Energean Oil & Gas PLC’s Karish North field in the southeast Mediterranean Sea offshore Israel is now certified to contain gross 2C resources of 1.2 tcf (33.7 billion cu m, bcm) of natural gas and 39 million bbl of liquids, a total of 250 MMboe of which 84% is gas. The certification is a 32% increase to Energean’s previous Karish North resource best estimate.
Total gross 2P + 2C across Karish, Tanin, and Karish North is now estimated at almost 3.5 tcf of gas and 82 million bbl of liquids, a total of 698 MMboe, 88% of which is gas. Energean is now converting 0.6 bcm/year (bcmy) contingent gas sales and purchase agreements (GSPA) to firm, delivering about 5.6 bcmy of gas sales on plateau via the 8-bcmy Energean Power floating production, storage, and offloading (FPSO) vessel.
Energean has also submitted an addendum to the Karish and Tanin field development plan (FDP) covering Karish North and envisaging a production capacity of up to 300 MMscfd, initially from one well. Karish North final investment decision is expected in second-half 2020 with first gas in 2022.
The FDP addendum envisages two wells to develop the greater Karish North structure. Phase 1 of the 1,700-m water depth Karish North development will include drilling one well tied back to the Energean Power FPSO for the delivery of first gas in 2022. Phase 2 will include drilling a second production well around 2025 to optimize gas recoveries.
Best estimate gas initially in place (GIIP) for Karish North is now 1.7 tcf. In the competent persons report (CPR) that certified the new best estimate, Karish North resources are classified as contingent ahead of FID being taken on the project. Once FID has been taken resource volumes are expected to be reclassified as reserves, to the extent that they are underpinned by GSPA.
Estimates are based on results of Karish North exploration and appraisal campaigns completed in 2019, coupled with an analysis of recently reprocessed and recalibrated 3D seismic. The uplift in resource volumes largely results from the new conclusion that the Karish East structure is a part of the Karish North and Karish North-East structures, which were included in Energean’s original resource estimates.
Karish North reservoir properties are similar to Karish main.