Energean PLC has entered into a conditional agreement with Kerogen Investments No.38 Ltd., an affiliate of Kerogen Capital, to acquire Kerogen’s 30% interest in Energean Israel Ltd. (EISL). A completed deal would see Energean own 100% of EISL’s share capital.
Total consideration includes an upfront payment of $175 million, deferred cash consideration amounts of $155-180 million, and $50 million of convertible loan notes.
The deal would add 2P reserves of 29.5 bcm of gas and 30 million bbl of liquids, representing about 219 MMboe in total to Energean.
The expanded Energean group would have 2P reserves of 974 MMboe (80% gas) and a working interest production trajectory to more than 200,000 boe/d (80% gas), once Karish and Karish North fields are producing at plateau rates.
In October, the living quarter module and the eight pipe rack modules were lifted onto the Energean Power floating production, storage, and offloading vessel at Sembcorp’s Admiralty Yard in Singapore. The vessel is expected to sail away to the 267 MMboe 2P Karish field offshore Israel in third-quarter 2021. The project is expected to deliver first gas in fourth-quarter 2021.
Subject to shareholder, regulatory, and other approvals, Energean expects the deal to close in first-quarter 2021.