Energean Oil and Gas PLC (LON:ENOG) finished an appraisal of its Karish North offshore exploration well, estimating recoverable resources of 0.9trn cubic feet of gas, as well as 34mln barrels of light oil or condensate.
The Karish North sidetrack, designed to extend the Karish field development project, encountered gas water contact at 4,791m depth with a thin rim of light oil or condensate identified immediately above, and confirmed a 310m hydrocarbon column.
Initial estimates for Energean’s new well ranged between 1 and 1.5 Tcf of gas, for which the best estimate now sits at 1.3 Tcf, adding to the 2.4 Tcf and 33mln barrels of light oil or condensate the FTSE 250 company has already discovered at its Karish and Tanin leases.
The Israel-based energy company has said it anticipates that Karish North will be commercialized via a tie-back into the Energean Power vessel, located 5.4 kilometres away at the Karish field, and also betters the chance for Energean extending its contract to supply 5.5bn cubic meters to power company Beer Tuvia.
Chief executive Mathios Rigas called the result “excellent”, with volumes discovered in the “top half of pre-drill estimates”.
Rigas added that the board's focus is on progressing the Karish development and closing the Edison E&P acquisition, where Energean will sell its suite of Edison E&P subsidiaries in UK and Norway to London-based Neptune for US$250mln in cash.
Shares rose 1% to 909p in early trading on Monday.