16th Jan 2019 09:22
LONDON (Alliance News) - Energean Oil & Gas PLC said Wednesday 2018 was a "very successful" year for the company with revenue rising sharply and costs declining.
In 2018, the Mediterranean focused oil and gas developer's revenue increased 56% to USD90.3 million from USD57.8 million the year before.
Energean's production increased 45% to 4,053 barrels of oil per day from 2,803. The company's cost of production decreased 29% in 2018 to USD17.6 per barrel from USD24.7. Energean expects the cost of production to reduce to between USD14 and USD17 per barrel in 2019.
"2018 was a very successful year for Energean. We increased revenues by 56% while reducing cost of production by 29%, made significant progress on our development projects and converted significant volumes of resources into reserves," said Chief Executive Officer Mathios Rigas.
Energean's Israel projects - Karish and Tanin - remain on track for first gas in the first quarter of 2021.
Rigas continued: "We have secured USD12.9 billion of future revenues through 4.6 billion cubic metres per year of contracted gas sales, firmly underpinning the project's economics. I look forward to continuing this positive momentum in 2019, which will include the drilling of at least six new wells across our acreage in Israel and Greece, targeting significant increases in reserves, resources and production."
Energean has targeted up to 2.3 trillion cubic feet of gas for its 2019 drilling programme.
Rigas added: "In Israel we continue to see increasing demand for our gas and are aiming to fill the 3.4 billion cubic metres per year of spare capacity in our floating production storage & offloading unit in the medium term. We continue to target value-enhancing opportunities in the Mediterranean area and aim to match the growth achieved over the last decade."
Energean is expected to release its preliminary results on March 21. It expects administrative expenses for the year to total USD15 million.
Shares in Energean Oil & Gas were up 1.1% Wednesday morning at 630.20 pence each.
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