Energean Moves into Profit, Cuts Output Guidance

Eastern Mediterranean focused explorer Energean reported March 22 a 45% year-on-year rise in output to 4,053 barrels/day, all in Greece; and an operating profit of $23.8mn, up from a loss of $13.4mn in 2017. Much of its managment time was devoted to financial and practical activities related to future production off Israel.

But delays at the Epsilon extended-reach well have meant a cut in output guidance for this year, to 5,000-5,500 b/d. Operating cost/barrel fell by about a third, from $24.7/b to $17.6/b.

The company also began exploration work on its new licences in western Greece and Montenegro and added to its proven plus probable reserves and 2C resources, giving it 405mn barrels, or a combined 35% year-on-year increase.

CEO Mathios Rigas said: "In 2018 we made substantial progress in advancing our flagship Karish and Tanin development project [0ffshore Israel] and remain on-track to deliver first gas in 1Q 2021. We secured $13bn of future revenues by signing 12 gas sales agreements to deliver a total volume of 4.6bn m³/yr, firmly underpinning the project’s economics." He said that the company continued "to target value enhancing opportunities in the Mediterranean area and aim to replicate the growth achieved over the last decade.”