Cyprus: TotalEnergies Announces Positive Appraisal of the Cronos Gas Discovery in Block 6

Rhea-AI Summary

TotalEnergies successfully completes drilling and production test of Cronos-2 appraisal well in offshore Cyprus, confirming significant gas resources and production potential in Block 6.

Insights

Energy Sector Analyst

The completion of the Cronos-2 appraisal well drilling and production test by TotalEnergies in Block 6 offshore Cyprus represents a significant milestone in the exploration and potential development of natural gas resources in the region. The confirmation of the lateral extension of the Cronos-1 discovery, along with the high net reservoir thickness and excellent gas deliverability, points to a substantial addition to TotalEnergies' portfolio of resources.

This development is particularly noteworthy in the context of the European energy market, which is currently seeking to diversify its energy sources away from Russian gas. The discovery could enhance the energy security of the region and potentially lead to a shift in the geopolitical energy landscape. The implications for the stock market could be substantial, as TotalEnergies' proven reserves and future revenue prospects may be positively reassessed by investors.

However, the actual impact on TotalEnergies' financials will depend on the full evaluation of the discovered resources and the chosen development option, which will determine the cost, timeline and ultimate production capacity of the project.

Geopolitical Analyst

The strategic significance of the Cronos-2 well goes beyond the immediate business implications for TotalEnergies and its partner Eni. Located in a region where energy resources play a pivotal role in diplomatic relations, the discovery could alter the balance of power in energy supply to Europe. With tensions surrounding energy independence heightened due to recent geopolitical events, the successful appraisal of significant gas resources in the Eastern Mediterranean may provide European countries with an alternative to their current energy dependencies.

Furthermore, the involvement of multiple international energy companies in Cyprus' offshore blocks underscores the importance of the region as an emerging energy hub. This could lead to increased foreign investment and collaboration, but also to potential disputes over maritime rights and resource allocation, as seen in other parts of the world with rich offshore resources.

Market Research Analyst

The announcement by TotalEnergies regarding the Cronos-2 well is likely to trigger a re-evaluation of the company's stock by market analysts. The successful test indicates not just a one-off discovery but a pattern of successful exploration in the area, evidenced by the previous Calypso-1 and Zeus-1 findings. This pattern enhances the company's reputation for effective exploration and project management.

For stakeholders, the short-term benefits include the potential rise in stock value due to the positive exploration results. In the long-term, the development of these resources could lead to increased revenue streams for TotalEnergies and contribute to the diversification of Europe's gas supply. Nonetheless, investors will be closely monitoring the company's next steps in evaluating and developing these resources, as these will provide a clearer picture of the potential return on investment.

PARIS--(BUSINESS WIRE)-- Regulatory News:

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) announces the successful completion of the drilling and production test of the Cronos-2 appraisal well, in Block 6, offshore Cyprus. TotalEnergies holds a 50% interest in Block 6, alongside with Eni (50%, operator).

The Cronos-2 well confirmed the lateral extension of the Cronos-1 discovery drilled in August 2022.

Located at approximately 160 km southwest of the Cyprus coast, Cronos-2 encountered several carbonate reservoir intervals with a net reservoir thickness of 115 meters. The production test confirmed an excellent gas deliverability of the well.

Two additional discoveries, Calypso-1 and Zeus-1, were made on the same Block in 2018 and 2022 respectively.

“The successful appraisal of the Cronos gas discovery confirms the presence of significant resources and production potential in Block 6. Full evaluation of the discovered resources will now be carried out to determine the best development option to contribute to supply gas to Europe and to the region”, said Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies.

In Cyprus, TotalEnergies is also present in offshore Block 11 (50%, operator), 7 (50%, operator), 2 (20%), 3 (30%), 8 (40%) and 9 (20%).

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About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, more sustainable, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

@TotalEnergies - TotalEnergies - TotalEnergies - TotalEnergies

Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240215995437/en/

TotalEnergies

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com

Source: TOTALENERGIES SE

FAQ

What is the latest development announced by TotalEnergies regarding the Cronos-2 appraisal well in offshore Cyprus?

TotalEnergies has successfully completed the drilling and production test of the Cronos-2 appraisal well in Block 6, confirming the lateral extension of the Cronos-1 discovery with excellent gas deliverability.

Who are the partners of TotalEnergies in Block 6 offshore Cyprus?

TotalEnergies holds a 50% interest in Block 6 alongside Eni, who is the operator with the remaining 50% interest.

Where is the Cronos-2 well located in relation to the Cyprus coast?

The Cronos-2 well is located approximately 160 km southwest of the Cyprus coast.

What other discoveries were made on the same Block as Cronos-2?

Two additional discoveries, Calypso-1 and Zeus-1, were made on the same Block in 2018 and 2022 respectively.

Who commented on the successful appraisal of the Cronos gas discovery?

Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, commented on the successful appraisal of the Cronos gas discovery.