newly awarded blocks shows it has more resources to prove up offshore Israel.

by: Mark Smedley

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Natural Gas & LNG News, Europe, Middle East, Corporate, Exploration & Production, News By Country, Greece, Israel

Israel Resource Audit Cheers Energean

Greek independent Energean announced August 16 an updated independent assessment of its Israeli acreage, which has increased its overall certified reserves, and indicated how much might yet be proven.

The assessment by Netherland Sewell & Associates (NSAI) certifies 2.2 trillion ft3 (63bn m3) of proven 2P reserves in the Karish and Tanin fields, along with 7.5 trillion ft3 of prospective resources overall – both figures gross at 100% equity. The latter is the first assessment of prospective resources in its five new blocks (12, 21, 22, 23 and 31). NSAI also certified 31.8mn bbls of 2P gross liquid reserves at Karish/Tanin.

Offshore Israel interests are owned by Energean Israel, which is 70% owned by the parent company and 30% by venture capital fund Kerogen.

Parent Energean said its independently certified net 2P reserves are now 349mn barrels of oil equivalent (boe), an increase from the 51mn boe estimated when it undertook its London listing in March 2018.

Commenting on the 7.5 trillion ft3 figure, Energean CEO Mathios Rigas said: "The outcome is consistent with Energean's view that our portfolio contains multiple attractive near-field exploration opportunities that could deliver significant upside alongside our existing Karish and Tanin development.”

The Karish FPSO is being built with gas production and processing capacity of 8bn m3/yr, it said, of which Energean Israel has sold 4.2bn m3/yr of discovered volumes, leaving 3.8bn m3/yr of available FPSO capacity for the potential tie-back of future discoveries.

Energean recently committed to drill a well in the Karish North prospect. NSAI now estimates that the Karish North well will target 1.3 trillion ft3 (38bn m3) of gas and 16.4mn bbls of liquids, both gross, and has a 69% volume weighted probability of geological success; the option to drill additional exploration wells remains open; Energean has six options remaining within its Stena drilling contract.

CEO Rigas last month gave an extended interview focusing on its Israeli activities to NGW, available here.