Greek independent Energean Oil & Gas has deferred a drilling programme at its domestic development in the Prinos basin after experiencing delays at drilling on a nearby tract, writes Eoin O'Cinneide.

The London-listed company has pushed the drilling of two production wells in the Prinos area from the second half of this year into 2020.

As a result, the group's full-year production forecast has been pared back to between 4300 and 4800 barrels per day from a previous target of 5000 to 5500 bpd.

“Activity over the remainder of 2019 will focus on ensuring a more robust and sustainable base production profile through earlier conversion of producer wells into water injectors, which will provide additional pressure support to existing key producing wells,” Energean said.

Energean does, however, still have its sights set on production of more than 10,000 bpd by 2021.

The company has also chopped between $30 million and $40 million from this year’s capital expenditure, which is now set to come in at between $740 million and $770 million. For the first quarter, capex came in at $170 million.

Half of the capex cut relates to cost savings in the remainder of this year’s drilling programme, with the other half related to the Prinos deferral.

Exploration spending guidance remains at between $40 million and $60 million.

Energean remains on track to deliver first gas from its Karish and Tanin development off Israel in the first quarter of 2021.

Last month the company completed first keel laying on the Energean Power floating production, storage and offloading unit at China’s Cosco Shipping Heavy Industry.

Weekly

Energean drilling deferred