Acquisition of Remaining Miran Interest

RNS Number : 8349Q

Genel Energy PLC

12 November 2012

 



12 November 2012

Genel Energy plc

("Genel Energy" or the "Company")

Genel to acquire the remaining 49% interest in the Miran Block and assume full operatorship

Genel Energy announces that on the 9 November 2012, Heritage Oil Plc ("Heritage") issued the Exchange Repayment Notice notifiying the Company of its intention to repay the $294 million loan made by Genel Energy to Heritage in August 2012 through the transfer of Heritage's remaining 49 per cent interest in the Miran exploration block in the Kurdistan Region of Iraq (the "Exchange Repayment"). The interest in the Miran Block is currently held by Heritage Energy Middle East Limited ("HEME"), a wholly owned subsidiary of Heritage.

The Exchange Repayment is subject to the approval of Heritage's shareholders in a general meeting. In addition to shareholder approval, the Exchange Repayment and subsequent acquisition of the additional interest by Genel Energy, is subject to (i) receipt of relevant approvals being granted by the Minister of Natural Resources for the Kurdistan Regional Government and the Regional Council for the Oil and Gas Affairs of Kurdistan; and (ii) the execution of an amendment and novation agreement between HEME and the Genel acquisition vehicle, Genel Energy (Miran) Limited; and (iii) other customary closing conditions.

Genel Energy previously acquired a 26 per cent working interest in the Miran Block from HEME on 23 August 2012, taking its current holding in the block to 51 per cent. Following the Exchange Repayment and subsequent acquisition, Genel Energy will own 100 per cent of the Miran Block (75 per cent working interest post KRG back-in right) and will be the sole operator.

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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 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.

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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