Interim Management Statement

RNS Number : 8424C

Genel Energy PLC

22 April 2013

 



22 April 2013

Genel Energy plc

Interim Management Statement

Genel Energy plc ("Genel Energy" or "the Company") issues the following Interim Management Statement for the period from 1 January 2013 to today. This statement is issued ahead of Genel Energy's Annual General Meeting, which is being held at 11.00am today at the Sofitel St James's, 6 Waterloo Place, London, SW1Y 4AN.

Highlights

PRODUCTION

·      2013 guidance unchanged: production at 45,000 - 55,000 bopd and revenue of $300 - 400 million

·      Net working interest production for the first quarter averaged 37,000 bopd

o  revenues in line with budget due to strong price realisations from domestic sales of around $70 per barrel

o  Taq Taq and Tawke averaged 73,000 bopd and 18,000 bopd respectively, with  volumes impacted by the New Year national holiday and maintenance work at Tawke  

·      Production capacity at key assetscontinues to grow:

o  Taq Taq gross production capacity is currently 120,000 bopd, development drilling and processing capacity expansion continues and is on track to deliver capacity of 200,000 bopd in 2014

o  Tawke gross production capacity is 100,000 bopd and is targeting 200,000 bopd by the end of 2014 with further development drilling underway

INFASTRUCTURE AND EXPORTS

·      Exports to Turkey by truck commenced in January

o  volumes exported expected to rise to 15,000-20,000 bopd over the rest of the year

o  TTOpCo crude was lifted for the first time at Mersin, Turkey on the 16th April

·      Significant progress with infrastructure developments with Taq Taq-Khurmala pipeline complete.  Second phase from Khurmala to the Fishkabur pump station on the border with Turkey is under construction with initial capacity 300,000 bopd. Expected to be complete in 4Q including potential conversion to oil of the Khurmala-Dohuk gas pipeline    

DEVELOPMENT AND APPRAISAL

·      Continued momentum in developing and commercialising our highly prospective Miran and Bina Bawi assets

·      Miran West field development progressing for both oil and gas: Extended Well Test for oil commenced with production at c.3,000 bopd.  FEED progressing and expected to complete 2Q. Gas sales negotiations ongoing

·      Bina Bawi Declaration of Commerciality on the field with Extended Well Test for oil commenced at an initial capacity of 5,000 bopd

·     Appraisal wells BB-4 and BB-5 each penetrated hydrocarbon columns in excess of 1100 metres confirming a gross hydrocarbon column in the structure of at least 1500 metres, with the potential for an additional 500 metres hydrocarbon column to spill point.  Extensive test programmes are now underway on both wells

EXPLORATION

·      Significant new oil discovery at the Chia Surkh field in the Kurdistan Region of Iraq ("KRI"); test flow rates of up to 11,950 bopd; first appraisal well spudded

·      Extensive well testing programme underway at Tawke Deep over 2,000 metres of previously untested Jurassic and Triassic sections in which significant oil and gas shows were encountered during drilling

·      Four more high impact wells in the KRI during 2013, targeting 1.5bn boe gross unrisked prospective resources including Taq Taq Deep which spudded on 27 March 2013

·      Work programmes progressing across African exploration portfolio; advanced negotiations to secure a rig with ten slots ongoing and drilling programme on schedule to commence late 2013

o  Wells in Morocco and Malta to spud in Q4 2013

o  2D seismic acquisition programme underway in Somaliland

FINANCE

·      2013 capital expenditure guidance unchanged at c.$400-500 million (including Africa capital expenditure at c.$150million); KRI activities funded by cash from current operations

·      Cash balance at 19 April c.$0.9 billion

Tony Hayward, chief executive of Genel Energy said:

"Genel has started 2013 strongly with a significant oil discovery at Chia Surkh, very encouraging results so far from our Bina Bawi appraisal wells and good progress made across the board in our major development projects. As political momentum continues to build and the construction of independent regional infrastructure moves forward rapidly, it is evident that 2013 is set to be a highly significant year for both Genel and the Kurdistan Region's oil and gas industry."

Future announcements

Genel Energy's 2013 Half Year Results will be announced on Wednesday 31st July 2013.

For further information, please contact:

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

[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

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

 

 

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