Business
Significant New Gas Discovery at Karish North
Significant New Gas Discovery at Karish North.
About this update from Energean Plc
[{"type":"text","content":"\n \nRNS Number : 1271W Energean Oil & Gas PLC 15 April 2019 \n\n \n \n \nEnergean Oil & Gas plc\n(\"Energean\" or the \"Company\")\n \nSignificant New Gas Discovery at Karish North\n \n \nLondon, 15 April 2019 - Energean Oil and Gas plc (LSE: ENOG, TASE: אנאג), the oil and gas producer focused on the Mediterranean, is pleased to announce that the Karish North exploration well has made a significant gas discovery.\n \nPreliminary analysis indicates:\n \n· Initial gas in place estimates of between 1 Tcf (28 Bcm) and 1.5 Tcf (42 Bcm).\n \n· High quality reservoir in the B and C sands.\n \nThe well reached an intermediate TD of 4,880 meters approximately 7 days ahead of schedule. A gross hydrocarbon column of up to 249 meters was encountered and a 27 meter core was recovered to surface. Further evaluation will now be undertaken to further refine resource potential and determine the liquids content of the discovery.\n \nDrilling of the initial phase of the Karish North well is now complete. As planned, Energean will now deepen the well to evaluate hydrocarbon potential at the D4 horizon.\n \nOnce operations are completed on Karish North, the Stena DrillMAX will return to drilling the three Karish Main development wells. Following this four well programme, Energean has six drilling options remaining on its contract with Stena Drilling.\n \nThe Karish North discovery will be commercialised via a tie-back to the Energean Power FPSO, which is located 5.4km from the Karish North well. The FPSO is being built with total processing and export capacity of 8 Bcm/yr (775 mmcf/d), which will enable Karish North, and future discoveries, to be monetised. \n \nIn December 2018, Energean signed a contract with I.P.M Beer Tuvia ('I.P.M.') to supply an estimated 5.5 Bcm (0.2 Tcf) of gas over the life of the contract. The contract is contingent, inter alia, on the results of Energean's 2019 drilling programme and today's announcement significantly increases the likelihood of its conversion into a firm contract.\n \nInclusive of the I.P.M. contract, Energean has contracted 4.6 Bcm/yr (445 mmcf/d) of gas sales, leaving a further 3.4 Bcm/yr (330 mmcf/d) of spare capacity in its FPSO for additional sales of discov...