Energean plc announced that it has extended its growth drilling programme by exercising its options to drill two further wells with Stena Drilling Limited ("Stena") and to provide an update on the initial results of the KM-04 appraisal well. Additional Drilling Targets; Energean has exercised its options to drill two further wells as part of its 2022 growth drilling campaign.
The first well will target the Hermes prospect, located in Block 31, and is expected to spud in August 2022. The primary target is the Tamar A sands. Hermes forms one segment of a larger cluster of structures similar to how the Athena discovery is one segment of the Olympus Area. The target for the second well is still under consideration and is largely contingent on the results of the Hermes well. KM-04 Appraisal Results; Energean confirms that drilling of the KM-04 appraisal well has been safely and successfully completed. The well was completed 15 days ahead of schedule and $9 million below budget at a cost of $36 million. The primary objectives of the well were to; further appraise gas volumes in the flanks of the structure; and reduce uncertainties associated with liquid content in the central fault blocks. The KM-04 appraisal well achieved the following; Gas and associated liquids were encountered in the previously undrilled fault block between Karish Main and Karish North; Gas was encountered in the A-sands on the flanks of the Karish Main structure, these sands were tested and fluid samples obtained; and An oil rim was confirmed in the central part of the field, with thickness towards the lower end of the pre-drill expectation range (5-10metres vs. 0-100metres pre-drill). A sample of oil was obtained for testing. Energean expects to be able to commercialise the oil volumes through the existing well stock. Additional analysis will now be undertaken to further refine reserve volumes and the liquids-to-gas ratio across the Karish lease. As planned, the Stena IceMAX will now move to complete the next development well before moving to Hermes in August 2022.