Energean triples gas production

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Greek energy firm Energean Plc announced that its production has tripled for the first six months of 2023 compared to last year.

Production was 105.9 kboed (thousands of barrels of oil equivalent per day), nearly triple that of H1 2022.

Moreover, its Israeli Karish production is currently steady at about 6 bcm/yr of oil equivalent.

The company said commissioning under the gas sales agreements (GSAs) was achieved in April, with Practical Completion under the EPCIC with Technip achieved in June.

According to the company, optimisation activities on the FPSO and subsea systems have progressed well.

And the Energean Power FPSO achieved 97% uptime in August.

Efficiency levels have followed a similarly positive trajectory, and production is currently steady, averaging around 570 million standard cubic feet per day (about 6 bcm/yr of oil equivalent) over the last three weeks.

“Energean Power FPSO capacity increase to 8 bcm/yr is on track for delivery by the end of 2023.”

The company said that positive results were also achieved at the second and third NEA/NI (Egypt) development wells, reinforcing Energean’s view that results from NEA #6 would have no read-across to the remainder of the field.

NEA#5 came on stream in July and is producing in line with pre-drill expectations, whilst PY#1 testing has delivered results in line with expectations.

The remaining two wells are expected on-stream in 2023, Energean notes.

“Moreover, Cassiopea (Italy) development is progressing in line with expectations: pipe-laying is complete and sub-sea installation activities are progressing well.

“Additionally, the final investment decision (“FID”) on Katlan is expected in late 2023.

“As far as Orion 1X is concerned, drilling is expected to commence in Q4 2023.

Energean said 2023 production guidance is revised to 120 – 130 kboed (from 125 – 140 kboed), reflecting start-up issues that have now been substantially overcome.

It noted that it is on track to deliver near-term targets of 200 kboed, $2.5 bln in revenues.

The company said it “delivered strong financial results, underpinned by the contribution of Karish and despite the softer commodity price environment”.

Its revenues for H1 2023 were $587.6 mln, noting a 73% increase compared to 2022 and adjusted earnings before interest, taxes, depreciation, and amortisation of $345.2 mln, a 74% increase.

In July, Energean’s subsidiary, Energean Israel Finance Limited, issued a $750 mln bond to repay Energean Israel’s March 2024 bond.

The newly issued bond matures in 2033 and extends Energean’s weighted average debt maturity from just over five to over six years.

Additionally, Energean declared a Q2 2023 dividend of 30 US$ cents/share, in line with company dividend policy, scheduled to be paid on 29 September.

Following this payment, cumulative dividends of $266 mln (150 US$ cents/share) will have been returned to shareholders.

CEO Mathios Rigas said, “Energean is now a major energy producer in the Eastern Mediterranean”.

“We are pleased with the positive demand in the market for our gas and will continue to focus on optimising production efficiency”.

Rigas said the company’s growth projects, which target to increase production to 200 kboed by H2 2024, “are all progressing well”.

“We are also preparing for FID on Katlan later in the year.

“Given the export potential from the Katlan (Israel) licence, we plan to engage with local and international buyers to market our gas.

“Elsewhere, we look forward to the spudding of the Orion-1X exploration well next quarter, offshore Egypt, with our partner Eni.”