Energean Israel Half Year 2023 Accounts

		30 June (Unaudited)
(a) Cost of sales
Staff costs		4,071		-
Energy cost		2,285		-
Royalty payable		63,474		-
Depreciation and amortisation (Note 7)		73,397		-
Other operating costs		38,203		-
Liquids inventory movement (Note 11)		(3,353)		-
Total cost of sales		178,077		-
(b) General & administration expenses	(c)		(d)
Staff costs		1,715		935
Share-based payment charge		312		80
Depreciation and amortisation (Note 7, 8)		978		110
Auditor fees		106		88
Other general & administration expenses		5,937		4,240
Total administrative expenses		9,048		5,453
(c) Exploration and evaluation expenses
Other exploration and evaluation expenses		50		-
Total exploration and evaluation expenses		50		-
(d) Other expenses
Loss from disposal of property, plant and equipment		-		1,074
Total other expenses		-		1,074
(e) Other income	(f)		(g)
Other income		-		53
Total other income		-		53

	30 June (Unaudited)
Interest on senior secured notes (1)	68,333	68,179
Interest expense on long terms payables (3)	1,554	4,731
Less amounts included in the cost of qualifying assets (2)	(7,592)	(68,866)
	62,295	4,044
Finance and arrangement fees	1,481	2,842
Other finance costs and bank charges	55	284
Unwinding of discount on trade payable	2,060	264
Unwinding of discount on provision for decommissioning	1,668	343
Unwinding of discount on right of use asset (1)	98	160
Less amounts included in the cost of qualifying assets (2)	(88)	(3,266)
	5,274	627
Total finance costs	67,569	4,671
Interest income from time deposits	(1,044)	(1,290)
Interest income from loans to related parties	-	(3,214)
Total finance income	(1,044)	(4,504)
Net foreign exchange losses	5,578	967
Net finance expense	72,103	1,134

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		Page

Interim Condensed Consolidated Statement of Comprehensive Income		3
Interim Condensed Consolidated Statement of Financial Position		4
Interim Condensed Consolidated Statement of Changes in Equity		5
Interim Condensed Consolidated Statement of Cash Flows		6
Notes to the Interim Condensed Consolidated Financial Statements		7-20

			30 June (Unaudited)
	Notes	2023 $'000		2022 $'000
Revenue	3	347,743		-
Cost of sales	4	(178,077)		-
Gross profit		169,666		-

Administrative expenses	4	(9,048)		(5,453)
Exploration and evaluation expenses	4	(50)		-
Other expenses	4	-		(1,074)
Other income	4	-		53
Operating profit/(loss)		160,568		(6,474)

Financial income	5	1,044		4,504
Financial expenses	5	(67,569)		(4,671)
Foreign exchange loss, net	5	(5,578)		(967)
Profit/(loss) for the period before tax		88,465		(7,608)

Taxation (expense)/income	6	(20,215)		2,703
Net profit (loss) for the period		68,250		(4,905)

	Notes	30 June 2023 (Unaudited) $'000	31 December 2022 $'000
ASSETS:
NON-CURRENT ASSETS:
Property, plant and equipment	7	2,873,206	2,926,313
Intangible assets	8	156,689	143,554
Other receivables	10	8,506	108
Deferred tax asset	9	2,827	22,886
		3,041,228	3,092,861
CURRENT ASSETS:
Trade and other receivables	10	97,381	82,611
Inventories	11	13,327	8,313
Restricted cash		8,481	71,778
Cash and cash equivalents		64,688	24,825
		183,877	187,527
TOTAL ASSETS		3,225,105	3,280,388

EQUITY AND LIABILITIES:
EQUITY:
Share capital		1,708	1,708
Share premium		212,539	212,539
Retained losses		(2,278)	(70,528)
TOTAL EQUITY		211,969	143,719
NON-CURRENT LIABILITIES:
Senior secured notes	12	1,852,685	2,471,030
Decommissioning provisions		87,400	84,299
Trade and other payables	13	205,870	210,241
		2,145,955	2,765,570
CURRENT LIABILITIES:
Current portion of senior secured notes	12	622,225	-
Trade and other payables	13	244,956	371,099
		867,181	371,099
TOTAL LIABILITIES		3,013,136	3,136,669
TOTAL EQUITY AND LIABILITIES		3,225,105	3,280,388

	Share capital $'000	Share Premium $'000	Accumulated losses $'000	Total equity $'000
Balance as of 1 January 2023	1,708	212,539	(70,528)	143,719
Profit for the period	-	-	68,250	68,250
Balance as of 30 June 2023 (unaudited)	1,708	212,539	(2,278)	211,969

Balance as of 1 January 2022	1,708	572,539	(35,946)	538,301
Transactions with shareholders
Share premium reduction (*)	-	(360,000)	-	(360,000)
Comprehensive loss
Loss for the period	-	-	(4,905)	(4,905)
Balance as of 30 June 2022 (unaudited)	1,708	212,539	(40,851)	173,396

		30 June (Unaudited)
	Notes	2023 $'000	2022 $'000
Operating activities
Profit (Loss) for the period before tax		88,465	(7,608)
Adjustments to reconcile loss before taxation to net cash provided by operating activities:
Depreciation, depletion and amortisation	4	74,375	110
Loss from sale on property, plant and equipment	4	-	1,074
Amortisation of payment made in advance to customers	3	4,928	-
Finance Income	5	(1,044)	(4,504)
Finance expenses	5	67,569	4,673
Net foreign exchange loss	5	5,578	967
Cash flow from operations before working capital		239,871	(5,288)
(Increase)/decrease in trade and other receivables		(36,564)	871
Increase in inventories		(5,014)	-
Decrease in trade and other payables		(25,707)	(310)
Cash from operations		172,586	(4,727)
Income taxes paid		(368)	(558)
Net cash inflows from/(used in) operating activities		172,218 819	(5,285)
Investing activities
Payment for exploration and evaluation, and other intangible assets	8(B)	(69,227)	(10,034)
Payment for purchase of property, plant and equipment	7(C)	(115,511)	(130,118)
Proceeds from disposals of property, plant and equipment		-	188
Amounts received from INGL related to transfer of property, plant and equipment	10	56,906	17,371
Movement in restricted cash, net		63,297	64,119
Interest received		1,841	1,544
Net cash outflows used in investing activities		(62,694)	(56,930)
Financing activities
Senior secured notes - interest paid	12	(64,453)	(64,453)
Other finance cost paid		(91)	(1,869)
Finance costs paid for deferred licence payments		(2,496)	-
Transaction cost related to Senior Secured Notes	16	(1,214)	-
Repayment of obligations under leases	13	(570)	(499)
Net cash outflow used in financing activities		(68,824)	(66,821)

Net increase/(decrease) in cash and cash equivalents		40,700	(129,036)
Cash and cash equivalents at beginning of the period		24,825	349,827
Effect of exchange differences on cash and cash equivalents		(837)	(2,080)
Cash and cash equivalents at end of the period		64,688	218,711

Energean Israel Half Year 2023 Accounts

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NOTE 1: - GENERAL

NOTE 2: - Accounting policies and basis of preparation

NOTE 3: - Revenues

NOTE 4: - Operating profit (loss) before taxation

NOTE 5: - Net finance income/(expenses)

NOTE 6: - Taxation

NOTE 7: - Property, Plant and Equipment

NOTE 7: - Property, Plant and Equipment (Cont.)

NOTE 8: - Intangible Assets

NOTE 9: - Deferred taxes

NOTE 10: - Trade and other receivables

NOTE 11: - Inventory

NOTE 12: - Borrowings and secured notes

NOTE 13: - Trade and other payables

NOTE 14: - Financial Instruments

NOTE 15: - Significant events and transaction during the reporting period

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Country	Asset	Field	Working interest	Field phase
Israel	Karish	Karish Main	100%	Production
Israel	Karish	Karish North	100%	Development
Israel	Tanin	Tanin	100%	Development
Israel	Blocks 12, 21, 23, 31	Athena, Zeus, Hera, Hermes and Hercules	100%	Exploration

	Oil and gas Assets $'000	Leased assets $'000	Furniture, fixtures and equipment $'000	Total $'000
Cost:
At 1 January 2022	2,241,783	4,009	829	2,246,621
Additions ⁽¹⁾	514,373	731	1,165	516,269
Disposals	(900)	-	-	(900)
Capitalised borrowing cost ⁽²⁾	129,357	-	-	129,357
Capitalised depreciation	632	-	-	632
Change in decommissioning provision	47,544	-	-	47,544
Total cost at 31 December 2022	2,932,789	4,740	1,994	2,939,523
Additions ⁽¹⁾	111,124	12,197	111	123,432
Handover to INGL⁽⁴⁾	(111,448)	-	-	(111,448)
Capitalised borrowing cost ⁽²⁾	7,680	-	-	7,680
Change in decommissioning provision	1,433	-	-	1,433
Total cost at 30 June 2023 (unaudited)	2,941,578	16,937	2,105	2,960,620

Depreciation:
At 1 January 2022	433	693	228	1,354
Charge for the year ⁽³⁾	10,976	134	297	11,407
Capitalised to oil and gas assets	-	632	-	632
Disposals	(433)	-	-	(433)
Write down of the assets	250	-	-	250
Total Depreciation at 31 December 2022	11,226	1,459	525	13,210
Charge for the period	73,397	618	189	74,204
Total Depreciation at 30 June 2023 (unaudited)	84,623	2,077	714	87,414

At 31 December 2022	2,921,563	3,281	1,469	2,926,313
At 30 June 2023 (unaudited)	2,856,955	14,860	1,391	2,873,206

	Exploration and evaluation assets $'000	Software licences $'000	Total $'000
Cost:
At 1 January 2022	20,141	255	20,396
Additions ⁽¹⁾	123,005	1,713	124,718
Write off of exploration and evaluation costs ⁽²⁾	(1,277)	-	(1,277)
At 31 December 2022	141,869	1,968	143,837
Additions ⁽¹⁾	13,306	-	13,306
At 30 June 2023 (unaudited)	155,175	1,968	155,173
Amortisation:
At 1 January 2022	-	255	255
Charge for the year	-	28	28
Total Amortisation at 31 December 2022	-	283	283
Charge for the period	-	171	171
Total Amortisation at 30 June 2023 (unaudited)	-	454	454

At 31 December 2022	141,869	1,685	143,554
At 30 June 2023 (unaudited)	155,175	1,514	156,689

	Property, plant and equipment & intangible assets $'000	Right of use asset IFRS 16 $'000	Tax losses $'000	Deferred expenses for tax $'000	Staff leaving indemnities $'000	Accrued expenses and other short‑term liabilities and other long‑term liabilities $'000	Decommissioning provision $'000	Total $'000
At 1 January 2023	(40,344)	(754)	56,415	6,209	167	1,193	-	22,886
Increase/(decrease) for the period through:
Profit or loss	(13,597)	(2,663)	(6,305)	(314)	50	2,770	-	(20,059)
At 30 June 2023	(53,941)	(3,417)	50,110	5,895	217	3,963	-	2,827
At 1 January 2022	(12,632)	(762)	4,750	11,031	94	923	8,171	11,575
Increase/(decrease) for the year through:
Profit or loss	(27,712)	8	51,665	(4,822)	73	270	(8,171)	11,311
At 31 December 2022	(40,344)	(754)	56,415	6,209	167	1,193	-	22,886

	30 June 2023 (Unaudited) $'000	31 December 2022 $'000
Deferred tax liabilities	(57,358)	(41,099)
Deferred tax assets	60,185	63,985
	2,827	22,886

	30 June 2023 (Unaudited) $'000	31 December 2022 $'000
Current
Financial items Trade receivables
Trade receivables	93,896	37,491
Other receivables ⁽¹⁾	2,294	999
Refundable VAT	-	37,131
Accrued interest income	92	888
	96,282	76,509
Non-financial items
Prepayments	363	159
Prepaid income tax	189	-
Deferred expenses ⁽²⁾	-	4,929
Prepaid expenses and other receivable	547	1,014
	1,099	6,102
Total current trade and other receivables	97,381	82,611
Non-current
Financial items
Other receivables ⁽¹⁾	4,949	-
Non-financial items
Deferred borrowing fees⁽³⁾	3,449	-
Deposits and prepayments	108	108
	3,557	108
Total non-current trade and other receivables	8,506	108

	30 June 2023 (Unaudited) $'000	31 December 2022 $'000
Hydrocarbon liquids	5,707	2,367
Natural gas	457	383
Raw materials and supplies	7,163	5,563
Total	13,327	8,313

			30 June 2023 (Unaudited)	31 December 2022
Series	Maturity	Annual fixed Interest rate	Carrying value $'000	Carrying value $'000
US$ 625 million	30 March 2024	4.500%	622,225	620,461
US$ 625 million	30 March 2026	4.875%	618,918	617,912
US$ 625 million	30 March 2028	5.375%	617,447	616,767
US$ 625 million	30 March 2031	5.875%	616,320	615,890
US$2,500 million			2,474,910	2,471,030

	30 June 2023 (Unaudited) $'000	31 December 2022 $'000
Senior secured notes - current	622,225	-
Senior secured notes - non current	1,852,685	2,471,030
Total	2,474,910	2,471,030

	Fair value hierarchy as at 30 June 2023 (unaudited)
	Level 1 $'000	Level 2 $'000	Total $'000
Financial assets
Long term other receivables	-	4,949	4,949
Short term restricted cash	8,481	-	8,481
Short term trade and other receivables	-	96,282	96,282
Cash and cash equivalents	64,688	-	64,688
Total	73,169	101,231	174,400
Financial liabilities
Senior secured notes ⁽¹⁾	2,311,875	-	2,311,875
Trade and other payables - long term	-	205,504	205,504
Trade and other payables - short term	-	178,822	178,822
Total	2,311,875	384,326	2,696,201

	Fair value hierarchy as at 31 December 2022
		Level 1 $'000	Level 2 $'000	Total $'000
Financial assets
Short term restricted cash		71,778	-	71,778
Short term trade and other receivables		-	76,509	76,509
Cash and cash equivalents		24,825	-	24,825
Total		96,603	76,509	173,112
Financial liabilities
Senior secured notes ⁽¹⁾		2,298,125	-	2,298,125
Trade and other payables - long term		-	210,062	210,062
Trade and other payables - short term		-	252,730	252,730
Total		2,298,125	462,792	2,760,917