Delivering Sustainable Growth in the E&P Business Το σχέδιο ανάπτυξης του κοιτάσματος υδρογονανθράκων στο Δυτικό Κατάκολο Δρ. Κωνσταντίνος Νικολάου , Τεχνικός Σύμβουλος Energean Δημοτικό Συμβούλιο Πύργου, 14 Νοεμβρίου 2019 1
Energean at a Glance The leading independent, gas-focused, sustainable E&P company in the East Mediterranean East Med Focused Key Metrics 8 ~820 MMboe Reserves and Countries of Operations resources* ~80% ~60 kboed Gas-weighted Production in 2019* portfolio FTSE 250 & ESG & HSE TA-35 Focused Leading Independent A rating MSCI E&P Underpinned by our Core Competencies of Disciplined Capital Allocation, Operational Excellence, Risk Mitigation and Effective Project Delivery *Edison E&P reserve estimates as of 31.10.2018, excludes UK, Norway and Algeria Energean Israel reserve estimates as of 30.06.2019 CPR 2 Energean reserve estimates are pending finalization of 2019 CPR 2019 Production excludes Algeria and UK
2019 – The Year the World Woke Up to Climate Change 3
O&G Companies, Governments and Banks are Under Unprecedented Pressure 4
Leaders in ESG through Action 70% gas focus Committed to the UN Global Compact ‘ Business Ambition for 1.5 ° C: Our Only Future’ campaign and net zero emissions by 2050 Estimated 70% reduction in carbon intensity 2020-23 Employees from 28 countries around the world Female chairperson Executive pay linked to ESG goals from 2020 5
Over a Decade of Continuous Growth Energean : A Continuous Growth Story Since 2008 – 78% CAGR Of Reserves and resources have grown exponentially, despite the recent downturn Acquisition Development Analysts predict Third Point invests Analysts predict Energean acquires Energean IPO & Edison E&P of Prinos of Prinos 900 $200 oil price in Energean Karish & Tanin Project FID $20 oil price acquisition 800 73% CAGR in Reserves and 700 Resources 2008-20E* mmboe 600 500 400 300 200 100 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Prinos 2P Prinos 2C Katakolo 2P Karish and Tanin 2P Karish and Tanin 2C Karish North 2C Edison 2P & 2C *Excludes UK, Norway and Algeria from Edison. 6
2019 Marked Another Year of Success A number of events laid the foundations for growth, ensuring a sustainable future Edison E&P Acquisition: Adding operating cash flow of c.$210 million & EBITDAX of c.$235 million 25 Bcm gas + 34 MMbbl light oil (~190 MMboe): Discovery of Karish North offshore Israel 4 deepwater wells: Drilled offshore Israel with a best in class HSE record 4 shallow water wells: Drilled offshore Greece + 2P reserves increase at Epsilon & Katakolo Key Milestones Karish project 72% complete: FPSO construction at an advanced stage 5.0 Bcm/yr of firm GSPAs signed in Israel: With a further 1.3 Bcm/yr of contingent contracts & 2.0 Bcm/yr of potential sales to be discussed under a Letter of Intent $265 million: Of new equity raised from shareholders $600 million: Secured from international banks to fund the Edison E&P acquisition 7
Our Next 24 Months: Focus on Israel Karish project at 72% complete and further exploration success targeted on Block 12* 2020 milestones: • FPSO Workstream - Hull sailaway from Cosco Yard - Hull and topsides integration - Completed FPSO sailaway from Singapore • Drilling Workstream - Complete development wells • Subsea and Onshore Workstreams - Pipeline installation Karish to Dor - Onshore facilities commissioning - Installation of subsea infrastructure 2019 progress 2020 drilling plans: • Zeus well on Block 12 - Between Karish and Tanin leases - Targeting 641 bcf / 18 bcm with 75% CoS - Discovery tied back to the Energean FPSO - $35 million (gross) cost - No seller royalties and gas export rights Potential Block 12 follow on wells: • Hera prospect - - 485 bcf / 14 bcm* • Athena prospect - - 853 bcf / 24 bcm* Zeus prospect, Block 12 *Unrisked gross prospective resources 72% completion at Karish refers to physical completion 8
‘Filling The Boat’: Capacity Overview DEPA Letter of Intent (LoI) Contracted volumes & spare capacity For the potential sale and purchase of up to 2.0 BCM/yr . 9 8.0 New Contract 8 Up to 0.2 BCM/yr contingent on additional resource in 2020. Supply ramp up between 2022 and 2025. 7 Available for tie-back of future discoveries 6.3 and additional gas sales from Karish North 6 Or Contract 0.7 BCM/yr contingent on Or Power Plant Financial 5 Close. Or has unlimited capacity to dispose of gas for alternate uses 6.1 4 IPM Contract Secured Revenues 0.4 BCM/yr post-2024 contingent on additional 3 resource in 2020. We may supply additional gas pre- 2024 2 12 Firm Contracts 5.4 1 5.0 BCM/yr Av. 16 yrs 75% ToP 0 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025 5.0 Major IPPs and Industrial customers Firm Contracts IPM Contract Or Contract New Spare Capacity 9
Key Demand Drivers: Gasification of the Israeli Economy Israel Gas Demand Growth Israel Gas Demand Drivers 40 • Growing electricity sector to serve population growth 35 • Rising living standards 30 • Increased water desalination bcma 25 • Electrification of the railway system 20 15 • Adoption of electric vehicles 10 • Compressed natural gas (CNG) for transportation 5 • Ministry of Energy focused on reducing harmful 0 emissions and diversifying the fuel mix Energean Contracted Energean Available Capacity Rest of Market per Ministry of Energy Additional demand per BDO Power station privatisation Recent Progress Capacity – MW Site Bcm/y Last date of delivery of possession Closure of the following coal-fired power-stations Alon Tavor 600 0.5 December 2019 announced, increasing demand for gas: Ramat Hovav 1,137 1.0 December 2020 • Units 5-6 of Orot Rabin, Hadera – 1150 MW Reading 428 0.4 June 2021 • Units 1-4 of Rotenberg, Ashkelon – 2250 MW Hagit 697 0.6 June 2022 Eshkol 1,693 1.8 June 2023 10
Export Markets Offer Additional East Med Gas Monetisation Options EastMed Pipeline An Export Route to Europe • Proposed 1,700 kilometer pipeline • Connecting the East Med’s Levantine Base (Israel) with the European gas network via Cyprus, Greece & Italy • Classified as an EU Project of Common Interest • Estimated $6-7 billion construction costs • Capacity of up to 10 bcm/year of gas • The pipeline is being developed by IGI Poseidon, a JV of Greece’s state -owned DEPA and Edison SpA Recent Progress • Energean and DEPA signed a LoI in January 2020 for the potential sale and purchase of up to 2 bcm/year of gas from its fields offshore Israel • The very same day, the leaders of Cyrpus, Greece and Israel signed the EastMed Pipeline Accord in Athens • Italy is expected to sign the agreement at a later date, at which point the agreement will come into full effect • The countries are targeting FID in 2022 and pipeline completion by 2025 11
Energean + Edison E&P: On a Trajectory to Produce up to 140 kboed by 2022 Combined 2P Reserves Breakdown* Growth story, focused on developing new reserves Italy 15% (85 mmboe) Israel 49% Egypt 26% (287 mmboe) (152 mmboe) Croatia <1% Immediate cash flows & Greece 9% (54 mmboe) EBITDAX with incremental growth opportunities Transaction Progress Focus On Gas (2P Reserves MMboe)* • 2020 milestones: − Publication of Circular and EGM Q2 131 ~80% gas-weighted* − Publication of Enlarged Group Prospectus and Technical Readmission Q2 580 Settlement of the Algeria asset − ~140 kboed production Completion of Edison E&P acquisition H1 449 − by 2022* − Disposal of Non-Core Assets to Neptune H1 Liquids Gas − Portfolio Integration and Optimisation H2 *Excludes UK, Norway and Algeria from Edison. 12
Greece: Focused on Delivering Epsilon and Developing Katakolo Epsilon Development Project • Currently developing Epsilon satellite - $100 million investment • 4x wells drilled in 2019 (3x vertical & 1x ERW) • First oil from the Epsilon ERW achieved in April 2019 • Expected 2P reserve increase to 21 mmboe Katakolo Progress • Expected 33% uplift in 2P reserves, to 14 mmboe • Award of the EIA expected in Q2 2020 • Final Investment Decision targeted by end-2020 • ERW to be drilled from onshore to offshore reservoirs. Exploration Activity • 2D seismic survey completed in Ioannina block in 2019 • Ioannina best estimate prospective resources 103 Bcf and 187 million bbls • Ioannina drill or drop decision by end-2020 • 2D seismic survey to commence in the Aitoloakarnania block in 2020 13
Montenegro: Drill or Drop Decision by End-2020 Material Position • Operator, 100% WI in offshore blocks 4219-26 and 4218- 30 • Best estimate unrisked prospective resources 143.9 mmbbls and 1,766.1 Bcf Commitments Fulfilled • First round exploration commitment fulfilled − 338 km2 new 3D shot in Feb 2019 To be processed together with legacy 2D − − Full results expected start-2020 Drill-or-drop decision by end-2020 − Majors Focusing on the Area • Eni (50% WI, operator) and NOVATEK (50% WI) own the four blocks to the south − Shot seismic in 4Q 2018-1Q 2019 Expected to drill two wells in 2020 − 14
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