Trading and Operations Update

RNS Number : 2939L

Genel Energy PLC

03 July 2014

 



3 July 2014

Genel Energy plc

Trading and Operations Update

Genel Energy plc ("Genel" or the "Company") issues a Trading and Operations Update in advance of the Company's half-year 2014 results, which are scheduled for release on 5 August 2014. The information contained herein has not been audited and may be subject to further review.

PRODUCTION AND REVENUES UPDATE

·	Gross production from Taq Taq averaged 92,000 bopd in H1 2014 and 113,000 bopd in June.
·	Gross production from Tawke averaged 84,000 bopd in H1 2014 and 116,000 bopd in June.
·	Genel net working interest production averaged 63,000 boepd in H1 2014, an increase of 50% on H1 2013.
·	Genel net working interest production averaged 84,000 boepd in June 2014 on the back of exports via the KRI-Turkey pipeline, trucked exports via Turkey, strong domestic demand and the ramp up of deliveries from the Summail gas field into the Dohuk power station.
·	The Company's 2014 production guidance is maintained at 60-70,000 boepd.
·	The Company's 2014 revenue guidance is maintained at $500-600 million.

OPERATIONS AND PIPELINE EXPORTS

·	Genel's operations in the Kurdistan Region of Iraq ("KRI") remain safe and secure.
·	First exports by the Kurdistan Regional Government ("KRG") via the new KRI-Turkey pipeline infrastructure were lifted from Ceyhan in May. Proceeds from the first cargo, sold at international prices, have been paid into a bank account in Turkey controlled by the KRG.

CAPEX AND BALANCE SHEET

·	The Company's 2014 capital expenditure guidance is maintained at $550-600 million.
·	Cash balances at end H1 2014 are expected to be c.$940 million following the successful $500 million senior unsecured bond issue in May. Net cash at end H1 2014 is expected to be c.$440 million.

KRI GAS BUSINESS

·	First gas from the Summail development on the Dohuk licence (Genel 40% working interest) was delivered into the Dohuk Power Station in late May. Production averaged 83 mmscfd in June and peaked at over 100 mmscfd during the month.
·	Good progress continues to be made negotiating a Gas Sales Offtake Agreement for the Miran field. These negotiations are expected to conclude before year-end 2014.

EXPLORATION UPDATE

Taq Taq Deep (KRI, Taq Taq PSC, Genel 44% working interest)

·	Testing operations have now been completed on the Taq Taq-22 ("Taq Taq Deep") well.
·	As previously reported, oil and gas shows were encountered in Jurassic and Triassic horizons beneath the main Cretaceous oil producing reservoirs in the field.
·	A testing programme was carried out over three separate zones in the Jurassic and Triassic. The tests flowed minor non-commercial rates of oil and gas due to the tight nature of the reservoirs.
·	The Taq Taq Deep well is being completed as a producer in the Cretaceous Shiranish reservoir.
·	The Taq Taq-23 deviated development well spudded in June and is expected to take three months to complete.

Hagar Qim-1 (Malta Area 4, Genel 75% working interest)

·	The Hagar Qim-1 well on the Area 4 licence offshore Malta has been drilled to the Eocene and plugged and abandoned with no indication of hydrocarbons.
·	The Noble Paul Romano rig will now move to drill the Nour prospect on the Sidi Moussa (Genel 60% working interest) block offshore Morocco. The well is targeting prospective resources of 300 mmbbls at a 20% probability of success. Drilling operations are expected to commence in August and take 2 to 3 months to complete.

Dilolo-1 (Angola Block 39, Genel 7.5% working interest)

·	The Stena Carron drillship spudded an exploration well on the material Dilolo prospect offshore Angola in June 2014. Drilling operations are expected to take up to 5 months to complete.

-ends-

For further information, please contact:

Genel Energy Julian Metherell, Chief Financial Officer Phil Corbett, Head of Investor Relations Andrew Benbow, Head of Public Relations

[phone]

Vigo Communications Patrick d'Ancona

[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 independent oil producer and the largest holder of reserves in the Kurdistan Region of Iraq and, through value-accretive acquisitions, is building a high impact exploration portfolio within the Middle East and Africa.  For further information, please refer to www.genelenergy.com. 

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements.

 

END

 

 

MSCKLLFBZDFZBBF