Energean to buy remaining 30% stake in Israeli offshore field

Energean has agreed to buy the remaining 30% stake in Israeli offshore field Energean Israel Limited that it does not already own from Kerogen Capital for between $380m and $405m.

The FTSE 250 exploration and production company said on Wednesday that it will make an up-front payment of $175m and deferred cash payments of between $155m and $180m.

The acquisition adds 2P reserves of 29.5 billion cubic metres of gas and 30 million barrels of liquids, representing around 219 million barrels of oil equivalent in total.

Chief executive officer Mathios Rigas said: "The acquisition represents a unique opportunity, given our existing, unrivalled understanding of the assets and the fact that the position significantly enhances Energean's cash flow, whilst generating no incremental G&A (general and administrative) costs.

"It allows us to consolidate our interests in Israel, enabling us to further generate long-term value by capitalising on the production growth and upside potential of our acreage offshore Israel; and is supportive of our ambition to be the leading independent, gas-producer in the Mediterranean."