Energean prepares to spud Zeus exploration well

Energean announced this week that it has set a timeline for drilling the Zeus exploration well offshore Israel. In an operational update, the company said it expects to spud the well in March, targeting 0.6 trillion cu-ft of gas initially in place (GIIP).

Energean will utilize the Stena DrillMAX drillship from Stena Drilling for Zeus, the same drillship it used to complete work on three Karish Main development wells last year. Following the campaign, it said it would release the drillship to another operator, which will then execute a three- or four-well campaign in the region. Following that campaign, Energean will take the drillship back for the remaining options under its contract with Stena Drilling.

Zeus is located in Block 12, between Energean’s Karish and Tanin leases, and a discovery would be commercialized through its FPSO Energean Power, which is also developing the Karish North discovery. The Zeus well is expected to cost $35 million to develop. Energean said exploration activities during the second half of 2020 will focus on the analysis of the well results.

Block 12 was one of five exploration licenses within the Israeli Exclusive Economic Zone awarded to Energean in December 2017. The remaining licenses covered Blocks 21, 22, 23, and 31.

In addition, Energean said it is preparing to drill two more exploration wells in 2020, contingent on the results from Zeus. Prospects under evaluation include Athena and Hera, both located in Block 12, and Poseidon in Block 21. The company will target 1 trillion cu-ft of GIIP combined at Athena and Hera, and an additional 1 trillion cu-ft of GIIP at Poseidon.