# Energean production is 15% ahead of guidance

- Link: https://www.directorstalkinterviews.com/energean-production-is-15-ahead-of-guidance/412992069
- Published: 2021-05-24T07:27:18+01:00
- Author: Giles

**Energean plc** (LON:ENOG, TASE: אנאג) has this morning provided an update on recent
operations and the Group’s trading performance in the 3-months to 31st March 2021.

**Highlights**

·    Production in the four-months to 30 April 2021 was 44.2 kboepd (72% gas)

o  15% ahead of the mid-point of full year guidance

o  Guidance increased to 38 – 42 kboepd (from 36 – 41 kboepd)

·    First production from Karish now expected in mid-2022 following the re-introduction
of enhanced COVID-19-related restrictions in Singapore

o  Core focus on optimising the revised timetable with approximately 30 improvements
being considered for implementation and not reflected in the schedule

·    Final Investment Decision (“FID”) taken on two growth projects, offshore Israel:

o  $70 million second oil train that will enable increased production of approximately
5 million barrels of hydrocarbon liquids per year at minimal incremental operating
costs

o  $40 million second gas sales riser, which will enable gas production at the full
8 Bcm/yr capacity of the FPSO

·    Rig contract award for the 2022/2023 five-well growth drilling programme, offshore
Israel, is expected to be signed shortly

o  Targeting more than 1 billion barrels of oil equivalent of prospective resources

o  Athena well on Block 12 expected to spud in 1Q 2022

·    FID taken on the revised Epsilon project, offshore Greece:

o  Tieback to existing Prinos infrastructure with first oil expected around year-
end 2022

·    Greek parliamentary approval has been granted for the Prinos area funding package.
Investment targets:

o  Unlevered IRRs in excess of 30%

o  Peak production rates in excess of 10 kboepd

o  Extending the life of the fields as a pre-cursor to the implementation of carbon
capture and underground storage (“CCUS”)

·    $122 million of receivables collection in Egypt December 2020 – April 2021 (
inclusive), following closing of the acquisition of Edison E&P in December 2020

·    At 30 April 2021, following the refinancing of Energean Israel Limited’s project
finance facility and term loan on 29 April 2021, Energean had cash resources of 
$1.1 billion, providing financial flexibility and ensuring that all planned activities
are fully-funded

·    2021 year-end net debt guidance reduced to between $1.9 billion and $2.0 billion(
from $2.0 billion to $2.2 billion)

> **Mathios Rigas, Chief Executive of Energean commented:**
> **“**Although COVID-19 continues to present challenges, we continue to deliver
> upon all of our promises that are within our control. Our production is 15% ahead
> of guidance, we have taken Final Investment Decision on three low-cost, high-return
> organic projects and have $1.1 billion of cash on our balance sheet, providing
> financial flexibility and ensuring that we are fully-funded for all of our planned
> investments.
> Due to the ongoing impact of COVID-19 in Singapore, we are prudently updating 
> our guidance for Karish first gas to reflect revised forecasts from our EPCiC 
> contractor, TechnipFMC; but we continue to work together to improve the timetable.
> Although unfortunate, the revised timetable should not have a material impact 
> on the 15+ year secured revenue stream of our Israeli gas business.
> In the near-term, we expect to sign a rig contract for our Israel-growth programme,
> commencing 2022, and with the potential to double the size of our resource base.
> We have also recently received Greek parliamentary approval of the Prinos area
> funding package, which will enable us to extend the productive life of the area
> as a precursor to the implementation of our carbon capture and eco-hydrogen plans.”

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