Continental Focus, International Reach

Energean Acquiring Edison E&P Assets

Sunday, July 7, 2019

Energean Oil & Gas entered into a conditional sale and purchase agreement to acquire Edison Exploration & Production S.p.A. The cost of the acquisition is $750 million, which will be adjusted for working capital, with additional contingent consideration of $100 million payable following first gas from the Cassiopea development (expected 2022), offshore Italy.

Energean gains Edison E&P’s portfolio of assets in Egypt, Italy, Algeria, the UK North Sea and Croatia. The deal gives the firm working interest of 2P reserves of 292 mmboe and 2018 net working interest production of 69,000 boepd.

The enlarged company is expected to produce more than 140,000 boepd in 2021, once Energean’s Karish and Tannin development projects offshore Israel come onstream. Once the two fields reach peak production, the firm could see as much as 200,000 boepd.

As stated previously, the acquisition price of $750 million is to be adjusted for working capital, with additional contingent consideration of $100 million payable following first gas at the Cassiopea development. Edison will also receive an 8% royalty on profit production resulting from future discoveries made by upcoming exploration wells in the North Thekah Offshore and North East Hap’y Blocks, offshore Egypt.

Energean will initially fund the deal through a $600 million committed bridge loan facility and up to $265 million of equity financing through a recently announced placing.

Mathios Rigas, Chief Executive of Energean, commented: “The acquisition of Edison E&P establishes Energean as the leading independent, gas focused E&P company in the Mediterranean with a mainly operated, low cost, gas weighted portfolio, with the capability, focus and team to prosper in our rapidly changing industry. It will diversify Energean into a multi-country, multi-asset, full-cycle E&P company with scale, material cash flows, significant EMEA 122038774 4 growth and portfolio optionality. Edison E&P brings with it an exceptional team and I look forward to working with them as we build on the multiple opportunities ahead of us.”

“Together, our priority is to maximize the economic value of the combined portfolio, whilst retaining as a key priority delivery of Karish and Tanin First Gas into Israel in Q1 2021. Since 2007, Energean has delivered significant growth and value for our investors and this acquisition is the next important step on this growth and value journey,” he added.