Energian undertakes to start producing gas from a shark reservoir and distribute dividends to investors
Energian undertakes to start producing gas from a shark reservoir and distribute dividends to investors
The company anticipates that gas production will begin in the 3rd quarter of 2022, so it declares that already in the 4th quarter of 2022 it will distribute dividends. Dividends of at least $ 1 billion are expected to be distributed by 2025, with at least $ 50 million being distributed each quarter depending on the rate of gas production and the company’s revenues.
Even if Energian meets these times, it is a delay of about 18 months compared to previous forecasts, which led to changes in plans. For example, Dalia Energies has decided to extend the contract with Am Tamar Reservoir until 2035. Other investors may not wait either, for example Idan Ofer, the companies in Zen, Ai. C.L. and OP. C Energy, which constitutes about one third (36%) of Energian’s contracts in Israel. Bezen has already announced that any delay beyond 1.5.2022 will cloud its annual revenues
Already at the beginning of March 2022, the hedge fund Third Point stopped the balance of its holding in the Energian share, which started at 45% and dropped over time to 9.54%, which were sold for NIS 800 million. Although the Energian share has soared in the last 6 months At 54%, but in the last 3 years it has not yielded a return.
In the same month, a shark reservoir was connected to the national gas transportation system, the floating rig entered shipping as part of preparations for its entry into Israeli water and a memorandum of understanding was signed with two companies (Vitol SA and IEC, with the last contract signed a year in advance with an extension option). At the beginning of the year, a memorandum of understanding was also signed with EGAS (the Egyptian gas company) for 10 years and drilling of an experiment began at Beer Athena in Block 12, a drilling that is expected to yield results in the 2nd quarter of 2022.
Energian CEO Matthews Riggs lowers the flames. According to him, the volume of energy production in 2021 was higher than expected – which led to high prices for gas. He reiterates that the company’s other projects in the field of development (including in Israel) continue according to The plans so that they anticipate that they will meet the set target – 200,000 barrels of oil per day and revenues of $ 2 billion each year.