Energean Oil & Gas Share News (ENOG)

(Sharecast News) - British-Greek oil and gas company Energean on Wednesday said its $750m acquisition of Edison E&P would now exclude Algerian from the deal.
The move was mooted last month after an intervention by Algerian authorities and confirmed in a trading update by Energean.

"Energean will provide an update on the settlement to the total transaction consideration once this has been agreed," the company said.

It added that the exclusion did not expect the exclusion to negatively affect its ability to close the transaction on the remainder of the assets.

"Energean is working actively to close its Acquisition of Edison E&P as soon as possible, with approval from Italy anticipated shortly. Formal approvals from Egypt are expected soon after EGM approval," the company said in a statement.

It added that full-year revenue was expected to be approximately $76m, compared with $90.3m a year earlier.

Working interest reserves and resources were expected to rise 38% to 554m barrels of oil equivalent (boe) year on year, driven primarily by the 190m boe Karish north discovery in Israel.

Capital expenditure rose to $721m from $492m and said Karish was on track to deliver first gas in the first half of 2021.

Energean forecast production in a range of 42,500 -50,000 boe per day and capital expenditure of $995m of which $620m, would be spent in Israel.

Karish and Tanin, also in Israel, were on track to deliver first gas in the first half of 2021 and the company had now secured 5bn cubic metres (bcm) of firmly contracted gas sales to Israeli domestic buyers, 1.3 bcm/yr of contingent gas sales and 2 bcm/yr of potential sales to be discussed under a Letter of Intent with the Greek government., Energean said.