Energean revenues slip but production guidance backed

Oil and gas producer Energean recorded a slight drop in year-to-date revenues on Wednesday but still maintained its full-year production guidance.

Energean said revenues for the nine months ended 30 September had dipped 5.42% to $52.4m but the group still reiterated its full-year production guidance of 3,400-3,600 barrels of oil per day.

The AIM-listed group said a $25m drop in development capex had been partially erased by an $8-23m increase in exploration capex due to the inclusion of the Karish North sidetrack and preparatory activities for its Zeus exploration well - expected to be drilled in 2020.

On the operational front, Energean said it was on track to deliver first gas from its Karish development in Israel in early 2021 after completing the drilling of three development wells on the site.

The company also said it was on track to complete its acquisition of Edison E&P at the end of the year, adding that it was progressing the necessary regulatory approvals. To date, it has received approvals in France, Norway and Greece.

Energean said a $600m committed bridge loan facility it had previously secured to fund the acquisition was expected to be replaced with a reserve-based lending facility before the deal's completion.

The group had a net debt balance of $348.6m at the end of September, while gross cash was $393.1m but this was offset by $741.7m of borrowings.

At 1035 GMT, the shares were down 0.1% at 880p.