21st Mar 2019 07:46
LONDON (Alliance News) - The combination of 45% and 29% increases, respectively, in production and the price of oil helped Energean Oil & Gas PLC report significantly higher profit and revenue on Thursday.
Energean produced on average 4,053 barrels of oil per day during 2018, 45% higher than the 2,803 barrels a day achieved during 2017.
The oil was sold at an average price of USD60.3 per barrel, from USD46.7 in 2017. The cost of production also fell by 29% to USD17.6 per barrel.
Looking ahead to 2019, Energean expects average production to be in the range of 5,000 barrels a day to 5,500 barrels a day.
Energean's revenue increased by 56% to USD90.3 million, with pretax profit surging to USD85.3 million from USD25.4 million, in particular helped by a USD96.7 million gain on a derivative from USD25.8 million a year prior.
Energean currently produces its oil from the Prinos and South Kavala fields in Greece.
However, its flagship project in the Karish and Tanin gas project offshore Israel, which Energean said is on track to deliver first gas in the first quarter of 2021. It has in place gas sales agreements worth USD13 billion from the project.
The focus for Energean in 2019 will be completing three development wells at the Karish Main development, as well as drilling at the Epsilon asset in Greece and seismic operations across Israel, Montenegro, and Greece.
In a separate statement Thursday, Energean said it has extended its time charter agreements for the Energean Wave and Valiant Energy offshore supply vessels in the Gulf of Kavala, Greece, until July 2021.
The terms are the same as those under the previous agreement, and Energean will pay USD17.6 million to owner Seven Marine for the period between November 2018 and July 2021.
Related Shares:
Energean Oil & Gas