Energean Oil & Gas topped the mid-cap risers in London this morning as the company secured a $900m deal to supply gas to an Israeli provider.
The London and Tel Aviv listed company rose as high as six per cent to 665.9p in the morning as it said IPM Beer Tuvia had agreed to buy an estimated 5.5bn cubic metres of gas over the next two decades.
Gas will begin flowing in 2024 from four Israeli wells in the Karish and Tanin fields where drilling is set to start this year, the company said.
“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,” Energean chief executive Mathios Rigas said.
“Our future sales contracts will target both the growing domestic and regional export markets, delivering attractive incremental economics for all of our stakeholders.”
Energean was given Israeli approval for its plans for the Karish-Tanin gas project in August 2017, and expects the first gas to be taken from the fields in 2021.
The company has five offshore exploration licences from Israel and others in western Greece and Montenegro.
The deal will help provide “competition and energy security to the Israeli domestic market,” Rigas said.