Energean: Karish North deposit to yield 25 billion cubic meters of natural gas

Higher than the initial estimates are the natural gas reserves discovered by Energean in the Karish North deposit, off the coast of Israel.

Specifically, according to figures released today, confirmatory drilling showed that there are 30-51.6 billion cubic meters of gas at the site, compared to 28-42 billion at the first estimate. The minable quantities are estimated at 25 billion cubic meters.

These amounts are to be added to the 68 billion cubic meters of natural gas and 33 million barrels of proven and potential reserves already discovered in the Energean’s Karish and Tanin licenses. The discovery in Karish North will be developed by connection to the “Energean Power” floating unit (FPSO), which is 5.4 kilometers from the mine, has a capacity of 8 billion cubic meters per year and will operate from 2021 in Israel’s EEZ.

Energean has signed definitive contracts for quantities of 4.7 billion cubic meters a year, and has in principle also signed with Mrc Alon Tavor Power, Ltd., the consortium that has won the tender for the privatization of the Alon Tavor power plant. According to company sources, the new contracts that Energean seeks to sign will focus on both the Israeli market and exports to regional markets, including Cyprus, to which Energean has proposed to supply gas through a pipeline from “Energean Power”.

Mathios Rigas, Managing Director of Energean Group, commented: “This is an excellent result, as confirmatory drilling in the Karish North confirms our initial estimates to the highest extent and increases the minable quantities of gas in Israel by 25 billion and by 34 billion barrels of light crude.

In addition, the development is yet another confirmation to our shareholders and allows us to continue our efforts to capitalize on additional volumes of gas to make full use of the FPSO’s 8 billion cubic feet per year of FPSO “Energean Power”. We are focusing our efforts on completing the acquisition of Edison E&P, while advancing the development of the Karish field. “