Genel Confirms Production Guidance for 2013

Genel Energy confirmed in an interim management statement Monday that its 2013 guidance remains unchanged. The firm expects to produce between 45,000 and 55,000 barrels of oil per day (bopd) along with revenue of between $300 and $400 million.

Genel said that its new working-interest production for the first quarter of 2013 averaged 37,000 bopd. The firm said that two fields in Iraqi Kurdistan in which it has an interest, Taq Taq and Tawke, averaged 73,000 bopd and 18,000 bopd respectively, with volumes affected by the New Year national holiday and maintenance work at Tawke.

Genel said that production capacity at its key Taq Taq and Tawke assets continues to grow, with Taq Taq's gross production capacity currently at 120,000 bopd and Tawke gross capacity at 100,00 bopd. Genel is targeting 200,000 bopd at both fields by the end of 2014.

Genel began exports to Turkey by truck of Kurdish oil in January. In Monday's statement the firm said it expected volumes exported to rise to 15,000/20,000 bopd during the rest of the year.

Meanwhile, Genel also reported that it had made significant progress with infrastructure developments, with the Taq Taq-Khurmala pipeline now complete. The second phase of this pipeline, from Khurmala to the Fishkabur pump station on the border with Turkey is under construction and will have an initial capacity of 300,000 bopd. The firm expects this to be completed during the fourth quarter of this year.

Genel reported progress in developing and commercializing its Miran and Bina Bawi assets. The Miran West field development is progressing for both oil and gas, with an extended well test for oil at Miran West seeing production at around 3,000 bopd. Bina Bawi saw an extended well test flow oil at an initial capacity of 5,000 bopd.

Genel's exploration activities saw a new oil discovery at the Chia Surkh field, testing flow rates of up to 11,950 bopd. The first appraisal well has spud here. The firm also has an extensive well testing program underway at Tawke Deep over more than 6,500 feet of previously untested Jurassic and Triassic sections.

Genel plans four more high impact wells in Kurdistan during 2013, targeting prospective resources of 1.5 billion barrels of oil equivalent.

Meanwhile, in Africa Genel is in advanced negotiations to secure a rig with 10 slots. It plans a drilling programme to start in late 2013, including wells in Morocco and Malta. The firm also has a 2D seismic data acquisition program underway in Somaliland.

Genel Energy Chief Executive Tony Hayward commented in a company statement:

"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."

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Genel Confirms Production Guidance for 2013

Genel Energy confirmed in an interim management statement Monday that its 2013 guidance remains unchanged. The firm expects to produce between 45,000 and 55,000 barrels of oil per day (bopd) along with revenue of between $300 and $400 million.

Genel said that its new working-interest production for the first quarter of 2013 averaged 37,000 bopd. The firm said that two fields in Iraqi Kurdistan in which it has an interest, Taq Taq and Tawke, averaged 73,000 bopd and 18,000 bopd respectively, with volumes affected by the New Year national holiday and maintenance work at Tawke.

Genel said that production capacity at its key Taq Taq and Tawke assets continues to grow, with Taq Taq's gross production capacity currently at 120,000 bopd and Tawke gross capacity at 100,00 bopd. Genel is targeting 200,000 bopd at both fields by the end of 2014.

Genel began exports to Turkey by truck of Kurdish oil in January. In Monday's statement the firm said it expected volumes exported to rise to 15,000/20,000 bopd during the rest of the year.

Meanwhile, Genel also reported that it had made significant progress with infrastructure developments, with the Taq Taq-Khurmala pipeline now complete. The second phase of this pipeline, from Khurmala to the Fishkabur pump station on the border with Turkey is under construction and will have an initial capacity of 300,000 bopd. The firm expects this to be completed during the fourth quarter of this year.

Genel reported progress in developing and commercializing its Miran and Bina Bawi assets. The Miran West field development is progressing for both oil and gas, with an extended well test for oil at Miran West seeing production at around 3,000 bopd. Bina Bawi saw an extended well test flow oil at an initial capacity of 5,000 bopd.

Genel's exploration activities saw a new oil discovery at the Chia Surkh field, testing flow rates of up to 11,950 bopd. The first appraisal well has spud here. The firm also has an extensive well testing program underway at Tawke Deep over more than 6,500 feet of previously untested Jurassic and Triassic sections.

Genel plans four more high impact wells in Kurdistan during 2013, targeting prospective resources of 1.5 billion barrels of oil equivalent.

Meanwhile, in Africa Genel is in advanced negotiations to secure a rig with 10 slots. It plans a drilling programme to start in late 2013, including wells in Morocco and Malta. The firm also has a 2D seismic data acquisition program underway in Somaliland.

Genel Energy Chief Executive Tony Hayward commented in a company statement:

"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."

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Genel: Taq Taq Field Hits 109,000 Barrels per Day

Kurdistan-focused Genel Energy announced Friday that production from its onshore Taq Taq field hit a high Jan. 4 of 109,000 barrels of oil per day. The company added that during the first two weeks of January production from Taq Taq has averaged 89,000 bopd.

Genel, reporting an operational update, said that it expects to complete its current exploration program in the Kurdistan region of Iraq during the first half of 2013. This program comprises three high-impact wells that are targeting a gross un-risked resource of more than 750 million barrels of oil equivalent. Tawke Deep and Chia Surkh 10 are currently drilling on schedule with results expected by the end of the first quarter. A third well (Taq Taq Deep) will spud during the next couple of months.

Capital expenditure for 2013 is expected to be between $400 million and $500 million. The firm spent approximately $230 million in 2012, which was fully funded by cash generated from current operations in Kurdistan.

Genel said that its average net working interest production for 2012 was 44,500 bopd, compared with 42,000 bopd in 2011. The company said that it began reducing exports of oil in mid-November, switching sales of production back into Kurdistan's domestic market, in response to the uncertainty regarding the receipt of the second payment for historic exports owed from the Federal Government of Iraq.

Meanwhile, Genel started exporting crude oil from Taq Taq into Turkey by truck earlier this month.

Genel Chief Executive Tony Hayward commented in the statement:

"2012 saw a strong production performance and a materially expanded exploration portfolio which will provide us with significant opportunities in 2013, both in the Kurdistan Region of Iraq and Africa. We expect revenues to be ahead of previous guidance and all development and exploration activities in Kurdistan to be funded from cash flow generated locally in line with our stated strategy. We are today exporting oil to Turkey in accordance with the authority granted to us by the Kurdistan Regional Government and as the largest independent operator in Kurdistan, are well placed to take advantage of regional opportunities for a broader export market as the political situation continues to develop." 

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