Miran Acquisition Update

RNS Number : 6074K

Genel Energy PLC

23 August 2012

 



23 August 2012

Genel Energy plc

("Genel Energy" or the "Company")

Update on acquisition of additional interest in the Miran Block

On 21 August 2012, Genel Energy announced that it had entered into a sale and purchase agreement to acquire an additional 26 per cent interest in the Miran exploration block in the Kurdistan Region of Iraq (the "Miran Block") from Heritage Energy Middle East Limited ("HEME") (the "Acquisition").

Genel Energy today announces that, following discussions with the Ministry for Natural Resources in the Kurdistan Region of Iraq, Closing took place under the sale and purchase agreement yesterday. Following such Closing and formal approval of the Acquisition by the Regional Council for the Oil and Gas Affairs of the Kurdistan Region - Iraq, Genel Energy will, combined with its existing holdings, have a 51 per cent working interest in the Miran Block.

Genel Energy and HEME have agreed to establish a new joint venture company for the purposes of managing the Miran Block, to be held between them pro rata to their working interests in the field. HEME will transfer the operatorship of the Miran Block to the new vehicle within 60 days.

Simultaneously, Heritage Oil Plc ("Heritage") drew down $294 million from its bilateral loan with Genel Energy, the terms of which were previously announced on 21 August 2012. The Loan is made on standard commercial terms and is secured against both Heritage's interest in the share capital of HEME and Heritage's working interest in the Miran Block.

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 For further information, please contact:

Genel Energy plc Julian Metherell Natalie Fortescue	[phone]
M: Communications Patrick d'Ancona Andrew Benbow	[phone]

Notes to editors:

Genel Energy is an independent oil and gas exploration and production company listed on the main market of the London Stock Exchange (LSE: GENL). The company, with headquarters in London and additional offices in Ankara and Erbil, is the largest oil producer and the largest holder of reserves in the Kurdistan Region of Iraq. For further information, please refer to www.genelenergy.com.

This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe for, sell or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise acquire, issue, subscribe for, sell or, otherwise dispose of, any securities.

This announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities.  The securities of the Company referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless they are registered with the U.S. Securities and Exchange Commission or an exemption from the registration requirements of the Securities Act is available.

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.

Certain statements in this announcement are forward‑looking statements which are based on the Company's, expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts.  These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward‑looking statements.  Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward‑looking statements.  Forward‑looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward‑looking statements, whether as a result of new information, future events or otherwise.

 

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