Interim Management Statement

RNS Number : 1748F

Genel Energy PLC

22 April 2014

 



22 April 2014

Genel Energy plc

Interim Management Statement

Genel Energy plc ("Genel" or "the Company") issues the following Interim Management Statement for the period from 1 January 2014 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, 6 Waterloo Place, London, SW1Y 4AN.

PRODUCTION AND REVENUE

·     2014 production and revenue guidance unchanged at 60,000-70,000 boepd and revenue of $500-600 million

·     Net working interest production for the first quarter averaged 50,000 bopd, an increase of 35% on Q1 2013

o  Taq Taq and Tawke averaged 81,000 bopd and 57,000 bopd respectively

·     Domestic sales realisations were $69/bbl for Taq Taq and $58/bbl for Tawke

·     Production and revenues expected to increase over the course of 2014 as the Kurdistan Region of Iraq ("KRI") oil pipeline system comes into operation

INFRASTRUCTURE

·     The KRI pipeline commissioning process is substantially complete after compression was installed at the Khurmala Dome. Works to replace a short section of the 40 inch Iraq-Turkey pipeline in Turkey and install extra compression at Fishkabur are expected to be completed in H2 2014.

DEVELOPMENT AND APPRAISAL

·     At the Taq Taq field, the construction of the second central processing facility is progressing and is on track for completion around year end. The drilling of the first deviated and horizontal wells on the field will follow completion of the Taq Taq Deep exploration well.

·     During the quarter, two additional horizontal development wells were completed at the Tawke field and brought onstream at a combined rate of 37,000 bopd. The operator, DNO International, has outlined plans to increase field processing capacity from 100,000 bopd to 200,000 bopd by the end of 2014 through the installation of early production facilities.

·     First gas production from the Summail field development is expected shortly.

EXPLORATION

·     In April, the company announced that, together with White Rose Energy Ventures, it had agreed to acquire 15% working interests in Block 38 and 39 offshore Angola. The transactions provide Genel with a position in exploration licences that hold multi-billion barrel prospectivity and represent an attractive high-impact near-term exploration opportunity. The Stena Carron drillship has been contracted for a drilling programme, which is expected to commence in mid-2014. The first well of this programme, on Block 39, is expected to target the very material Dilolo prospect.

·     Drilling operations on the Taq Taq Deep exploration well were completed in March 2014 at a depth of 4,600m after the well had intersected gas bearing upper Triassic reservoirs. A testing programme on Jurassic and Triassic reservoirs is now in progress.

·     The Cap Juby well offshore Morocco confirmed the presence of heavy oil over a gross interval of 110 metres in an Upper Jurassic carbonate reservoir. Work is ongoing to evaluate the extent of moveable hydrocarbons and how any further assessment should be conducted.

·     The exploration well on the Hagar Qim prospect on the Area 4 licence offshore Malta is scheduled to spud in May.

FINANCE

·     2014 capital expenditure guidance remains at $550-600 million as the capital programme has been optimised to accommodate the Angola drilling activity.

·     Cash balances at 31 March 2014 stood at c.$600 million.

Future announcements

Genel Energy's 2014 Half Year Results will be announced on 5 August 2014.

-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 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.

 

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