Energean plc (LSE: ENOG, TASE: אנאג) announced a new discovery, Israel’s fourth offshore field, on Monday morning on the London and Tel Aviv Stock Exchanges.

This is the commercially produced Zeus gas field in Block 12, which is estimated to have 13.3 billion cubic meters of recoverable natural gas, up from initial estimates of 10-12 billion cubic meters. Energean is now analyzing the data collected from the well. Commenting on the developments, Energean Group CEO Matios Rigas said:

“Days after the commencement of production at the Karish field, I am particularly pleased that our drilling program, which currently has 5 out of 5 successful wells, continues to benefit Energean by improving supply security and competition in the region’s energy market. We are currently evaluating a number of potential commercial development options for the Olympus region, focusing on both our existing and unique Mediterranean infrastructure and potential new ones. We are expected to launch a new binding development program in the first half of 2023.”

Independent appraiser DeGolyer & MacNaughton (D&M) has confirmed that Energean’s potential Athena reserves are 11.75 bcm. m, upping Energean’s previous estimate of 8 billion cubic meters.

The discovery of the Zeus field and the upgrade of the Athena field give Energean greater confidence in the quantity and marketability of natural gas in the Olympus region, and the company is now advancing its development plan. In early 2023, Energean is expected to provide final data on the total volumes of the Olympus Area based on a special report (CPR – Competent Persons Report) prepared by D&M.

It is noted that the Stena IceMax drilling vessel has now moved to Block 23 in the Israeli Sea to continue drilling on the Hercules structure targeting natural gas from the Miocene.