Energean announce significant new gas discovery at Karish North

The well reached an intermediate TD of 4880 m approximately 7 days ahead of schedule. A gross hydrocarbon column of up to 249 m was encountered and a 27 m core was recovered to surface. Further evaluation will now be undertaken to further refine resource potential and determine the liquids content of the discovery.

Drilling of the initial phase of the Karish North well is now complete. As planned, Energean will now deepen the well to evaluate hydrocarbon potential at the D4 horizon.

Once operations are completed on Karish North, the Stena DrillMAX will return to drilling the three Karish Main development wells. Following this four well programme, Energean has six drilling options remaining on its contract with Stena Drilling.

The Karish North discovery will be commercialised via a tie-back to the Energean Power FPSO, which is located 5.4 km from the Karish North well. The FPSO is being built with total processing and export capacity of 8 billion m³/yr (775 million ft³/d), which will enable Karish North, and future discoveries, to be monetised.

In December 2018, Energean signed a contract with I.P.M Beer Tuvia (‘I.P.M.’) to supply an estimated 5.5 billion m³ (0.2 trillion ft³) of gas over the life of the contract. The contract is contingent, inter alia, on the results of Energean’s 2019 drilling programme and today’s announcement significantly increases the likelihood of its conversion into a firm contract.

Inclusive of the I.P.M. contract, Energean has contracted 4.6 billion m³/yr (445 million ft³/d) of gas sales, leaving a further 3.4 billion m³/yr (330 million ft³/d) of spare capacity in its FPSO for additional sales of discovered gas at Karish and the tie back of future discoveries.

Karish North spudded on 15 March 2019 utilising the Stena DrillMAX, a sixth generation drillship capable of drilling in water depth of up to 10 000 ft.

Mathios Rigas, CEO of Energean said: “We are delighted to be announcing this significant new gas discovery at Karish North, which further demonstrates the attractiveness of our acreage offshore Israel. We are building the Energean Power FPSO with spare capacity, which will enable us to quickly, safely and economically develop both Karish North and future discoveries. We have already signed a contingent contract to sell 5.5 billion m³ (0.2 trillion ft³) of this new resource, and our strategy is now to secure the offtake for remaining volumes. We continue to see strong demand for our gas, which we believe will be supported by today’s announcement.”

Read the article online at: https://www.oilfieldtechnology.com/exploration/15042019/energean-announce-significant-new-gas-discovery-at-karish-north/