Energean Israel Signs US$1.275bn Facility Agreement with Four International Banks to Finance the Karish Development Project

The Senior Credit Facility, led by Morgan Stanley, Natixis, Bank Hapoalim and Societe Generale is a key milestone in financing the development of Karish, part of the Company’s flagship Karish and Tanin project.

LONDON--()--NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT WOULD BE UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT.

“The participation of four international banks in the Facility Agreement is a strong vote of confidence in Energean’s flagship project. Long-term cash flow from Karish and Tanin has been secured through our previously signed gas supply agreements for approximately 4.2 BCM per year with 12 established counterparties.”

Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce that Energean Israel has signed a secured Senior Credit Facility (the “Facility Agreement”) of up to US$1.275 billion with Morgan Stanley, Natixis, Bank Hapoalim and Societe Generale as Mandated Lead Arrangers (“MLAs”).

The Facility Agreement will be the primary source of funding for the development of the Karish offshore gas field over the next three years, with first gas production expected in early 2021.

It also provides further momentum for the Company to make a Final Investment Decision (“FID”) on Karish and Tanin.

Energean Oil & Gas CEO, Mathios Rigas, commented: “We are rapidly advancing the Karish and Tanin development by continually delivering on substantial project milestones.

“The participation of four international banks in the Facility Agreement is a strong vote of confidence in Energean’s flagship project. Long-term cash flow from Karish and Tanin has been secured through our previously signed gas supply agreements for approximately 4.2 BCM per year with 12 established counterparties.

“Furthermore, Energean has signed a US$1.36 billion contract with TechnipFMC for the construction of an FPSO with a production capacity of 8 BCM per year, potentially enabling us to take advantage of future production potential from our existing licences or adjacent fields to deliver gas to a rapidly growing regional market.

“The Company is in the process of raising the equity required to develop Karish and Tanin through a premium listing on the London Stock Exchange’s Main Market. At the same time, we are pressing ahead with the expansion programme of our existing production and development base in the Eastern Mediterranean, to deliver our next phase of growth.”

ENDS

www.energean.com

Neither this announcement nor the information contained in it is for publication, distribution or release, directly or indirectly, in or into the United States of America, Australia, Canada, Japan, South Africa or any other jurisdiction where to do so might constitute a violation of the relevant laws or regulations of such jurisdiction. The distribution of this announcement and any other information in connection with the proposed IPO may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States of America, Australia, Canada, Japan, South Africa, or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered, sold, resold, pledged, delivered or transferred, directly or indirectly, into or within the United States unless registered under the US Securities Act of 1933, as amended (the "Securities Act") or offered in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The offer and sale of securities referred to herein has not been and will not be registered under the Securities Act, the laws of any state in the United States of America or the applicable securities laws of Australia, Canada, Japan or South Africa. Subject to certain exceptions, the securities referred to herein may not be offered or sold in the United States of America, Australia, Canada, Japan, South Africa or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Japan or South Africa. The Company does not intend to register any part of the IPO in the United States of America and there will be no public offer of the securities referred to herein in the United States of America, Australia, Canada, Japan, South Africa or elsewhere. Copies of this announcement are not being, and may not be, distributed, forwarded or otherwise sent, directly or indirectly, in or into the United States of America.

In member states of the European Economic Area (“EEA”) (each, a “Relevant Member State”), this announcement and any offer if made subsequently is directed only at persons who are “qualified investors” within the meaning of Article 2(1)(e) of European Union Directive 2003/71/EC, as amended (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and any relevant implementing measure in each Relevant Member State (the “Prospectus Directive”), and related implementation measures in Member States (“Qualified Investors”).

Contacts

Media Enquiries:
Energean Oil & Gas
Sotiris Chiotakis
schiotakis@energean.com
+30-6932663877
or
Instinctif Partners
David Simonson / Laura Syrett / George Yeomans
+44-20-7457-2020

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