Kerogen Capital invests in Energean Israel

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Kerogen Capital invests in Energean Israel

Wednesday, Feb 15, 2017

Energean Oil & Gas is pleased to announce that Kerogen Capital has committed toinvestan initial US$50 million in Energean Israel, a subsidiary of Energean, ahead of the planned $1.3 billion development of the Karish and Tanin gas fields, offshore Israel.

Energean Israel is the operator of and holds a 100% interest in each of the Karish and  Tanin licences, acquired from Delek Group in December 2016, for an upfront consideration of $40mm as well  as $108.5mm in contingent  payments.  Proceeds  from  Kerogen’s investment  in  Energean  Israel  will  finance  the  acquisition  and  key  workstreams  to
investment  sanction  including  FEED  studies  and  the  Field  Development  Plan  currently being prepared in cooperation with TechnipFMC. The fields contain at least 2.4 Tcf of Gas contingent resources (NSAI report), and will be developed through an FPSO that will be the first to be installed and operated in the East Mediterranean. The gas produced from the fields will supply Israel’s growing domestic gas market, with first gas expected in 2020.

Kerogen’s  investment  is  subject  to approval  by  the Israeli  Government,  after  which Kerogen will own a 50% interest in Energean Israel with Energean holding the balance. It is  intended  that  Roy  Franklin  OBE,  Kerogen  Executive  Board  Member,  will  become  Non Executive Chairman of Energean Israel.

Energean Group Chairman & CEO,  Mr. Mathios Rigas, commented:

“We are delighted to welcome Kerogen to the Karish and Tanin project, planned to deliver gas to a rapidly growing market in 2020 for the benefit of Israeli domestic consumers and the   economy.   Energean   has   already   commenced   negotiations   with   potential   gas consumers in Israel and is progressing rapidly the Field Development Plan that we expect to submit to the Israeli Government by May 2017 with an intention to FID the project by year end 2017.

“We  believe  Israel  is  an attractive  destination  for  energy  investment  offering  exciting growth opportunities through the development of Karish and Tanin, as well as through the additional  exploration  potential  in  offshore  Israel,  all  of  which  are  underpinned  by  a supportive government policy and favorable financing environment.”

Roy Franklin, Kerogen Executive Board Member, commented:

“Energean’s track record speaks for itself. The company has successfully redeveloped the Prinos  complex  in  Greece,  increasing  reserves  and  production  substantially.  Kerogen intends to collaborate with Energean to deliver a successful development of the Karish and Tanin fields in Israel.

“This  investment  provides  Kerogen  with  exposure  to  a  large-scale,  low  break-even discovered  gas  resource  located  within  an  OECD  country,  which,  as  a  near-term development, can benefit from today’s deflationary cost environment.”

 

Source: energean.com

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