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Energean earmarks up to $860M for capital expenditures in Israel, Greece in 2019

Energean Oil & Gas PLC said Jan. 16 it will spend $825 million to $860 million for its capital expenditures in 2019 with the majority of the funding earmarked for projects in Israel.

The Eastern Mediterranean-focused oil and gas producer said it will allocate $670 million to $690 million to exploration and development projects in Israel while it will spend $145 million to $160 million on exploration and development projects in Greece.

Energean will also fund $5 million for the Montenegro project, which will undergo tests in January. The company will decide on the licenses in the first half of 2020 after examining the results.

Another $5 million will go to a new business that will assess opportunities in the Mediterranean.

For Israel projects, Energean said its Karish and Tanin development project remains on track to deliver first gas in Israel during the first quarter of 2021 and its Stena drillship is slated to mobilize in February 2019 for the spudding of the Karish North in March.

Another three Karish development wells are slated to be completed in 2019.

The company is targeting production of 2.3 Tcf of gross prospective gas resources in 2019, with 1.3 Tcf of gas and 16 million barrels of liquids expected from Karish North.

Energean also signed gas purchase sales agreements that total 4.6 billion cubic meters per year from its Karish and Tanin floating production storage and offloading, which will have a total capacity of 8 billion cubic meters per year. Energean expects revenues of $0.9 billion from the agreements, which total $12.9 billion during the life of the offshore fields.

For Energean's Greece operations, first oil is slated for the Epsilon extended reach well in the first quarter while the Epsilon vertical well platform development is expected to start production in the end of the year.

The company will also drill two additional wells in the offshore Prinos field and targets to complete the acquisition of seismic data, with its partner Repsol SA, in the onshore Ioannina and Aitoloakarnania blocks this year.