Genel Takes Control of Miran Block

By John Lee.

Genel Energy has announced that it will take an extra 49 percent of the Miran Block in Iraqi Kurdistan as repayment for a $294 million loan issued in August to Heritage Oil.

The company previously acquired a 26 percent working interest in the Miran Block from Heritage on 23 August 2012, taking its current holding in the block to 51 per cent. Following the Exchange Repayment and subsequent acquisition, Genel Energy will own 100 per cent of the Miran Block (75 per cent working interest post KRG back-in right) and will be the sole operator.

Tony Buckingham, Chief Executive Officer of Heritage Oil, commented:

The divestment of our remaining 49% interest in Miran will allow Heritage to monetise the asset at an attractive valuation and the total proceeds will have funded a significant part of the completed acquisition of OML 30 in Nigeria. Completion of these transactions will provide Heritage with a balanced portfolio of assets generating cash flow from production which will assist with work programmes on high impact exploration whilst allowing the Company to continue considering further opportunities.

Shares in Heritage closed the day down 1.7 percent, with Genel down 0.3 percent.

(Sources: Genel Energy, Heritage Oil)

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