- Energean Oil and Gas said it had made a 'significant' gas discovery at its Karish North exploration well offshore Israel.

Preliminary analysis included initial gas in place estimates of between 1 Tcf (28 Bcm) and 1.5 Tcf (42 Bcm), at Karish North with 'high quality' reservoir in the B and C sands, the company said.

A gross hydrocarbon column of up to 249 meters was encountered and a 27 meter core was recovered to surface following drilling, which was 7 days ahead of schedule.

The Karish North discovery would be commercialised via a tie-back to the Energean Power FPSO, which was located 5.4km from the Karish North well, the company said.

The FPSO was being built with total processing and export capacity of 8 Bcm a year (775 mmcf/d), which would enable Karish North, and future discoveries, to be monetised.

With drilling of the initial phase of the Karish North well now completed, Energean said it would now deepen the well to evaluate hydrocarbon potential at the D4 horizon. Once operations were completed on Karish North, the three Karish main development wells would be drilled.

'Following this four well programme, Energean has six drilling options remaining on its contract with Stena Drilling,' the company added.

'We are building the Energean Power FPSO with spare capacity, which will enable us to quickly, safely and economically develop both Karish North and future discoveries,' said Mathios Rigas, CEO of Energean.

'We have already signed a contingent contract to sell 5.5 bcm (0.2 Tcf) of this new resource, and our strategy is now to secure the offtake for remaining volumes. We continue to see strong demand for our gas, which we believe will be supported by today's announcement.' Story provided by