Confirmation that FTSE 350 oil and gas firm Energean (ENOG) intends to pay a maiden dividend next year weren’t enough to support the shares which fell 3.3% to 828.5p on a widened loss for 2020.

For the year ended 31 December, pre-tax losses widened from $113.6 million a year earlier to $404.3 million as revenue fell 63% to $28 million.

Working interest production averaged 3,600 barrels of oil equivalent per day (boepd) in 2020, up from 3,300 boepd, with the Prinos oil field, offshore Greece, accounting for approximately 50% of total output.

The focus in terms of the long-term growth of the group is on the big gas discoveries it has made offshore Israel and the company said it continues to work towards first gas from its Karish find in 1Q 2022, with an offtake agreement for associated liquids from the field expected in the second half of the year.

BIG INCREASE IN RESERVES

During 2020 the company increased its proved and probable reserves by 187% to 982 million barrels of oil equivalent, of which nearly 80% is natural gas.

Looking ahead 2021, the company is targeting working interest production in a range of 36,000 to 41,000 boepd. This will help underpin plans for the company to join the dividend list in 2022.

Development and production capital expenditure is expected to fall to $470-to-$550 million, from $510-to-$590 million previously.

'Our focus in Israel is delivery of first gas from Karish and commencing our one billion boe (barrel of oil equivalent) growth programme,' the company said.

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Issue Date: 19 Apr 2021