Thursday 30 January 2020

Energean Oil and Gas plc is pleased to provide an update on recent operations and the Group's trading performance in 2019 together with guidance for 2020. This information is unaudited and subject to further review.

Mathios Rigas, Chief Executive,Energean commented:

"Karish and Tanin is on track to deliver first gas in 1H 2021 and we have now secured 5.0 bcm/yr of firmly contracted gas sales to Israeli domestic buyers, 1.3 bcm/yr of continngent gas sales and 2.0 bcm/yr of potential sales to be discussed under a Letter of Intent with Greece's DEPA. With the above we are fast approaching our goal to fill the capacity of the Energean Power. We are already looking at growth opportunities es on the resource side from our nine blocks in Israel and on potential additional infrastructure capacity that will allow us to expand gas sales in the region. With the expected closing of the acquisition of Edison E&P and subsequent sale of the North Sea assets to Neptune, we will further enhance our position in our core markets, substantially increase our reserves and production and realise immediate operating cash flow. Post completion, the combined portfolio will establish a material long-term cash flow profile that supports our ambition to pay a sustainable dividend.

I look forward to continuing this positive momentum in 2020, with a key focus on delivering Karish; closing and integrating Edison E&P; and continuing the sustainable growth of Energean, maximising value for all of our stakeholders."

"2019 has undoubtedly been the year that climate change has dominated the energy discussion; Sustainability continues to be at the core of Energean's gas-focused strategy and in 2019, we became one of the first E&P Companies in the world to commit to net zero carbon emissions by 2050 and we are targeting over 70% reduction in our carbon intensity over the next three years, with a firm intention to continue our reduction efforts un#l we achieve our net zero target. In 2019,we also continued to deliver upon our exemplary HSE track record with one million hours free of Lost Time Incidents in Energean sites plus four million man hours in the FPSO construction yard in China."

Highlights

- Energean expects that year end 2019 Working Interest reserves and resources will be 554 million boe,a 38% increase on 2018 year end, driven primarily by the 190 mmboe Karish North Discovery.

· The Karish development is on track to deliver firstgas in 1H 2021.

· 5.0 Bcm/yr of firm Gas Sales and Purchase Agreements ("GSPAs) signed in Israel, with a further 1.3 Bcm/yr of contingent contracts and 2.0 Bcm/yr of potenal sales to be discussed under a Lever of Intent, demonstrating significant progress on our ambition to fill the 8 Bcm/yr capacity of our FPSO.

· 2019 average Working Interest production of 3.3 kbopd. Cost of Production was approximately $21 /bbl.

· 2019 full year revenue is expected to be approximately $76 million. Capital expenditure was $721 million.

· At 31 December 2019, Energean had net debt of $557 million, including the non-recourse $638 million of net project finance debt within Energean Israel. Cash and un drawn facilities were $834 million

.Edison E&P (subject to closing)

· Energean is working to close its acquisition of Edison E&P as soon as possible in 2020, with approval from Italy anticipated shortly.Formal approvals from Egyptare expected soon after shareholder approval at the EGM.

· The acquisition is now expected to exclude the Algerian Asset. An update will be provided on the appropriate settlement on the total transaction consideration once this has been agreed.

· Exclusive of the Algeria, the UK North Sea and Norway, Edison E&P delivered Operating Cash Flow of $212 million during 2019. Capital expenditure was $61 million

· The updated Italian EIA approval on Cassiopea has been received by Edison E&P. The development is progressing gas planned with First Gas expected in 2022.

· Exclusive of Algeria and the UK North Seaa ssets, 2019 average Working Interest production was 56 kboe/d (64 kboe/d inclusive of these assets).

Outlook:

· Expected closing of the Edison E&P acquisition and subsequent sale of the North Sea assets to Neptune as soon as possible in 2020.

· Following successful appraisal of the 190 mmboe Karish North discovery, Energean expects to issue an updated CPR and Field Development Plan. Energean Final Investment Decision on the Karish North development is expected during 2020.

· Drilling of the Zeus exploration well plus two contingent exploration wells offshore Israel.

· The Energean Power FPSO hull is expected to sail away from China in March 2020. FPSO sail away from Singapore is still anticipated around Yea rEnd 2020.

· Strategic review of the Prinos Area assets initiated.

· 2020 pro forma group production is expected to be between 42.5 - 50.0 kboe/d

2020 pro forma consolidated group capital expenditure of $995 million of which $620 million is to be spent in Israel.

· Decisions on FID at Katakolo (Greece) and Drill or Drop on both Ioannina(Greece) and Montenegro.

More.