Energean Israel Ltd., a wholly owned subsidiary of Energean PLC, signed a contract with Stena Drilling Ltd. for its 2022-2023 drilling program offshore Israel intended to derisk prospective recoverable resources of over 1 billion boe.
The contract is for three confirmed wells—the Karish North development well, the Karish Main-04 appraisal well, and the Athena exploration well—and two optional wells. The three confirmed wells are expected to be drilled during 2022, with the first expected to spud in first-quarter 2022.
Karish North includes re-entry, sidetracking, and completion of the previously drilled Karish North well and completion as a producer. The Karish North development will commercialize 2P reserves of 33 billion cu m (1.2 tcf) gas plus 31 million bbl liquids (a total of 243 MMboe) and is expected to deliver first gas in second-half 2023.
Karish Main-04 appraisal will target further prospective volumes within the Karish Main block, including the potential oil rim that was identified as part of the KM-03 development well drilling. Total estimated unrisked recoverable volume targeted is 166 MMboe.
Athena is in Block 12, directly between Karish and Tanin leases. It is estimated to contain unrisked recoverable prospective resource volumes of 20 billion cu m (0.7 tcf) gas plus 4 million bbl liquids. The primary target is estimated to contain unrisked recoverable prospective resource volumes of 10 billion cu m (0.4 tcf) gas plus 2 million bbl liquids with a 70% geological chance of success. Success would significantly derisk about 90 billion cu m (2.5 tcf) plus 19 million bbl remaining unrisked recoverable prospective resource volumes located within Block 12 and Tanin.
Two factors support commercialization of a Block 12 discovery. First, Block 12 was a new license award to Energean Israel Ltd. in 2018; produced volumes will therefore generate no royalty payments with respect to Energean Israel’s original acquisition of the block. Second, 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 Stena Icemax drillship will drill the wells. It can drill in water depths up to 10,000 ft.