News from HAEE | August 2018
News from HAEE | August 2018

Energean: Independent certification of reserves and resources in Israel

Energean Oil and Gas plc (LSE: ENOG) - the independent oil and gas exploration and production company, focusing on the Eastern Mediterranean - is pleased to announce that it has received an updated independent Competent Persons Report from Netherland Sewell & Associates (“NSAI”) for its Israeli portfolio. The updated CPR includes the certification of 63 bcm (2.2 Tcf) of 2P reserves and 7.5 Tcf of gross prospective resources and is the first assessment of prospective resources in the new Blocks (12, 21, 22, 23 and 31) that were awarded as part of the recent offshore licencing round. The updated CPR includes 63 bcm (2.2 Tcf) of gas and 31.8 million barrels of liquids (gross, Energean 70%) of 2P reserves in the Karish and Tanin fields. Energean’s independently certified net 2P reserves are now 349 mmboe, an increase from the 51 mmboe estimated when Energean undertook its London Stock Exchange listing in March 2018. Contingent resources in the Karish field of 5.4 bcm (0.2 Tcf) of gas and 1.0 million barrels of liquids (Gross, Energean 70%) are recognised. Remaining contingent resource relates to the Karish B reservoir. Overall 2P reserves plus contingent resources across the Karish and Tanin leases remain the same. The updated CPR also recognises gross recoverable prospective resources of 212 bcm (7.5 Tcf) of gas and 101 million barrels of liquids (Energean 70%), consistent with Energean’s view that its acreage contains an attractive number of near-field prospects where potential discoveries can be quickly and economically monetised. The Karish FPSO is being built with gas production and processing capacity of 8 bcm/yr. Energean Israel (Energean 70%) and has sold 4.2 bcm/yr of discovered gas volumes, leaving 3.8 bcm/yr of available FPSO capacity for the potential tie-back of future discoveries. Energean recently committed to drill a well in the Karish North exploration prospect. NSAI estimates that the Karish North well will target 38 bcm (1.3 Tcf) of gas and 16.4 million barrels of liquids (gross, Energean 70%) and has a 69% volume weighted probability of geological success. The option to drill additional exploration wells remains open; Energean has six options remaining within its Stena drilling contract.

Mathios Rigas, CEO of Energean Oil & Gas, commented: “We are pleased to announce that our independent reserves auditors have identified 7.5 Tcf of prospective resources across our Israeli acreage with a very high probability of geological success, across which we have limited exploration capital commitments. The outcome is consistent with Energean’s view that our portfolio 2 contains multiple attractive near-field exploration opportunities that could deliver significant upside alongside with our existing Karish and Tanin development. The conversion of contingent resources demonstrates our commitment to increasing reserves and underpins a more-than-six times increase in our independently verified 2P reserves at IPO.

 

IPTO ready to take action on the electrical interconnection between Crete and Attica 

IPTO is ready to take active action on the electrical interconnection between Crete and Attica, after the failure of an agreement with Euroasia.

Officials of Greece’s power grid operator IPTO, which is at odds with the Euroasia Interconnector consortium for control of the Athens-Crete link’s development, skipped the meeting some days ago, claiming that there was no chance of any agreement on the issue with Euroasia Interconnector, a consortium of Cypriot interests.

The European Commission remains vigilant regarding the developments in the project for the power connection between Attica and Crete, and sources say it is determined to exhaust all avenues for it to proceed as a project of common interest (PCI).

 

Trump and Juncker agree to boost US LNG exports to Europe

The United States and the European Union have agreed to work towards boosting natural gas trade, an issue that President Donald Trump pressed forcefully at the latest NATO meeting in Brussels.

Shipping more U.S. gas to Europe is one of the matters European Commission President Jean-Claude Juncker agreed to work towards at a White House meeting with Trump, which yielded progress in a trade dispute between the United States and the EU.

 

The first energy efficient island in Greece

Chosen first out of 80 projects to receive €11 million of funding under the EU’s Horizon 2020 research and innovation programme, TILOS is an important research and development initiative. It entails the development and installation, on the island of Tilos, of Greece’s first hybrid power station producing electricity from a wind generator and a solar farm and storing it in batteries.

 

Bloomberg: All-Electric Ships on the Horizon as Rolls Adds Battery Business

Rolls-Royce Holdings Plc has begun offering its own battery-powered ship engines in a move that signals the gathering momentum behind a push toward hybrid and ultimately all-electric vessels.

Fully electric ships, like automobiles, have struggled to penetrate major markets because of their limited battery capacity and a lack of charging infrastructure. Norway has led the way, with the Ampere ferry transporting up to 120 cars across the country’s deepest fjord and Kongsberg Gruppen ASA -- which is buying Rolls’s marine arm -- developing an electric container ship to carry fertilizer 37 miles from a production facility to the port of Larvik.

 

EBRD invests €100 million in Bulgarian Energy Holding’s seven-year bonds

The EBRD has invested €100 million in a new seven-year €550 million bond issue by the Bulgarian Energy Holding (BEH), the state-owned entity which controls the country’s energy assets, including the public suppliers of electricity and gas.

The EBRD’s involvement will help BEH continue its support in relation to key power sector reforms as well as restructure its balance sheet and improve the long-term financial sustainability of Bulgaria’s power sector.

The EBRD bought the seven-year senior unsecured bonds on June 26 2018 and July 31 2018. The bonds started trading on the Euronext Dublin exchange on 28 July 2018 and are expected to start trading on the Bulgarian stock exchange in August 2018. The new bond will be used to refinance the €500 million bond issued by BEH in 2013, which will improve the holding’s financial structure.

As part of the current and previous BEH bond purchase by the EBRD, which took place in 2016, the Bank and the government of Bulgaria have been cooperating on a “Bulgaria-Energy Sector Regulatory Development Programme” which aims to help with market liberalization in line with recent changes in the energy legislation, also partially facilitated by the EBRD. The country aims to liberalize its electricity market in line with the European Union (EU) acquis.

The EBRD’s participation is not only supporting the Bulgarian energy sector but also contributing to the deepening of capital markets, both of which are priorities under the Bank’s strategy for investment in the country. This bond will have the longest tenor issued by a Bulgarian corporate issuer and will be the largest bond listed on the Sofia exchange.

To date, the EBRD has invested nearly €3.9 billion into various sectors of Bulgaria’s economy in about 250 projects. Energy sector investment accounts for about a third of the Bank’s portfolio in the country.

 

PPC signs term sheet of two syndicated bond loans

PPC signed with the Greek banks the basic terms (Term Sheet) of two syndicated loans of 1.1 billion euros and 175 million euros for refinancing existing loans.

In a relevant announcement, on June 21, PPC had announced the approval by the competent Greek Banking Committees of the agreement for the refinancing of the existing lending and the provision of a new financing line of 200 million euros.