Genel Energy Awaiting Approval on Chia Surkh Deal

Genel Energy is still awaiting government approval for its plan to increase its interest in the Chia Surkh block in the Kurdistan Region of Iraq from 20% to 80% and to become the operator of the field.

This morning (Thursday) the company issued the following update to the market:

On 16 January 2012, Genel Energy plc (“Genel Energy”) announced that it had entered into transactions with Forbes & Manhattan (Kurdistan) Inc. (a subsidiary of Longford Energy Inc.) (“F&M”) and Petoil Petroleum to increase Genel Energy’s interest in the Chia Surkh block in the Kurdistan Region of Iraq from 20 per cent to 80 per cent and to become Operator of that block (the “Transactions”).

The announcement confirmed that the Transactions are conditional on the receipt of various consents, approvals and assurances, including from the Kurdistan Regional Government. The application before the Kurdistan Regional Government Oil and Gas Council remains pending, and all parties continue to work with the Government to secure final approval for the Transactions.

Genel Energy will update the market in due course when it has greater visibility on timing for completion of the Transactions.

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