Energian announces: We have found natural gas, probably in commercial quantity

Good news for the Israeli energy economy: Energian announces the discovery of natural gas in Block 12. Meaning: The discovery leads to high certainty for inventions of almost 60 BCM in the "Olympus" area (Block 12 and the other prospects in the Crocodile Reservoir) and opens many options for sale to the local and regional market

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09/05/2022

Monday, 09 May 2022, 09:56 Updated: 10:12

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Energian announces the commercial discovery of gas in a drilling carried out at the Athena well in Block 12.

The discovery in Athena includes an estimated amount of gas of about 8 BCM, and it significantly increases the certainty of the presence of an additional 50 BCM in the entire Olympus area under the company's franchise. (Includes block 12 and the parts that have not yet been drilled in the crocodile - attached map). In total, the company estimates that this is about 58 BCM of gas for commercial use.

The development of "Athena" for the benefit of gas commercialization could be carried out in the short term by connecting to the Energian Floating Rig (FPSO), which would increase the profitability of developing a crocodile shark reservoir.

Alternatively, it could be done as part of a new and more extensive development of the "Olympus" area.

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Map of the "Olympus" area where natural gas is located (Photo: PR)

To Europe via Cyprus or Egypt

Following the discovery, Energian is exploring a number of options for commercializing gas in the Olympus area, for local customers and for export, including:

• New agreements in the Israeli domestic market, based on continued market growth.

• Sales on a SPOT basis (immediate sale on demand and availability).

The SPOT agreement was signed with the IEC in March 2022.

• Development of the Memorandum of Understanding signed with the Egyptian gas company EGAS for the sale of up to 3 BCM per year, into a binding agreement.

• Export to other countries in the region and in Europe through pipes and drains via Cyprus and / or Egypt.

It should be noted that the gas produced from Block 12 is not subject to the payment of royalties to the original sellers of shark and crocodile franchises, which will lead to an 8% increase in revenue for the same amount of gas sold, relative to shark and crocodile gas.

Matthews Riggs (right) and IEC CEO (outgoing) Ofer Bloch sign an agreement to supply natural gas from Energian to the IEC (Photo: PR)

51 days of drilling

Matthews Riggs, CEO of Energian

: "We are pleased and proud to announce the new gas discovery at the 'Athena' well, and the potential in the entire 'Olympus' area (Block 12 and Crocodile Reservoir).

Accordingly, we are considering different commercial strategies, both for "Athena" and for the whole "Olympus", including sales to the domestic market and various export routes.

This discovery, along with reducing the risk of uncertainty about additional gas at any Olympus, strengthens the place of the Eastern Mediterranean as a significant global factor in gas exploration, and is a testament to our commitment to competition and supply stability to the region.

This discovery enables the optimization of our Israeli portfolio, and is an achievement of one of our important milestones for 2022. "

The drilling of the "Athena" well was done in Block 12, which is all under the license of Energian.

The well is 20 km from Shark Reservoir and 20 km from Crocodile.

The drilling was carried out at a depth of 1,769 meters in the sea, lasted 51 days, and cost less than $ 35 million.

This is the fifth consecutive well that Energian has successfully drilled in Israel.

The "Olympus" area of ​​Energian includes the 12th block and the additional prospects in the power of a crocodile.

The existing and expected discoveries in this area are all of similar geological characteristics.

Therefore, Banergian is confident that the discovery in Athena has significantly reduced the uncertainty about the rest of the region, so that the total amount of gas estimated at about 58 BCM.

Satellite photography of the drilling area (Photo: PR)

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Tags

• Natural gas

• energy

• Drilling