Drilling Update - Miran West-3 well

RNS Number : 6437Y

Genel Energy PLC

05 March 2012

 



Genel Energy plc

5 March 2012

Genel Energy plc

Drilling Update - Miran West-3 well

Genel Energy plc ("Genel Energy") notes that Heritage Oil Plc ("Heritage"), as operator of the Miran Block in the Kurdistan Region of Iraq, has today issued the following press release:

"Heritage has completed well testing and wireline log evaluation of the Lower Cretaceous reservoir in the Miran West-3 well and is currently at a depth of 2,910 metres.

Testing in the Lower Cretaceous formation resulted in no measurable flow of hydrocarbons to surface due to the lack of an extensive connected fracture network at this location. The results from detailed wireline log interpretation, observations whilst drilling and gas recovered at surface confirm that the Lower Cretaceous reservoir formation is gas bearing. Detailed work is being undertaken on the recently processed 3D seismic and offset well data to establish the areas of effective reservoir for this formation.

Below the Lower Cretaceous reservoir the well encountered a high pressure interval as well as a loss of circulation which resulted in the need to sidetrack the well. This interval has now successfully been drilled and the well is currently at a depth of 2,910 metres and being logged.

Further drilling will appraise the Jurassic reservoir intervals which were discovered by the Miran West-2 well. A number of tests are planned and drilling is expected to be completed within the next couple of months.

A second rig to drill the Miran East-1 well is on location and expected to commence drilling shortly."

Tony Hayward, chief executive of Genel Energy said:

"The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure - integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning."

For further information, please contact:

Genel Energy Julian Metherell, Chief Financial Officer Natalie Fortescue, Investor Relations

[phone]

RLM Finsbury Ed Simpkins Jenny Davey

[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

Genel Energy holds a 25% interest in the Miran Block and Heritage Oil Plc holds the remaining 75%, although there are third party back-in rights. The Miran Block has an area of 1,015 square kilometres and is located west of the city of Suleimaniah. The Miran Block contains two large structures, Miran West and Miran East.

 

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