Wednesday 18 November 2020

Energean plc (LSE: ENOG, TASE: אנאג (is pleased to provide an update on recent operations and the Group’s trading performance in the 9-months to 30 September 2020 together with updated guidance for the full year.

Mathios Rigas, Chief Executive of Energean commented:

“In the third quarter, we have continued to make solid progress on Karish, our flagship gas project in Israel, which is scheduled to deliver first gas in 4Q 2021. The project’s economics, cash-flows and returns profile have been further enhanced through increasing firm gas sales by 1.4 Bcm/yr, to 7.0 Bcm/yr, and revising the expected liquids production plateau to an average of 28 kbpd, from previous estimates of less than 10 kbpd.

We look forward to completing our acquisition of Edison E&P in December 2020, which, alongside Karish, will further secure our long-term, resilient cash flow profile and option-rich portfolio. Following completion of the deal, approximately 70% of our future production will be sold under long-term gas sales agreements that will largely insulate our revenues against commodity price volatility and enable us to realise our medium-term ambition to pay a meaningful and sustainable dividend.

We have also switched to 100% renewable energy in powering our assets in Prinos, which has driven a 100% reduction in the asset’s Scope 2 carbon emissions and an approximate 45% reduction of Scope 1 & 2. We are exploring opportunities to roll this strategy out across all operated assets in the post-completion portfolio, which will mark a near-term step towards our net zero goal. We are confident that we can achieve this target and are also assessing a number of other options that would leverage our upstream expertise, such as carbon capture utilisation and storage, to help to deliver a lower carbon world.”

Highlights

• The Karish development was 85% complete as of 26 October 2020

• In Singapore, all main modules have been lifted onto the hull of the Energean Power FPSO, signalling completion of the first major milestone of the FPSO integration campaign

• Independent Competent Persons Report (“CPR”) confirms gross (Energean 70%) 2P reserves of 98 Bcm (3.5 Tcf) of gas and 99.6 million barrels (“MMbbls”) of hydrocarbon liquids in Karish, Karish North and Tanin

• Total estimated working interest 2P reserves and 2C resources across the Energean portfolio, inclusive of Edison E&P, stand at 850 million barrels of oil equivalen (“MMboe”), approximately 70% of which is gas

• Liquids production at Karish now expected to average 28 kbpd (gross) on plateau with the uplift expected to have no discernible impact on scope 1 and scope 2 carbon emissions from the field

• Karish North Field Development Plan (“FDP”) approved by the Israel Ministry of Energy during August 2020

• Switched to 100% renewable energy in powering our Prinos asset, which has driven a 100% reduction in its Scope 2 carbon emissions and a c.45% reduction of Scope 1 & 2 emissions

• In August 2020, Energean was rated “A” under the MSCI’s ESG rating system and in September 2020, Sustainalytics increased its rating on the Company to “Outperformer”

• At 30 September 2020, Energean had cash and undrawn facilities of $771 million

• On 11 November 2020, Energean increased the facility size of its Egypt RBL by $60 million, to $280 million