Energian acquires the Crogen holdings in shark and crocodile – gas and oil

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Reports that it has reached an agreement with Kerogen to acquire all its holdings (30%) in Energian Israel, thus becoming the sole holder of the shark and crocodile gas reservoirs, after increasing its share in Energian Israel from 70% to 100%. %. In return, Energian will pay Crogen between $ 380 million and $ 405 million.

According to the report, the company will pay an advance of $ 175 million, another $ 155 to $ 180 million will be paid later and are expected to be funded by future cash flow and optimization of the group’s capital structure, and revenue from the Shark project, and $ 50 million will be provided through convertible Due date, December 29, 2023, with a strike price of £ 9.50 and a zero coupon rate. Energian believes that “the purchase will be very attractive”

Earlier this month we reported on the deal expected to take place.

The deal will also require approval from Energy shareholders and regulatory approvals. In any case, Energian expects that the potential transaction will be financed without the need for an additional share issue.

Energian Israel holds 80% of the rights in 4 blocks in Area D near the shores of Israel. In addition, Energian Israel holds 100% of the rights in the Shark and Crocodile reservoirs, which according to a recent resource report, published on November 10 and produced by the external evaluator D&M, in the reservoirs are about 98.2 Bcm of natural gas, And about 99.6 million barrels of liquid (2P), which is estimated at about 729 million barrels of oil equivalent.

According to the resource report, the volume of natural gas attributed to the reservoirs is consistent with previous estimates for 2P and 2C resources, at a level of 98.2 Bcm. A quantity of approximately 241 million barrels of equivalent 2C oil (contingent resources), attributed to the North Shark has been updated to the category 2P (Proven Resources), following the approval of the development plan by the Government of Israel.The amount of liquid (17.5 million barrels) of type 2P represents an increase of 21.4% compared to previous estimates.

The report also states that according to the Gross best estimate, in Shark, Crocodile and Block 12 there is a prospective amount of Bcm 62 resources of natural gas, and another 33.4 million barrels of liquids (MMbbls). These reservoirs will be included. As part of Energian’s next drilling plan expected in early 2022.

The company stated that the average success potential in these reservoirs is estimated in the geological probability range between 15% and 79%, with the next prospects to be drilled being in the range of 70% to 79% (for the full article).

Crogen entered into an investment in Energian Israel in February 2017 when it invested $ 50 million and will come out with a substantial profit.