Page 13 - Euroil Week 36 2019

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NEWS IN BRIEF
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to Klaipėda LNG terminal in September - 3 small carriers and the same number of large (conventional) carriers. Among them is the LNG carrier Stena Clear Sky, which will arrive to Klaipėda for the rst time in mid- September.
e regasi cation services provided
by Klaipėda LNG terminal are utilised by Lietuvos Energijos Tiekimas, Achema, Imlitex, and at the end of September the rst cargo of Eesti Energia will reach Klaipeda.
KN, September 12 2019
Hurricane reports onshore UK oil find
UK-based Hurricane Energy has reported an oil nd at its Lincoln Crestal site in Lancaster a er well tests.
Testing of the Lincoln Crestal well recorded a maximum stable owrate of 9,800 stock tank barrels of oil per day with the use of electrical submersible pumps. e well owed at an average rate of 4,682 stb/d under natural conditions. No formation water was produced.
Lincoln Crestal is the second well in
a three-well programme on the Greater Warwick Area (GWA). e well was spudded on July 12 2019 and was drilled to a total depth of 1,780 metres TVDSS. It included
a 720-metre horizontal section of fractured basement reservoir.
e well will now be suspended, subject
to regulatory approval, with long term gauges installed to test interference with future GWA wells. It is then planned to be tied-back to
the Aoka Mizu FPSO during 2020, subject
to further technical evaluations, regulatory consent and nal investment decision by the joint venture. Production from the tie-back would generate reservoir data to be used in planning future phases of development.
e Transocean Leader semi-submersible rig will now move to the location for the third well in the 2019 GWA drilling programme, 204/30b-A ‘Warwick West’.
“We are delighted with the results of the Lincoln Crestal well. We have con rmed the presence of light oil which can be produced at commercial rates. e Lincoln Crestal well is now planned to be tied back to the Aoka Mizu FPSO next year. is would make Lincoln the second producing basement eld in the UK,” Hurricane CEO Robert Trice said. “Based
on the result of the 2016 Lincoln well, RPS Energy assigned 2C contingent resources
of 604 million barrels of oil equivalent to Lincoln. is successful result brings us closer to monetising this huge resource.”
Hurricane Energy, September 12 2019
Energean cuts output guidance, swings to loss
East Mediterranean-focused Energean Oil & Gas says it is on track for rst gas in Israel, but has reported an interim loss and has slashed its annual production guidance.
Energean is currently developing the Karish and Tanin o shore gas elds in Israel, and is on schedule to porudce rst gas at the project in the rst quarter of 2021.
On the nancial front, revenue for the six months to June rose 52% year-on-year to $40.0mn, with Energean producing 3,920 barrels of oil per day from assets in Greece.
However, Energean has reduced 2019 guidance to 3,400-3,600 barrels a day,
from 4,300 barrels to 4,800 barrels before. Energean needed to carry out some “heavy li ” operations, which could not safely be done over live platforms, meaning some wells have been shut-in since June while this work is carried out.
Energean has also cut 2019 development and production capital expenditure guidance by $40mn, to between $70mn and $80mn, owing to a revised spending programme in Greece.
Energean posted a pretax loss of $3.1mn from a $82.1mn pro t the year prior, a er the non-repeat of a gain on a derivative worth nearly $100mn.
In July, Energean announced the $750mn acquisition of Edison Exploration & Production SpA, which includes producing assets in Egypt, Italy, Algeria, the UK, and Croatia, as well as development assets. Energean expects this deal to complete in the last quarter of 2019.
CEO Mathios Rigas said: “We are on track and on budget to deliver rst gas from the Karish Tanin development in rst quarter 2021 having delivered key milestones in the project, discovered more gas to monetise through the successful Karish North well
as well as making good progress elsewhere across the portfolio.
“ e Edison transaction announced
in July is on track to complete before the end of this year, at which point Energean will become a company of considerable scale in the Mediterranean with pro-forma 2P reserves of 639 million barrels of oil equivalent, weighted 80% towards gas, further enhancing our energy transition strategy.”
“With the addition of the Edison portfolio, Energean now has a signi cant number of new investment opportunities and, as part of the integration process, we are reviewing all capital allocation options to ensure that investment is prioritised towards those projects which o er the highest returns. We look forward to a busy second half to what has so far been a very successful and transformational year at Energean,” Rigas continued.
September 12 2019
IGas back in black in the first half
UK explorer IGas posted an interim pro t for 2019, thanks to higher cash ow, it said in a September 12 statement.
Post-tax pro t reached £0.8mn ($1mn), versus a £1.2mn loss in the rst half of 2018. ere was an uptick in revenues to £21.2mn, from £21.1mn a year earlier, while operating costs shrank to £9.7mn from £10.3mn.
Adjusted ebitda increased to £7.7mn from £6.0mn, and IGas managed to cut its net debt to £5.9mn from £7.4mn. Output was stable, at 2,360 barrels of oil equivalent per day compared to 2,292 boepd in the rst half of last year.
“We have had a good performance from our existing producing assets in the rst half of the year and we continue to generate strong operating cash ow,” CEO Stephen Bowler commented. “From the results at Springs Road, we now know we have a world-class resource and early indications are that we can attain signi cant gas ow from this basin.”
IGas is awaiting full analysis of well data at its Springs Road site in North Nottinghamshire so it can proceed with appraisal work.
September 12 2019
Week 36 12•September•2019
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