Energean today provides an update on recent operations and the Group's trading performance in the 9-months to 30 September 2021.

Mathios Rigas, Chief Executive of Energean, commented:
"In the third quarter of 2021, Energean continued to deliver excellent operational and financial results. Production was above expectations and combined with the quarter's high commodity prices has yielded strong financial results. We are on track to deliver record full year numbers, with annual revenues expected to be in excess of $450 million and EBITDAX in excess of $190 million.

"Our flagship project Karish remains on track to deliver first gas in mid-2022 and we will spud the first well of our new Israel growth campaign in 1Q 2022. Good progress is also being made across our key development projects in Egypt, Italy and Greece. We remain on target to grow production to over 200 kboed and achieve our medium-term revenue and EBITDAX targets of $2 billion and $1.4 billion, respectively.

"This will position Energean to deliver an industry-leading, sustainable and meaningful dividend.  

"On the ESG-front, we are on track to reduce CO2 emissions intensity by approximately 20% year-on-year and are advancing our plans to accelerate our 2050 net zero target. The pre-FEED at our "Green Prinos" Carbon Capture and Storage project is progressing well and we are also investigating the feasibility of tying back a small scale eco-hydrogen project." 

Israel

Karish Project Progress
Energean remains on track to deliver first gas from the Karish gas development project in mid-2022. At 30 September 2021, the project was approximately 91.8% complete.  

The FPSO is expected to leave the yard in Singapore for Israel in 1Q 2022. This journey will take around 35 days. Hook-up and pre-first gas commissioning will then take approximately three months. 

On 2 November 2021, further to its initiation of arbitration proceedings in August 2021, Dalia served a notice upon Energean purporting to terminate the GSPA, which represents 0.8 Bcm/yr of contracted gas sales. The notice does not specify what date, on Dalia's view, the purported termination takes effect. Alongside the Notice of Termination, Dalia sent a separate letter informing Energean that if the Notice of Termination is determined by the arbitral tribunal to be invalid or wrongly issued, the contract will not have been terminated and Dalia will perform its obligations. Energean wholly rejects the validity of the Notice of Termination. It believes that it was served in breach of Dalia's obligations under the contract. Energean will vigorously pursue all rights at its disposal.

Energean has identified multiple incremental buyers, both domestic and international, for its gas reserves and prospective resources and is confident of selling all volumes profitably.

On 2 November 2021, further to its initiation of arbitration proceedings in August 2021, Dalia served a notice upon Energean purporting to terminate the GSPA (the "Notice of Termination"), which represents 0.8 Bcm/yr of contracted gas sales. The notice does not specify what date, on Dalia's view, the purported termination takes effect.  Alongside the Notice of Termination, Dalia sent a separate letter informing Energean that if the Notice of Termination is determined by the arbitral tribunal to be invalid or wrongly issued, the contract will not have been terminated and Dalia will perform its obligations. Energean wholly rejects the validity of the Notice of Termination. It believes that it was served in breach of Dalia's obligations under the contract. Energean will vigorously pursue all rights at its disposal.

Energean has identified multiple incremental buyers, both domestic and international, for its gas reserves and prospective resources and is confident of selling all volumes profitably.

Drilling Campaign 
Energean's preparatory work ahead of the 2022 drilling campaign is progressing in line with expectations. The first well, Athena on Block 12, is expected to be spudded in 1Q 2022 using Stena Drilling's IceMax rig. Export commercialisation routes are being matured to access international gas prices if (and when) additional volumes become available.

Egypt

In the 9-months to 30 September 2021, working interest production from the Abu Qir area averaged 30.3 kboed (87% gas), with full year production guidance increased to between 28.5 - 30 kboed (from 28 - 30 kboed).

NEA/NI is progressing on budget and on schedule, being 22.1% complete as of 30 September 2021. First gas from one well is anticipated in 2H 2022, with the remaining three wells expected online in 1Q 2023.

At 30 September 2021, net receivables (after provision for bad and doubtful debts) in Egypt were $145.3 million, of which $114 million was classified as overdue. Cash collection from EGPC during 9-months of 2021 was $120 million.
 
Italy

In the 9-months to 30 September 2021, working interest production from Italy averaged 10.0 kboed (42% gas), with full year production guidance increased to between 9.5 - 10 kboed (from 9 - 10 kboed).

In September 2021, ENI began construction of the gas treatment plant for the Cassiopea project (Energean = 40% non-operated interest). First gas from Cassiopea remains on track for 1H 2024 and at peak production will provide more than 30% of the region's gas consumption. In line with Energean's sustainability strategy, the project will, according to ENI, have close to zero emissions and the installation of 1 MWp of photovoltaic solar panels will allow the project to achieve carbon neutrality.

In October 2021, Energean (49%), alongside operator ENI, spudded a sidetrack from an existing development well from the Calipso platform. Calipso is a gas field located in the northern Adriatic Sea and the well is being drilled by the Key Manhattan jack-up rig. 

New gas supply agreement ("GSA") signed with A2A
On 5 August 2021, Energean Italy and A2A S.p.A. entered into a new GSA for the delivery of gas commencing 1 April 2022 (being the effective date of termination of Energean Italy's current GSA with Edison SpA), until 30 September 2023. Under the agreement, Energean will sell its full entitlement production to A2A, which agrees to purchase, take and pay for the quantities. For each of Energean's concessions, gas will be delivered at the relevant entry point to the Italian gas network. The realised price will be the day ahead, PSV (Italian hub) price net of entry costs to the Italian gas network, and has no penalties or liquidated damages (e.g. shortfall) in case of over and under deliveries.

Greece

In the 9-months to 30 September 2021, working interest production from the Prinos area averaged 1.5 kboed (100% oil), in line with full year production guidance at 1.5 kboed.

Energean expects the EUR100 million funding package for the Epsilon development to be finalised in 4Q 2021. First gas is expected in 1H 2023. 

Pre-FEED for the Prinos CCS project is underway and progressing well.
 
United Kingdom

During the first nine months of 2021, production in the UK North Sea was 0.7 kboed (11% gas), ahead of full year guidance of 0.5 kboed.
 
Croatia

In the 9-months to 30 September 2021, working interest production from the Izabela field (Energean 70%) averaged 0.2 kboed (100% gas). 

Energean is currently in FEED for the development of the Irena gas field. If progressed, first gas is anticipated for Q4 2024, generating net working interest production of 3.5 kboed at peak. 
 
ESG
In September 2021, Energean improved its Sustainalytics ESG risk rating by 5.8 points, positioning it 22 out of 256 in the oil and gas producers' industry group, and 11 out of 149 in the E&P industry group. Sustainalytics, a Morningstar company, provides ESG ratings for listed companies across the world.

Also in September 2021, Energean was awarded the 'Best ESG Energy Growth Strategy - Europe 2021' by CFI. 

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