17th Nov 2020 11:06
(Alliance News) - Energean PLC on Tuesday announced the Edison Exploration & Production acquisition from power & gas company Edison Rsp Spa is due to be completed in December.
Energean is an oil and gas exploration and production company with operations in Israel, Greece and Egypt.
Edison E&P manages all of Edison's activities, mining titles and corporate shareholdings in the hydrocarbons business in Italy and abroad. Edison E&P owns a portfolio of approximately 90 licences in 9 countries in the Mediterranean and Northern Europe.
The acquisition was first announced in July, 2019, for USD750 million plus a USD100 million of contingent consideration.
The acquisition will create "one of the largest independent E&P companies on the London and the Tel Aviv Stock Exchanges", according to Energean's website.
Following the completion of the acquisition as well as the completion of the Karish field development in Israel, the company aims for a production of 130,000 barrels of oil equivalent per day.
Chief Executive Mathios Rigas said: "We look forward to completing our acquisition of Edison E&P in December, 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."
Energean said its Karish development is 85% complete at October 26, with first gas expected in the fourth quarter of 2021. Liquids production at Karish is now expected to average 28,000 barrels of oil per day.
"The gas sales pipeline and main deepwater installations of the subsea production systems were successfully installed in June. In October, Energean completed installation of the 14 mooring lines to anchors that will connect the floating production storage and offloading unit to the seabed," Energean said.
Energean shares were down 2.1% at 689.56 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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