7 July 2016
Genel Energy plc
Genel Energy plc ('Genel’ or ‘the Company’) announces that the TT-27x side-track well has been successfully drilled and completed in the Cretaceous Shiranish reservoir at the Taq Taq field (Genel 44% working interest, joint operator).
The TT-27x side-track was the first well in the 2016 Taq Taq work programme, which aims to more evenly distribute the production rate over the wider field.
The well, which is currently in the latter stages of the post-drill clean-up phase, is flowing at c.3,000 bopd. The well continues to clean-up and is within the anticipated production rate of 1,500-5,000 bopd.
The VT-03 rig has now been moved to drill the TT-07z well, a side-track of the TT-07 well, which is set to appraise the southern flank of the field. If successful, this well will also aid the wider reservoir management effort and increase production from the flank of the field. The TT-07z well is expected to take c.60 days to drill.
Future Taq Taq development activity will continue to evolve based on reservoir performance, with an overall strategy of drilling development wells to offset field declines. The current outlook for 2016 incorporates the drilling of three side-tracks from existing development wells (inclusive of TT-27x and TT-07z).
Key technical indications from Taq Taq year to date are in line with those underlying the ultimately recoverable reserves described in the Competent Person’s Report issued on 25 April 2016. Full year 2016 data from Taq Taq will be incorporated into a new Competent Person’s Report which the Company intends to issue in Q1 2017.
H1 2016 production from Taq Taq averaged c.69,000 bopd. Current production at Taq Taq (including the initial impact of TT-27x and ongoing reservoir management) is c.62,000 bopd, in line with the average production rate through May (c.63,000 bopd) and June 2016 (c.63,000 bopd). H1 2016 production from Tawke averaged c.104,000 bopd with the field currently producing c.120,000 bopd.
H1 2016 production from Taq Taq and Tawke, net to Genel’s working interest, averaged c.56,000 bopd. Production in H1 2016 was impacted by the 23 day shutdown of the Kurdistan Region of Iraq (‘KRI’)-Ceyhan export pipeline in February and March. Excluding this pipeline downtime implies an approximate adjusted H1 2016 average production rate net to Genel of c.60,000 bopd. Downtime in the KRI-Ceyhan export pipeline system has historically not been included when setting Company production guidance.
Based on actual H1 2016 production of c.56,000 bopd, planned development activity at Taq Taq and the outlook for Tawke as stated by the operator DNO ASA on 4 May 2016, the Company now expects full year 2016 production of 53-60,000 bopd (against previous guidance of 60-70,000 bopd).
For further information, please contact:
| Genel Energy
Phil Corbett, Head of Investor Relations
Andrew Benbow, Head of Public Relations
|+44 20 7659 5100|
| Vigo Communications
|+44 20 7830 9708|
This announcement contains inside information
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 offices in Ankara and Erbil, is one of the largest London-listed independent oil producers, and is the largest holder of reserves and resources in the Kurdistan Region of Iraq. Through its Miran and Bina Bawi gas fields, the Company is set to be a cornerstone provider of gas to Turkey under the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue further growth opportunities within the Middle East and Africa. For further information, please refer to www.genelenergy.com.