UK-listed Energean said Thursday it is making good progress towards a near-term production target of 200,000 barrels of oil equivalent per day and provided an ambitious outlook for this year, despite the ongoing war in Israel.
The company is making good progress towards its near-term production target and towards “$1.75 billion adjusted EBITDAX (earnings before interest, taxes, depreciation, amortisation and exploration expense), it said in a trading statement and operational update.
However, Energean did not mention a time frame for achieving its near-term production target.
The UK-listed company’s core production asset includes the Karish gas field offshore Israel.
“Despite the challenging regional geopolitical developments, we stabilised the production of the Energean Power FPSO, which operated at 99% uptime during Q4 2023, and we produced at a maximum rate of 150,000 boepd from our 1 billion-plus boe pan-Mediterranean portfolio, with full-year production in line with our latest guidance,” Energean chief executive Mathios Rigas said in the statement.
The company said its working interest production this year “is expected to be between 155,000 to 175,000 boepd (weighted towards the second half of 2024)”, which is a significant step up towards Energean’s near-term targets.
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“This range is primarily driven by Energean’s gas demand outlook for 2024 in Israel, which has been influenced by the coal phase-out delays and warmer than average winter temperatures so far,” it said.
Energean also said its adjusted EBITDAX grew 119% in 2023 to $925 million, compared to 2022.
The company posted 2023 revenues of $1.42 billion, a 93% increase versus the previous year.
The Energean chief said “2024 shows significant potential,” and the company is well advanced with its core strategic projects across Israel, Egypt, Italy and Greece, and has extended its footprint with a new gas development in Morocco.
“As we continue to optimise our portfolio, we look forward to enhancing our position as the leading independent gas-focused exploration, development and production company in the region,” he said.
Karish North’s first gas is expected in the first quarter of this year, while the project’s second oil train will be installed as soon as the security situation allows, Energean said.