Energean announced half year results for the period ending up in June 30.

The company achieved positive results at the second and third NEA/NI development wells in Egypt. This helped reinforce the company’s view that the results from NEA#6 would have no read-across to the remainder of the field.

NEA#5 came onstream in July and is now producing in line with its pre-drill expectations, whilst PY#1 testing has delivered results in line with expectations. The remaining two wells are expected to go onstream in 2023.

“On our growth projects, which target to increase production to 200 kboed by H2 2024, Karish North and the FPSO capacity increase projects (Israel), NEA/NI (Egypt) and Cassiopea (Italy) are all progressing well. We remain focused on delivering our near-term targets of 200 kboed, $2.5 billion of revenues, $1.75 billion of EBITDAX and leverage of c.1.5x,” Mathios Rigas, Chief Executive of Energean, commented.

“We are also preparing for FID on Katlan8 later in the year. Given the export potential from the Katlan licence9, we plan to engage with local and international buyers to market our gas. Elsewhere, we look forward to the spudding of the Orion-1X exploration well next quarter, offshore Egypt, with our partner Eni. Finally, in line with our stated net zero policy target, our emissions intensity further reduced by 36% to 11.0 kgCO2e/boe versus H1 2022,” Rigas noted.

In Egypt, production in July averaged 26,500 barrels of oil equivalent per day (boe/d) following the start-up of NEA#5 in July. Production from NEA#5 has performed in line with expectations at 25 million standard cubic feet per day (mmscf/d) 4,300 boe/d.

The NEA/NI development reached first gas in March 2023. Two wells are currently onstream, NEA#5 and NEA#6, the former which was brought online in July 2023. NEA#5 is producing in line with pre-drill expectations of around 25 mmscf/d. Of the remaining two wells, which are expected to come onstream later this year, PY#1 was completed and tested at 20 mmscf/d, in line with prognosis, in August 2023, and NI#1 is expected to spud in September 2023.

At 30 June 2023, net receivables (after provision for bad and doubtful debts) in Egypt were $143.1 million (31 Dec 2022: $116.5 million), of which $107.8 million (31 Dec 2022: $40.9 million) was classified as overdue.