- Energean Oil and Gas swung to a first-half profit Wednesday amid rising oil prices, but the company cut its full-year production guidance as the replacement of Prinos infill drilling would delay output.

Full Year production guidance was narrowed to range of 4,000 to 4,250 barres a day (bopd), from 4,000 to 4,500 bopd previously, as the company had replaced previously planned Prinos infill drilling with the Epsilon Extended Reach well, which impacts timing of production delivery.

For the six months to 30 June, the company reported a pre-tax profit $82.1m, comared with a loss of $4.4m the previous year, while revenue fell 1.9% to $26.3m.

The fall in revenue was attributed to a drop in the cargo sales: The company sold just one cargo (417,566 barrels) in first half of the year, compared with two cargoes (569,134 barrels in total) in the same period last year.

In Israel, the company said it was on track with its Karish Main development with no change to the expectation that first steel will be cut before year end. Development drilling is expected to start in the first half of 2019.

'During the period we made substantial progress in de-risking our flagship Karish and Tanin development project. We signed a lump-sum, turnkey EPCIC contract with TechnipFMC, simplifying project management and reducing our financial risk exposure, and secured $12 billion of future revenue by signing 12 firm Gas Sales Agreements to deliver a total of 4.2 bcm/yr,' said Mathios Rigas, Chief Executive, Energean Oil & Gas.

'Over the next 18 months we aim to prove up sufficient resource to fill the 3.8 bcm/yr of spare capacity in our Karish FPSO, delivering significant incremental value to our stakeholders.'

'Our independent reserves auditor has identified 7.5 Tcf of Israeli prospective resource with a high geological probability of success, which gives us confidence that we can meet this target whilst adhering to our exploration strategy to target resource that can be quickly and economically monetised.'

'We look forward to the results from the Karish North exploration well in 2Q 2019.'

At 8:36am: [LON:ENOG] Energean Oil Gas Plc share price was -10p at 535p

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