Energean PLC highlights solid progress in first three quarters of 2020

Energean PLC () has highlighted its solid progress and growth programmes whilst reporting a trading update for the nine-months ended September 30.

In parallel, the company is advancing the development of the Karish field, offshore Israel, and is acquiring Edison E&P.

Karish was said to be 85% complete, as of October 26, while the Edison transaction is slated to complete in December.

Elsewhere in the business, pro forma production over the nine-month period averaged around 50,000 barrels oil equivalent per day, which is in the upper end of its guidance of 44,500 to 51,500 boepd.

The company said it generated US$252mln of pro forma revenue and cash flow was noted at US$94mln.

“We look forward to completing our acquisition of Edison E&P in December 2020, which, alongside Karish, will further secure our long-term, resilient cash flow profile and option-rich portfolio,” said Mathios Rigas, Energean chief executive.

“Following completion of the deal, approximately 70% of our future production will be sold under long-term gas sales agreements that will largely insulate our revenues against commodity price volatility and enable us to realise our medium-term ambition to pay a meaningful and sustainable dividend.”

Rigas added: “In the third quarter, we have continued to make solid progress on Karish, our flagship gas project in Israel, which is scheduled to deliver first gas in 4Q 2021.

“The project’s economics, cash-flows and returns profile have been further enhanced through increasing firm gas sales by 1.4 Bcm/yr, to 7.0 Bcm/yr, and increasing the expected hydrocarbon liquids production plateau to an average of 28 kbpd, from previous estimates of less than 10 kbpd (Energean: 70%).”