Energean shares dipped 2% to 1,186p in late morning trading on Monday after the company reported the extension of its 2022 growth drilling programme by exercising its option to drill two additional wells with Stena Drilling Limited.
The first well is set to target the Hermes prospect at Block 31 and is scheduled to spud in August, targeting the Tamar A sands. Hermes forms one sector of a larger cluster of structures similar to how the Athena discovery is one sector of the Olympus area.
Energean said the target for the second well is still under consideration and is largely contingent on the results from the Hermes well.
Energean also provided an update on the initial results of its KM-04 appraisal well, and announced that the project was completed 15 days ahead of schedule and $9 million below budget at a total expense of $36 million.
The KM-04 well reportedly encountered gas and associated liquids in the previously undrilled fault block between Karish Main and Karish North, alongside gas discovered in the A-sands on the flanks of the Kairsh Main structure, in which the sands were tested and fluid samples were obtained.
In addition, an oil rim was confirmed in the central sector of the field, with thickness located in the lower end of the pre-drill expectation range of 5 to 10 metres against 0 to 100 metres pre-drill.
The company noted that a sample of the oil was obtained for testing, and the group expects to commercialise the oil volumes through the existing well stock.
Energean added that additional analysis would commence to further refine reserve volumes and the liquids-to-gas ratio across the Karish lease, with the Stena IceMAX set to complete the next development well before moving to Hermes in August 2022.
“Operations at the KM-04 appraisal well have been successfully completed ahead of schedule and below budget, meeting the primary objectives set pre-drill,” said Energean CEO Mathios Rigas.
“We confirm today the extension of our 2022 growth drilling campaign, on the back of success at Athena last month. 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.”
“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.”
