Energean PLC (LSE:ENOG) told investors it will drill more wells offshore Israel as it has extended its rig contract.
The company, in a statement, said it had exercised an option in its contract with Stena Drilling for two further wells, which will be added to the 2022 campaign.
It comes as the company reported operations at the KM-04 appraisal well were successfully completed ahead of schedule and below budget.
“We have exercised our options with Stena to drill a further two wells, commencing with Hermes, in line with our goal to continue to provide competition and security of supply in the local Israel gas and energy markets,” said chief executive Mathios Rigas.
“The exercise of these options, will help us to reach our target to double our Israel gas resource base in order to also export to the broader region of the Eastern Mediterranean and beyond."
One of the two new wells will target the Hermes prospect whilst the plan for the second is still under consideration and, according to Energean, will be largely contingent upon the results of the Hermes well.