Genel Energy Says Production Increases, Operations In Iraq Are Safe

Thu, 3rd Jul 2014 – LONDON (Alliance News) – Genel Energy PLC Thursday said its net working-interest production has jumped by 50% in its first half and its operations in the Kurdistan Region of Iraq remain safe and secure despite the ongoing conflict.

The oil and gas exploration and production company said production attributable to Genel averaged 63,000 barrels of oil equivalent per day in the six months ended June 30, a 50% increase on its 42,000 rate in the same period the previous year.

The company said production increases resulted from continuing development at the Taq Taq and Tawke Fields in the Kurdistan region of Iraq, in which the company has interests.

The Taq Taq site averaged 92,000 barrels of oil per day during the half year, with 113,000 barrels per day during June, while the Tawke field averaged 84,000 barrels of oil per day in the half, with 116,000 barrels per day in June. Genel noted that its net working interest production averaged a significantly higher rate of 84,000 barrels per day in June, as the fields ramped up and exports began to flow through a newly opened pipeline into Turkey.

Despite this, the company retained its 2014 attributable production guidance of 60,000 to 70,000 barrels of oil per day on average and maintained its revenue guidance of USD500 to USD600 million for the year. Genel said its operations in the northern Kurdistan region of Iraq remain safe and secure as the rest of the country has descended into near civil war.

Iraq is facing a crisis as insurgents from a group called the Islamic State in Iraq and the Levant have taken control of the major Iraqi cities of Mosul and Tikrit and are in fierce combat with the Iraqi army. Genel added that its 2014 capital expenditure guidance has also been maintained at USD550 to USD600 million and its cash balances at the end of the half are roughly USD940 million.The company also said its recent exploration operations have struggled, as its Taq-Taq-22 well found only minor non-commercial rates of oil and gas, while its Hagar-Qim-1 well off the coast of Malta found no indications of hydrocarbons before being plugged and abandoned.

Genel shares were down 0.4% to 1,019.00 pence on Thursday.

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