Energean to launch Stena drilling campaign offshore Israel

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Greek oil and gas firm Energean has signed a contract with Stena Drilling Limited for its 2022-2023 growth drilling programme offshore Israel.

It is expected to target the derisking of unrisked prospective recoverable resources of over 1 billion barrels of oil equivalent (boe).

The contract is for drilling three firm wells and two optional wells, with the first firm well expected to spud in 1Q 2022.

The firm wells are all expected to be drilled during 2022:

  • The Karish North development well, a key part of the Karish North development. The scope includes re-entry, sidetracking, and completing the previously drilled Karish North well and completion as a producer. The Karish North development is expected to deliver first gas in 2H 2023.
  • The Karish Main-04 appraisal well, which is expected to target further prospective volumes within the Karish Main Block. Total unrisked recoverable volumes estimated to be targeted by the well are 166 mmboe.
  • The Athena exploration well, located in Block 12, is situated directly between the Karish and Tanin leases. Athena is estimated to contain unrisked recoverable prospective resource volumes of 20 Bcm (0.7 Tcf) of gas plus 4 mmbbls of liquids. Therefore, success at Athena would be expected to significantly derisk approximately 90 Bcm (2.5 Tcf) plus 19 mmbbls 1 of remaining unrisked recoverable prospective resource volumes located within Block 12 and Tanin.

Two factors support the commercialisation of a Block 12 discovery.

Block 12 was a new licence award to Energean Israel Limited in 2018; produced volumes will generate no royalty payments regarding Energean Israel Limited’s original acquisition of the block.

The more proximate location of the potential development to the expected location of the Energean Power FPSO is also expected to reduce like-for-like development costs when compared with Tanin.

The drilling campaign will be undertaken using the Stena Icemax drillship, a state-of-the-art ice-class harsh environment dual-activity dynamically positioned drillship capable of drilling in water depths of up to 10,000 ft.

Energean CEO Mathios Rigas said: “We are delighted to be working with Stena again, and this five-well programme follows the three-well development drilling programme and 243 mmboe Karish North discovery, all successfully executed with Stena over 2019 and 2020.

“Our five-well growth programme offshore Israel, commencing 1Q 2022, has the potential to double Energean plc’s reserve base with resource volumes that can be quickly, economically and safely monetised.

“Combined with first gas from our flagship Karish gas development project in mid-2022, the next 12-months are set to be truly transformational for Energean.”