RE: ADVFN Chatter23 May 2024 11:58
Harrycarter,
When it comes to the question of 'how long' most of it depends on the farm in partner who then becomes operator.
One of the primary reasons Chariot chose to partner with Energean is due to the speed at which Energean moved their last asset (the Karish gas field) into production.
When it comes to these big gas deposits, it's the proving of resources that takes the time, not laying production infrastructure. Energean seems to move quickly into production once they have proven the resource.
For example; By 2022 Energean had proven 1.4Tcf of gas in the Karish gas field offshore Israel and in October 2022 moved to production. Through 2023, they went from zero to 4 production wells in just over 1 year which is impressive for any O&G company. By the end of 2023, gas production capacity reached an equivalent of 6.5bcm per year. Total production of gas and fluids was 87k boepd.
Production from Karish is continually being increased through 2024 as the FPSO is optimised. Already, within 2 years, the Karish field has become a significant supplier to the Israeli gas market. Energean has stated that it wants to do exactly the same thing in Anchois and become a major player in Morocco.
If Chariot had chosen to partner with a Super-Major, maybe it would take up to 10 years for Chariot to see any revenue from the Anchois field as Super-Majors tend to have large portfolios of assets that they slowly work through to production, and maybe that's why the punter over on ADVFN was talking in such generalised terms of a decade, because he/she thinks Energean operate like a Super-Major, when they've proven to be a much more nimble mid-sized player (with cash) and a history of moving quickly to production.