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Energean expanding its activities in Morocco

This move is well-aligned with Energean’s strategy to become the pre-eminent independent producer in the Mediterranean, with a focus on high quality gas assets, the company said in an announcement

Energean announced that it is expanding its activities in Morocco by farming into Chariot Limited’s acreage offshore Morocco, which includes the 18 Bcm Anchois gas development and significant exploration prospectivity.

The Partnering Rationale is to:

  • Provide funding for both Chariot and the project through upfront consideration, deferred
    consideration and potentially a full carry to first gas, with Chariot retaining a material stake in
    the project
  • Secure an experienced operator for the development of Anchois – Energean is a FTSE 250
    company with a proven track record in successfully developing large offshore gas projects
  • Accelerate growth from the portfolio, with the potential to significantly upscale the development
    and target further exploration prospectivity in the Lixus and Rissana licences

This move is well-aligned with Energean’s strategy to become the pre-eminent independent producer in the Mediterranean, with a focus on high quality gas assets, the company said in an announcement.

Project Development:

  • Leveraging their combined expertise to co-develop Anchois, the parties are aligned on the next steps for the project development, including:
  • Drill a further well, in the east of the Anchois field and conduct a gas flow test in 2024,
    with rig contract negotiations advanced. Multi-objective well:
  • Evaluate undrilled low-risk deeper sands, to potentially materially increase the
    resource base for a development above 1 Tcf
  • Optimise development scheme through a production flow test
  • Provide a future producer well
  • Expansion of the existing offshore development plan, to accommodate potentially
    significantly higher production
  • Finalise ongoing gas sales negotiations with focus on meeting Moroccan energy needs
  • Progress exploration together across Lixus and Rissana, including a 2024 seismic campaign

Dr Leila Benali, Minister of Energy Transition and Sustainable Development of Morocco, commented: “This agreement is pivotal for the wider acreage offshore Morocco, on its Atlantic coast, a key energy asset for the Kingdom. We welcome Energean on these licences as the important investments will contribute greatly to the monetisation of the country’s resources and to our ambitious energy strategy.”

Mrs Amina Benkhadra, General Director Office National des Hydrocarbures et des Mines, (“ONHYM”) commented: “I would like to congratulate both parties on signing this agreement. The discovery and extensive work to date has set an excellent foundation on which the project can be developed and this partnership will now be instrumental in financing and taking it through the next phase. We look forward to working alongside Energean and Chariot in bringing the project to first gas.”

Mathios Rigas, Chief Executive Officer of Energean, commented: “This is an exciting step in the next stage of our development, one that can only enhance our position as the pre-eminent independent natural gas producer listed in London. These assets are particularly attractive as we understand the core geological, commercial and political drivers of the region, we have a track record in developing material gas resources prioritised for the domestic market and they are a complementary fit with our broader portfolio, not least the potential for surplus supply to other markets. We look forward to working with our partners Chariot and ONHYM, and developing an outstanding resource for the benefit of all parties, including Morocco and its people.”