Gas exploration and production company Energean Plc said on Dec. 7 it was in exclusive talks to buy out its private equity shareholder Kerogen Capital to fully own its Israeli offshore fields.
London-listed Energean, which holds a 70% interest in its Israeli unit, which has secured offtake agreements for 7 billion cubic meters a year of gas, said the Karish project is expected to go onstream in the fourth quarter of 2021.
"Based upon consensus (1072p/share) valuations of Energean’s 70% stake, Kerogen’s interest is worth $1 billion—plus/minus Kerogen’s 30% share of the drawn $1.45 billion project finance facility," RBC analysts said in a note.
Energean and Kerogen have entered a 30-day exclusivity agreement on a potential deal, which would require shareholder and regulatory approval.
Energean said it expects to fund the potential deal without issuing equity.
The Israeli licenses hold 98 billion cubic meters of natural gas reserves and 100 million barrels of oil, according to a third-party analysis.
Energean said it expected to close its acquisition of Edison's upstream assets, excluding its Algerian and Norwegian units, this month.
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