Energean Oil and Gas PLC, London, plans to spud three wells in Israel and conduct seismic work in Greece as part of its 2020 exploration plan.
In Israel, the Zeus exploration well, targeting 0.6 tcf of gas initially in place (GIIP), is expected to spud in March. Following drilling, the Stena Drilling rig will be released to another operator for a 3-4 well campaign in the region, after which time Energean plans to secure the rig for the remaining options under its contract.
Two additional exploration wells are planned this year, contingent on the results from Zeus. Prospects include Athena (0.6 tcf GIIP, Block 12), Hera (0.4 tcf GIIP, Block 12), and Poseidon (1.0 tcf GIIP, Block 21).In 2019, the company drilled three Karish Main development wells offshore Israel. Completions and trees are to be installed before the end of this year’s first quarter. All three wells will integrate with the subsea infrastructure and hook up to an FPSO that will be installed 90 km from shore, with 800 MMscfd capacity. An updated Field Development Plan will address the tie-back of the 0.9 tcf (25 bcm) plus 34 MMbbl Karish North discovery in this year’s first half. The development is on track to deliver first gas into the Israeli domestic market in the first half of 2021. Energean is operator with 100% interest.
For Energean, total reserves and contingent resources in the country have seen a 34% year-on-year increase, to 106 MMboe from the new discoveries in the Epsilon reservoir and reprocessing and interpretation of data at Katakolo. Prinos Area assets are under strategic review and as a result, 2020 production is expected to be 2,000-2,500 bo/d, a decline from 3,300 bo/d in 2019.
During 2019, all three Epsilon Lamda platform development wells were successfully drilled. Additional pay was encountered in the deeper and dolomic zones of the Epsilon reservoir, resulting in a reserve and contingent resource increase of 16 MMboe. At Katakolo, award of the EIA is expected in this year’s second quarter with potential final investment decision thereafter. Katakolo reserves are expected to be 14 MMbbl, a 33% increase from 2019.
A tender for the company’s underground gas storage project in South Kavala is expected this year following a fourth-quarter 2019 amendment to the law passed Dec. 10 that could make the gas field the first underground gas storage infrastructure in the country.
Elsewhere, offshore Montenegro where Energean is operator in Blocks 4219-26 and 4218-30 (100%), seismic data have identified shallow gas and deeper carbonate prospects. The Ministry of Economy in Montenegro will extend Energean’s first exploration phase to Mar.15, 2021, with a drill-or-drop decision by year-end.
