Energean announced today, Thursday, May 23, the discovery of natural gas in the Eastern Mediterranean, this time in Egypt. The announcement was made as part of the company's routine quarterly update to the London and Tel Aviv stock exchanges.

This is a 270-foot net-thickness hydrocarbon column in the Abu Madi and BKES-1 formations in the Abu Qir concession in the Gulf of Alexandria, which was discovered by a well drilled from the North Abu Qir PII offshore rig. 

The initial estimate is that the new discovery contains 87–129 bcf of gas and is scheduled to be brought into production during the third quarter of the year.

It will be recalled that Energean in 2019 discovered the Karish North field in the Sea of Israel, which has been in production since February. During 2022, it discovered the Athena, Zeus, Hermes and Hercules deposits, with the first two being recognised as part of the Katlan discovery by the Israeli government, which has also given its approval for Phase 1 development. The Katlan deposit has the potential to be used for export purposes. 

Key developments in the first quarter and outlook

-Daily production for the period was 142 thousand barrels of oil equivalent (+49% year-on-year), 82% of which was in gas. The company maintains its forecast for daily production between 155 and 175 thousand barrels of oil equivalent for the full year 2024.

-Revenue was $413 million (+43% year-on-year), while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDAX) were $259 million (+60% year-on-year). The company will distribute a dividend of $0.3 per share for the period ending June 28.
-Scope 1 and Scope 2 emission intensities decreased to 9 kg of CO2 per barrel of oil equivalent produced, down 19% year-on-year. 

-The Cassiopea offshore gas field, one of the largest gas developments in Italy, is expected to come on production during the summer, while confirmation drilling at the Anchois field in Morocco is scheduled for August.

-An application to obtain a CO2 storage license in Príno is expected to be submitted in June. 
The final investment decision for the development of the Katlan gas field in Israel is expected in the next period. 

"We continue to deliver strong operational and financial results, with production, revenue, and EBITDAX growth year-on-year," said Energean Group CEO Mathios Rigas. In Israel in particular, he said, "Our business remained unaffected by geopolitical developments, with the expected peak in demand for natural gas in the summer leading to production maximisation. In addition, we are pleased with the success of our drilling program at Abu Qir in Egypt with our new discovery." 

Mr. Rigas stressed that the company is consistently pursuing its dividend policy and is focused on: a reliable dividend, improved debt, growth, and a commitment to a zero GHG balance sheet.

"Looking ahead, we have several milestones in our portfolio in Italy, Morocco, Egypt, Greece, and, of course, Israel, where we will start supplying gas under the contract we recently signed," he said.