Genel Energy appoints new Chief Financial Officer

By John Lee.

Genel Energy has announced that Luke Clements (pictured) has been appointed Chief Financial Officer (CFO) with immediate effect.

Luke, who was previously Interim Chief Financial Officer, has been responsible for a broad range of financial, commercial, and treasury related activities at the Company.

Having joined the Company in 2011 to advise on the merger of Vallares Plc and Genel Enerji, he became Group Financial Controller in 2015. Prior to joining the Company, Luke spent seven years at KPMG, where he was head of department and advised multiple FTSE100 and FTSE350 companies across a range of sectors.

David McManus, Chair, said:

"Luke is the ideal person to continue delivering the financial platform that facilitates our strategy, a strategy he has been integral in building, as we seek to utilise our growing financial strength to add production and further bolster our progressive dividend.

"Genel's low-cost production generates significant cash flow, in turn supporting investment in growth and material shareholder returns, and we look forward to Luke playing a significant role as we continue to aim to create material value for shareholders."

(Source: Genel Energy)

The post Genel Energy appoints new Chief Financial Officer first appeared on Iraq Business News.

Genel Energy issues update on Trading and Ops

Genel Energy has issued the following trading and operations update ahead of the Company's Annual General Meeting ('AGM'), which is being held today:

Bill Higgs, Chief Executive of Genel, said:

"Our robust financial position continues to strengthen, supporting investment in our organic portfolio as well as our progressive dividend. Despite the result of Sarta-5, the well delivered useful data that we will incorporate together with the results of our next well, Sarta-6, into our forward plans for the field. As we look to add production and further bolster our progressive dividend and create value for stakeholders, we continue to review both organic and inorganic opportunities."

FINANCIAL PERFORMANCE

  • $95 million cash proceeds received in Q1 2022 from the Kurdistan Regional Government
  • Free cash flow of $43 million in Q1 2022
    • Margin of $30/bbl in Q1 2022 (2021: $24/bbl), with Brent averaging $102/bbl (2021: $71/bbl)
    • Capital expenditure of $35 million in Q1 2022, of which $19 million was spent at Tawke, and $12 million at Sarta
    • Of the $35 million total invoiced for December 2021 oil sales, $17 million was received in Q1 2022, with $18 million of invoices being received after period end
  • Cash of $356 million at 31 March 2022 ($314 million at 31 December 2021)
  • Net cash of $86 million at 31 March 2022 ($44 million at 31 December 2021)

PRODUCTION

  • Net production of 30,520 bopd in Q1 2022, in line with guidance
  • Zero lost time injuries or Tier 1 losses of primary containment in Q1 2022
  • Tawke PSC (25% working interest)
    • Gross production of 106,470 bopd in Q1 2022, 26,620 net to Genel, of which Peshkabir contributed 64,500 bopd and Tawke 41,970 bopd
    • A high level of activity was maintained at Tawke in Q1 2022, with five wells spud across the Tawke and Peshkabir fields, with a fourth drilling rig set to be added
    • The Peshkabir-Tawke gas project has captured 12 billion cubic feet of otherwise flared gas, equivalent to 766,000 tonnes of CO2 equivalent, since start up in mid-2020 through the first quarter of 2022. Phase 2 is a $25 million expansion underway at the Tawke field to capture breakthrough gas, set to start in the fourth quarter of 2022. The operator, DNO, is also debottlenecking the Peshkabir gas plant originally designed for 50,000 bopd to handle larger volumes of associated gas from higher field production, which is now averaging 65,000 bopd
  • Sarta (30% working interest and operator)
    • Gross production of 5,590 bopd in Q1, 1,670 bopd net to Genel
    • Sarta-1D was brought onto production on 8 March from the Mus and Upper Adaiyah reservoirs, the same zone on production at Sarta-2. On well test at Sarta-1D the Lower Adaiyah produced at low oil rates with a high water cut while oil was discovered in the Butmah, achieving flow rates of over 1500 bopd, but again with a high water cut. Since coming onstream, production from the Mus and Upper Adaiyah reservoirs at Sarta-1D has been choked back in order to manage pressure decline between the two adjacent take points of Sarta-1D and Sarta-2, and water cut at Sarta-1D
    • Total field production has averaged c.6,150 bopd in May, as we continue to work through a programme to optimise production from the three producing wells
    • Sarta-5 testing completed on 9 May and the well is now suspended. As previously stated, the presence of oil associated with both the primary and secondary Jurassic reservoir intervals, 12 km southeast of the Sarta pilot EPF, will be subject to further investigation and integration into the joint venture's understanding of the Sarta field and future planning
    • Test results from the Sarta-6 well, c.6 km to the west of the pilot EPF, are expected in Q3
  • Taq Taq PSC (44% working interest and joint operator)
    • Gross production of 5,070 bopd, 2,230 bopd net to Genel
    • As the margins at Taq Taq have increased, planning is underway for the resumption of drilling, with a well expected to spud around the end of 2022

PRE-PRODUCTION

  • Qara Dagh (40% working interest and operator)
    • The evaluation of the QD-2 well and its results is underway, with a decision on licence next steps to be taken later this year
  • Somaliland (51% working interest and operator)
    • Following the successful farm-out in December 2021, preparation is under way for the drilling of a well on the highly prospective SL10B13 block around the end of 2023
  • Morocco (75% working interest and operator)
    • Petroleum Agreement and Association Contract expected to be signed with ONHYM in Q2 2022, with a farm-out programme scheduled to begin later this year

ESG

  • Genel's 2021 Sustainability Report has been issued today, detailing our environmental performance and the positive impact that we strive to have on the communities in which we operate. 2021 highlights include:
    • 11 social investment and community projects funded and delivered in 2021
    • Zero waste to landfill from operations at Sarta, with 92% recycled
    • Renewable energy feasibility study progressing at Sarta
  • Genel is marking twenty years of operating in the KRI with its Genel20 programme, increasing the scope of our social activities, including a new education initiative set to be launched next week at an event in Dohuk

2022 OUTLOOK AND GUIDANCE

  • Guidance reiterated, with production for 2022 at around the same level as the 2021 average
  • The Board is recommending the approval of a final dividend of 12¢ per share (2021: 10¢ per share) at today's AGM, a distribution of $33.5 million, as we continue to fulfil our aim of paying a progressive dividend

(Source: Genel Energy)

The post Genel Energy issues update on Trading and Ops first appeared on Iraq Business News.

Shares in Genel Energy slump on Sarta Result

By John Lee.

Shares in Genel Energy were trading down 7 percent on Tuesday morning after the company announced disappointing results at the Sarta-5 appraisal well:

"Genel Energy plc ('Genel' or 'the Company') announces the following update on the Sarta PSC (30% working interest and operator).

"Testing of the Sarta-5 appraisal well has been completed. While oil was recovered to surface from a number of intervals, notably c.800 bbls of light oil from the Najmah formation, stable and sustained commercial flow of oil was not achieved from the primary reservoir objectives of the Mus and Adaiyah formations nor the secondary Lower Sargalu or Najmah formations. None of the intervals tested were able to support sustained flow of reservoir fluids, indicating that the reservoirs at this location are tight. This was identified as a critical pre-drill risk of this appraisal well.

"The presence of oil associated with both the primary and secondary Jurassic reservoir intervals, 12 km southeast of the Sarta pilot EPF, will now be subject to further investigation and integration into the joint venture's understanding of the Sarta field and future planning. The well will now be suspended according to KRI regulations.

"The Sarta appraisal programme continues at Sarta-6, c.6 km to the west of the pilot EPF, with test results expected in Q3."

(Source: Genel Energy)

The post Shares in Genel Energy slump on Sarta Result first appeared on Iraq Business News.

Nazli Williams steps down as Director of Genel Energy

By John Lee.

Genel Energy has announced that Nazli K. Williams has tendered her resignation as a Non-Executive Director of the company with effect from 13 April 2022.

David McManus, Chairman of Genel, said:

"Nazli has been a Director of Genel since the merger with Vallares in 2011. She has provided both valuable contributions and important continuity to Board considerations during her time on the Board.

"I thank her for her commitment to the company over the last decade and wish her the very best for her future endeavours."

(Source: Genel Energy)

The post Nazli Williams steps down as Director of Genel Energy first appeared on Iraq Business News.

Genel Energy outlines Payments to Govts for 2021

By John Lee.

Genel Energy has just published details of its payments to governments for the year 2021:

Introduction and basis for preparation

This report sets out details of the payments made to governments by Genel Energy plc and its subsidiary undertakings ('Genel') for the year ended 31 December 2021 as required under the Disclosure and Transparency Rules of the UK Financial Conduct Authority (the 'DTRs') and in accordance with our interpretation of the Industry Guidance issued for the UK's Report on Payments to Governments Regulations 2014, as amended in December 2015 ('the Regulations'). The DTRs require companies in the UK and operating in the extractives sector to publically disclose payments made to governments in the countries where they undertake exploration, prospection, development and extraction of oil and natural gas deposits or other materials.

Governments

All of the payments made in relation to licences in the Kurdistan Region of Iraq ('KRI') have been made to the Ministry of Natural Resources of the Kurdistan Regional Government ('KRG').

Production entitlements

Production entitlements are the host government's share of production during the reporting period from projects operated by Genel. Production entitlements from projects that are not operated by Genel are not covered by this report. The figures reported have been produced on an entitlement basis rather than on a liftings basis. Production entitlements are paid in-kind and the monetary value disclosed is derived from management's calculation of revenue from the field.

Royalties

Royalties represent royalties paid in-kind to governments during the year for the extraction of oil. The terms of the Royalties are described within our Production Sharing Contracts and can vary from project to project. Royalties have been calculated on the same barrels of oil equivalent basis as production entitlements.

Materiality threshold

Total payments below £86,000 made to a government are excluded from this report as permitted under the Regulations.

Payments to governments - 2021

Country/Licence KRI Total (1) Taq Taq (2)
Production entitlement (bbls) 1,234,564.87 1,234,564.87
Royalties in kind (bbls) 216,930.95 216,930.95
Total (bbls) 1,451,495.82 1,451,495.82
Value of production entitlements ($ million) 78.52 78.52
Value of royalties ($ million) 13.74 13.74
Capacity building payments ($ million) (3) 1.25 1.25
Total ($ million) 93.51 93.51
  1. Under the lifting arrangements implemented by the KRG, the KRG takes title to crude at the wellhead and then transports it to Ceyhan in Turkey by pipeline. The crude is then sold by the KRG into the international market. All proceeds of sale are received by or on behalf of the KRG, out of which the KRG then makes payment for cost and profit oil in accordance with the PSC to Genel, in exchange for the crude delivered to the KRG. Under these arrangements, payments are in fact made by or on behalf of the KRG to Genel, rather than by Genel to the KRG. For the purposes of the reporting requirements under the Regulations however, we are required to characterise the value of the KRG's entitlement under the PSC (for which they receive payment directly from the market) as a payment made to the KRG. Therefore, estimated value in $millions is not paid to the KRG, and is calculated to meeting the reporting requirements under the regulations
  2. The amount reported for Taq Taq, is the gross payment made to the KRI by the operating company (TTOPCO), Genel's share of these payments is equal to 55% (with the exception of capacity building payments)
  3. Capacity building payments reported are payments made by Genel directly to the KRI in cash as required by the PSC.

(Source: Genel Energy)

The post Genel Energy outlines Payments to Govts for 2021 first appeared on Iraq Business News.

Genel Results: $400m Impairment, but Increased Divi

Genel Energy has announced its audited results for the year ended 31 December 2021.

Bill Higgs, Chief Executive of Genel, said:

"Our strategy and business model remain focused on cash generation. Prior to the invasion of Ukraine and the associated increase in the oil price, we were well positioned for our free cash flow to materially increase from $86 million in 2021 to around a quarter of a billion dollars this year. At the prevailing oil price, and given that there seems no quick resolution to the appalling events unfolding, this figure is expected to increase significantly.

"The forecast extent of our cash generation, from an existing position of financial strength, provides the potential to deliver significant growth and further returns to shareholders. Our priority is investment in production to maximise the value of our existing assets, and continuing to develop Sarta. Given the strong outlook and ongoing cash generation, we have increased our final dividend by 20%, continuing to fulfil our aim of paying a material and progressive dividend."

Results summary ($ million unless stated)

2021 2020
Average Brent oil price ($/bbl) 71 42
Production (bopd, working interest)  31,710  31,980
Revenue  334.9  159.7
EBITDAX1  275.1  114.6
  Depreciation and amortisation  (172.8)  (153.7)
  Exploration expense - (2.2)
  Impairment/write off of oil and gas assets (403.2) (286.3)
  Reversal of impairment / (impairment) of receivables 24.1 (36.9)
Operating loss (276.8) (364.5)
Cash flow from operating activities 228.1 129.4
Capital expenditure 163.7 109.7
Free cash flow2 85.9 (4.4)
Cash 313.7 354.5
Cash after settlement of bonds3 313.7 273.5
Total debt after settlement of bonds3 280.0 280.0
Net cash4 43.9 6.2
Basic LPS (¢ per share) (111.4) (152.0)
Underlying EPS / (LPS) (¢ per share)5 25.8 (34.2)
Dividends declared relating to financial year (¢ per share) 18 15
  1. EBITDAX is operating loss adjusted for the add back of depreciation and amortisation ($172.8 million), write-off of oil and gas assets ($403.2 million) and reversal of impairment on receivables ($24.1 million)
  2. Free cash flow is reconciled on page 12
  3. In December 2020, the Company gave notice to call the residual nominal $77.1 million of its 2022 bonds and thereby reduce its gross debt balance to $280.0 million. Under the terms of the bond settlement this took place on 8 January 2021 and reduced cash by $81.0 million
  4. Reported cash less IFRS debt (page 13)
  5. Underlying EPS / (LPS) is loss and total comprehensive income / (expense) adjusted for the add back of impairment / write-off of intangible assets, impairment of property, plant and equipment and reversal of impairment / (impairment) of receivables divided by weighted average number of ordinary shares

Highlights

  • Net production averaged 31,710 bopd in 2021 (2020: 31,980 bopd)
  • $281 million of cash proceeds were received from the KRG in 2021 (2020: $173 million)
  • Capital expenditure of $164 million (2020: $110 million), with c.$45 million spent at the Tawke PSC and c.$105 million at Sarta and Qara Dagh
  • Free cash flow of $86 million in 2021, pre dividend payments (2020: $4 million free cash outflow)
  • Following the termination of the Bina Bawi and Miran PSCs by Genel on 10 December 2021, there has been a required accounting write off of $403 million arising from derecognition of associated assets and liabilities. Genel has consequently taken steps to bring a claim for substantial compensation from the KRG at a private London seated international arbitration
  • Dividends paid in 2021 of 16¢ per share (2020: 15¢ per share), a total distribution of $44 million
  • Cash of $314 million at 31 December 2021, net cash of $44 million ($6 million at 31 December 2020)
  • Carbon intensity of 16 kgCO2e/bbl for scope 1 and 2 emissions in 2021, significantly below the global oil and gas industry average of 20 kgCO2e/boe

Outlook

  • Production guidance for 2022 maintained at around the same level as the 2021 average
    • Sarta-1D entered production on 8 March, at an initial rate of c.2,500 bopd
  • Genel expects free cash flow of over $250 million in 2022, pre dividend payments, at a Brent oil price of $90/bbl
    • An increase or decrease in Brent of $10/bbl impacts annual cash flow by c.$50 million
    • Cash flow in 2022 benefits from 10 Tawke override payments, with the last one set to be paid relating to July 2022 production
  • 2022 capital expenditure guidance maintained as between $140 million and $180 million
  • 2022 marks 20 years since Genel signed its first PSC in the KRI. We will be marking the year by increasing the scope of our social investments under the Genel20 banner, in line with UN Sustainable Development Goals
  • Due to Genel's robust financial position and confidence in the Company's future prospects, the Board is recommending a final dividend of 12¢ per share (2021: 10¢ per share), a distribution of $33.5 million. This would bring ordinary dividends declared for 2021 as part of our sustainable and progressive dividend programme to 18¢ per share (15¢ per share relating to 2020 financial year), a total distribution of $50 million
    • Should the current oil price strength persist, Genel will consider incremental returns of cash to shareholders in addition to our commitment to a material and progressive dividend

(Source: Genel Energy)

The post Genel Results: $400m Impairment, but Increased Divi first appeared on Iraq Business News.

Genel Energy Updates its Oil Reserves

By John Lee.

Genel Energy plc has updated its oil reserves across its portfolio.

Net oil Reserves (MMbbls) 1P 2P 3P
31 December 2020 69.4 117.2 177.2
Production (11.6) (11.6) (11.6)
Technical revisions 4.8 (1.4) (28.9)
31 December 2021 62.6 104.2 136.6

International petroleum consultants DeGolyer and MacNaughton, working on behalf of the operator DNO, assess that Tawke licence (Genel 25% working interest) gross year-end 2021 2P reserves stood at 357 MMbbls, compared to 394 MMbbls at year-end 2020, after adjusting for production of 40 MMbbls and an upward technical revision of 3 MMbbls.

Pending further analysis of the performance of the Enhanced Oil Recovery project, Genel continues to hold 23 MMbbls of those 2P gross reserves in 2C resources.

At Taq Taq (44% working interest, joint operator), 2P gross reserves stood at 26 MMbbls at year-end 2021 (33 MMbbls at end-2020), following a downward technical revision of 5 MMbbls and production of 2 MMbbls. McDaniel & Associates carried out the independent assessment of the Taq Taq licence.

At Sarta (30% working interest, operator) Genel's gross 2P reserve estimate relating to Phase 1A of the Sarta development remains unchanged, less production, at year-end 2021 at 32 MMbbls (34 MMbbls at the end of 2020), following production of 2 MMbbls.

Flow testing of Sarta-1D is currently ongoing, and the appraisal results of Sarta-5 and Sarta-6 will be incorporated into our assessment of the reserves of Sarta at the appropriate time.

(Source: Genel Energy)

The post Genel Energy Updates its Oil Reserves first appeared on Iraq Business News.

Genel Energy Rise on Trading Update

Shares in Genel Energy rose by nearly 5 percent on Tuesday morning after the company issued the following trading and operations update in advance of the Company's full-year 2021 results, which are scheduled for release on 15 March 2022. The information contained herein has not been audited and may be subject to further review.

Bill Higgs, Chief Executive of Genel, said:

"In 2021 we generated significant free cash flow of $86 million, and in 2022 we are set to build on this as the strength of the oil price and our positive outlook means that free cash flow is expected to more than double. Our focus in 2022 is on growing the business and supporting our progressive dividend long-term.

"We aim to increase cash flow through the progression of our asset development plans and the addition of income streams. Our priority is the derisking and commercialisation of Sarta, while the successful farm-out on our Somaliland licence opens the way to drill an exploration well on this exciting opportunity."

2022 OUTLOOK AND GUIDANCE

  • Production in 2022 is expected to be around the same level as 2021
  • Genel expects to generate free cash flow of up to $200 million in 2022, pre dividend payments, at a Brent oil price of $75/bbl
    • An increase or decrease in Brent of $10/bbl impacts annual cash by $50 million
    • Under the terms of the Receivable Settlement Agreement signed in August 2017, the last override payment will be made relating to Tawke PSC production in July 2022. Given payments are received three months in arrears from the Kurdistan Regional Government ('KRG'), 10 override payments are expected in 2022
    • 2022 capital expenditure is expected to be between $140 million and $180 million, with key asset spending including:
      • c.$75 million expenditure forecast at the Tawke PSC, an increase of c.$25 million compared to 2021 as drilling increases at the Tawke field
      • c.$45-80 million expenditure forecast at Sarta, with higher spend the result of appraisal success
      • c.$10-20 million expenditure forecast at Taq Taq
      • Work is underway on planning a well in Somaliland, with expenditure in 2022 expected to be under $5 million
    • Operating costs expected to be c.$50 million (2021: $44 million), equating to under $5/bbl, retaining our advantageous low operating cost position
  • Following the termination of the Bina Bawi and Miran PSCs by Genel on 10 December 2021, Genel will be claiming substantial compensation from the KRG. Genel's claims will be brought in a private London seated international arbitration
  • Genel remains committed to paying a material and progressive dividend, as we look to offer a compelling mix of value-accretive growth and shareholder returns
  • Genel continues to invest in the host communities in which we operate. 2022 represents twenty years of operations in the Kurdistan Region of Iraq, which we will commemorate through the Genel20 programme, launching significant new social activities throughout the year, aligned with UN Sustainable Development Goals

2021 FINANCIAL PERFORMANCE

  • $281 million of cash proceeds were received from the KRG in 2021 (2020: $173 million)
  • Capital expenditure of $165 million (2020: $109 million), with c.$45 million spent at the Tawke PSC and c.$110 million at Sarta and Qara Dagh
  • Free cash flow of $86 million in 2021, pre dividend payments (2020: $5 million free cash outflow), comparison impacted by:
    • Higher oil price of $71/bbl in 2021, compared to $42/bbl in 2020
    • 10 entitlement payments received in 2021, compared to 12 in 2020, following industry-wide reversion to payments three months in arrears by the KRG
    • Receivable recovery payments of $35 million received in 2021, with the resumption of Tawke override payments contributing a further $72 million ($23 million in override payments received in 2020)
  • Dividends paid in 2021 of 16¢ per share (2020: 15¢ per share), a total distribution of c.$45 million
  • Cash of $314 million at 31 December 2021, net cash of $44 million ($10 million at 31 December 2020)

2021 OPERATING PERFORMANCE

  • Genel strives for safe operations with zero lost time injuries ('LTI') and zero tier one loss of primary containment events at Genel and TTOPCO operations. One LTI was reported in 2021 at Sarta-5 drilling operations and all corrective actions have been implemented
    • 1.2 million work hours subsequently completed across our operations without an LTI
  • Net production averaged 31,710 bopd in 2021, with net production in Q4 averaging 30,843 bopd
    • Production cost of c.$4/bbl, with margin per barrel of $24/bbl
  • Production by field was as follows:
(bopd) Gross production

2021

Net production

2021

Net production

2020

Tawke 108,710 27,180 27,570
Taq Taq 5,940 2,610 4,250
Sarta 6,400 1,920 160
Total 121,060 31,710 31,980
  • Genel expects our confirmed 2021 carbon intensity to be c.15 kgCO2e/bbl for scope 1 and 2 emissions, significantly below the global oil and gas industry average of 20 kgCO2e/boe
    • Expected carbon intensity in 2021 has increased from 13kg CO2e/bbl in 2020 due to full year production at Sarta where associated gas is currently being flared. The gas management project to cease routine flaring is underway

PRODUCTION ASSETS

  • Tawke PSC (25% working interest)
    • Gross production at the Tawke PSC averaged 108,710 bopd in 2021 (110,280 bopd in 2020)
    • Drilling activity is set to ramp up in 2022
  • Sarta (30% working interest and operator)
    • The results of early production from the Sarta pilot continue to help shape the view of full field development
    • Gross production averaged 6,400 bopd in 2021, with just over 2.5 million barrels having been produced from start up in late November 2020 to year end 2021
    • Drilling and completion operations at Sarta-1D concluded in November 2021, the Viking I-21 Rig was subsequently mobilised to Sarta-4 to workover the legacy exploration well for use as a produced water disposal well
    • Rigless well testing at Sarta-1D is now underway, with results expected early this quarter. This will allow for the performance of the thicker and more volumetrically significant Adaiyah reservoir to be fully evaluated. Oil produced from Sarta-1D will be delivered to the early production facility via a short c.2 km flowline that was installed in Q4 2021 removing any lag time between well testing results and monetisation of the resource
    • The Sarta-5 and Sarta-6 step out wells are designed to appraise the field away from the pilot production facility and will be key in resolving the current uncertainty over the size and shape of the Sarta field
    • Drilling and completion operations concluded at Sarta-5 at the end of 2021, and the Parker 265 Rig is currently mobilising to the Sarta 6 location with spud expected in the coming weeks
    • Rigless well-testing operations will be conducted at Sarta-5 in Q1 2022
    • As of 1 January 2022, Genel became PSC operator of Sarta in line with the agreement with Chevron
    • Genel has embarked on a renewable energy appraisal programme at Sarta, with the initial phase of this study assessing wind, solar and hydro options to power the early production facility. The study began in Q3 2021 and will be completed in 2022, as Genel aims to reduce GHG emissions from our facilities
  • Taq Taq PSC (44% working interest and joint operator)
    • Gross production at Taq Taq averaged 5,940 bopd in 2021, following the ongoing suspension of drilling activity
    • Activity at Taq Taq continues to be focused on optimising cash flow, and drilling may resume in H2 2022

PRE-PRODUCTION ASSETS

  • Qara Dagh (40% working interest and operator)
    • As announced on 4 January, drilling operations on the QD-2 well have been suspended and the well temporarily abandoned
    • The evaluation by licence partners Genel and Chevron of the QD-2 well and its results is now underway, and this will inform next steps on the licence
  • Somaliland (51% working interest and operator)
    • Following the signing of a farm-out agreement with OPIC Somaliland Corporation relating to the SL10B13 block, field partners are now working together to plan exploration drilling, with an aim of drilling a well in 2023
  • Morocco (75% working interest and operator)
    • A farm-out campaign continues to be planned relating to the Lagzira block offshore Morocco (75% working interest and operator), with the aim of bringing a partner onto the licence prior to considering further commitments

(Source: Genel Energy)

The post Genel Energy Rise on Trading Update first appeared on Iraq Business News.

CFO of Genel Energy to Step Down

Genel Energy announced on Tuesday that Esa Ikaheimonen (pictured), Chief Financial Officer, has advised the Board of his intention to leave the company on 16 March 2022, following the announcement of the Company's 2021 financial results the day before.

In a statement, the company said that a search for a suitable replacement is ongoing and an announcement will be made in due course.

Bill Higgs, Chief Executive of Genel, said:

"Our financial results will be a testament to Esa's time at Genel, as they will show a Company in a strong financial position, with a resilient and proven business model and the flexibility to utilise the balance sheet to grow the Company. On behalf of everyone at Genel I would like to wish Esa all the best in his future endeavours."

Esa Ikaheimonen, Chief Financial Officer of Genel, said:

"Genel has strong leadership and finance teams, a robust financial position, and a lot to look forward to, and I wish the Company every success for the future."

(Source: Genel Energy)

The post CFO of Genel Energy to Step Down first appeared on Iraq Business News.

Genel Suspends Drilling Ops on QD-2 well at Qara Dagh

Genel Energy has announced that drilling operations on the QD-2 well at Qara Dagh (40% working interest and operator) have been suspended.

As previously stated, the well had been side-tracked in response to encountering more complex geology above the target reservoir than expected.

Two further side-tracks have been initiated, but the licence partners have now concluded that it is impractical to continue the drilling operations from this wellbore in an attempt to reach the primary objective because of insurmountable technical problems. The decision has therefore been taken to suspend QD-2, with the minimum work obligation satisfied.

Licence partners Genel and Chevron will conduct a thorough evaluation of the QD-2 well and its results in 2022 to inform next steps on the licence.

Bill Higgs, Chief Executive of Genel, said:

"This has been a very challenging operation, and the decision to suspend drilling at this stage is prudent. It is of course not the outcome that we wanted, but the geological case for Qara Dagh remains intact and attractive.

"We will work with Chevron to ascertain the best way forward on the licence. In the meantime we will continue working with the community on our social initiatives, as we retain our commitment to the region."

(Source: Genel Energy)

The post Genel Suspends Drilling Ops on QD-2 well at Qara Dagh first appeared on Iraq Business News.