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Shares in FTSE 250 Energean Oil and Gas (LON:ENOG) rose by 5.04% to 659.99p (as of 13:30 GMT) after the firm signed a gas sales agreement worth $0.9 billion. The deal is contingent on drilling results from its current programme and will run for 19 years.
CEO Mathios Rigas commented: “This additional Gas Sales Agreement aligns with Energean’s strategy to secure offtake for the remaining spare capacity in our 8 BCM/yr FPSO and to commercialise the resource being targeted by our upcoming drilling programme, providing competition and energy security to the Israeli domestic market. The signing of this contract ahead of results from our 2019 drilling programme demonstrates not only the attractiveness of the Karish and Tanin fields but the strong incremental demand that we have identified for our gas and we will continue to target additional sales. Our future sales contracts will target both the growing domestic and regional export markets, delivering attractive incremental economics for all of our stakeholders.“