Tag Archive | "Miran"

Genel Releases Full Year Results


Genel Energy has announced its preliminary audited results for the year ended 31 December 2013:

Results summary

  • KRI export pipeline infrastructure complete and in the commissioning phase. Volumes of KRI oil in storage at Ceyhan continue to grow
  • Turkey-KRG Gas Sales Agreement a significant milestone in the commercialisation of Miran and Bina Bawi gas fields
  • 100% success rate on KRI exploration – Chia Surkh, Ber Bahr and Tawke Deep discoveries
  • Successful appraisal drilling at Bina Bawi increased mean contingent resources by 70%
  • Proven and probable reserves (2P) increased to 453 mmboe (2012: 445 mmboe), representing a reserve replacement ratio of 147%
  • Total working interest reserves and unrisked resources increased to 5.9 bnboe (2012: 5.4 bnboe)

ScreenHunter_395 Mar. 06 17.31

Exploration update

  •  JM-1 well on the Cap Juby prospect offshore Morocco confirms the presence of oil in the Upper Jurassic, as originally tested by the 1968 MO-2 well, some 2km from the JM-1 location. The well continues to drill ahead to the primary Middle Jurassic target
  • Taq Taq Deep well drilled to 4,600 metres, with around 300 metres of gas and condensate shows recorded in the Jurassic

Outlook

  • 2014 production guidance maintained: average net working interest production expected to be 60-70,000 boepd, significant growth of 50% at the midpoint of the range
  • Upgrades at both Taq Taq and Tawke on track to deliver processing capacity of 200,000 bopd by the end of 2014
  • Fully funded drilling campaign ongoing, with five high-impact wells in 2014 targeting 1.2 bnboe gross unrisked prospective resource
  • Significant value creation opportunity through domestic sales, early domestic gas monetisation with first production at Dohuk in late Q1 2014
  • Gas Sales Offtake Agreements with KRG for Miran and Bina Bawi expected to be signed in the second half of 2014

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Genel Announces Declaration of Commerciality for Miran


By John Lee.

Genel Energy has announced that a Declaration of Commerciality (“DoC”) for the Miran field has been approved by the Ministry of Natural Resources of the Kurdistan Regional Government (“KRG”). Genel currently holds a 100% working interest and is operator of the Miran licence. The KRG has the right to back in for a 25% working interest following DoC.

The Miran field was discovered in 2009 and an assessment by RPS Energy has assigned gross mean contingent resources of 3.5Tcf of gas/95mmbbls of oil and condensate to the Miran West structure. Further upside remains in the Miran East and Miran Deep prospects, with an exploration well planned on the latter in 2014. In total, Genel estimates that the Miran block contains c.8Tcf of gross recoverable contingent and unrisked prospective resources.

Following Declaration of Commerciality, the Development Period will commence on 5 September 2013, after which the Contractor will receive its share of revenues according to the PSC. An Early Production Facility for Miran oil was commissioned in August 2013 with the first well brought on-stream at c.2,000bopd. Work continues with the KRG to establish a Gas Commercialisation Plan, while Genel continues to expect the signing of a final Gas Export Agreement to Turkey by end-2013.

Commenting today, Charles Proctor (pictured), Head of Business Development for Genel, said:

The Miran Declaration of Commerciality represents an important milestone in the development of this major resource. We now look forward to continuing our work with the KRG to implement the Gas Commercialisation Plan and progress Miran towards project sanction.

“Our KRI gas business has the potential to supply a significant portion of Turkish demand growth, as well as having a transformational impact on Genel as our material resource base transitions closer to reserves.

(Source: Genel Energy)

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Genel Completes Acquisition of Miran Block


By John Lee.

Genel Energy has announced that closing has taken place on its acquisition of the remaining 49 per cent participating interest in the Miran exploration block in the Kurdistan Region of Iraq.

On 12 November 2012, Genel Energy announced that Heritage Oil issued the Exchange Repayment Notice signifying its intention to repay the $294 million loan made by Genel Energy to Heritage in August 2012 through the transfer of Heritage’s remaining 49 per cent participating interest. The transfer was subject to the approval of Heritage’s shareholders in a general meeting and, among other customary closing conditions, receipt of relevant approvals being granted by the Regional Council for the Oil and Gas Affairs of Kurdistan.

Following closing and formal approval of the transfer by the Regional Council, Genel Energy now owns 100 per cent participating interest in the Miran Block (75 per cent working interest post KRG back-in right) and has become the sole operator.

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

We are delighted to have received final approval for the disposal which means we have not only monetised the asset at an attractive valuation but have also used the proceeds to fund a significant part of our entry into a new region through the recent acquisition of a major interest in OML 30, Nigeria. This brings the total disposal proceeds generated by Heritage from asset sales to over $2 billion.

(Sources: Genel Energy, Heritage Oil)

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Heritage Updates on Kurdistan Operations


Shares in Heritage Oil closed down 1.9 percent on Thursday, following the company’s interim management statement.

The companay gave the following update on its operations in Iraqi Kurdistan:

Following the Initial Sale, HEME currently holds a 49% interest in the Miran Block and continues to act as operator.

Miran West

Initial work-over operations to prepare the Miran West-1 well for completion took place during September 2012. It is anticipated that the extended well test will begin in December 2012 and will last for a maximum period of six months. The resulting planned production of 3,000 to 5,000 barrels of oil gross per day will be sold into the local market in Kurdistan.

Miran East

The Miran East-1 exploration well is the first well to be drilled on the Eastern structure, which is contiguous with the large hydrocarbon-bearing Western structure. The well commenced drilling in March 2012, targeting exploration potential within the Cretaceous and Jurassic intervals. As at 14 November 2012, the well has reached a depth of 4,850 metres and evaluation of the well is ongoing. The Upper Cretaceous reservoir interval has been shown to be in pressure communication with the Western structure and shows observed whilst drilling the Lower Cretaceous section are consistent with wireline log interpretation indicating the presence of hydrocarbons. Well operations are ongoing and expected to take up to six weeks.

Tony Buckingham (pictured), Chief Executive Officer, commented:

It has been an exciting time for Heritage Oil as we have completed a significant acquisition providing the Company with cash generating assets and a substantial increase in our reserves and production outlook.

“Our interest in Nigeria provides a new direction for the Company and a larger foundation upon which we can build. The current management team has been very successful in value creation for Heritage, generating cash of over $2 billion from asset sales in the last decade.

“We look forward to completing the proposed divestment of the Miran asset and focusing on opportunities to expand our portfolio.

(Sources: Heritage, Yahoo)

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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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Heritage Oil Shares Jump on Sale to Genel


By John Lee.

Shares in Heritage Oil closed up 12.3% on Tuesday following the announcement that it will sell part of its Miran Block in Kurdistan and borrow money from Genel Energy to raise $450 million to fund oilfield purchases in Nigeria.

The comany will sell a 26 percent stake in the block to Genel and will take a $294 million loan from the company.

Tony Buckingham (pictured), Chief Executive Officer, commented:

We believe this sale and loan financing crystallises significant value for shareholders, demonstrating our ability to invest in and monetise assets at an appropriate stage. The proceeds provide significant financial flexibility allowing us to fund the proposed acquisition of OML 30 without any rights issue or other additional capital requirement from, or potential dilution to, our existing shareholders.

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Genel Energy Buys More Kurdish Assets


By John Lee.

Genel Energy has increased its commitment to oil exploration in Iraqi Kurdistan with the announcement that it has agreed to acquire an additional 26 per cent interest in the Miran exploration block from Heritage Oil.

The announcement comes just a day after the Kurdistan Regional Government’s Oil and Gas Council approved the company’s acquisition of a further 21 per cent stake in the Bina Bawi exploration licence from Hawler Energy, bringing its ownership of that venture to 44 per cent.

Commenting on the Miran transaction, Tony Hayward (pictured), Chief Executive Officer of Genel Energy, said:

This acquisition represents an excellent opportunity to extend our interest in, and assume joint operatorship of, a commercial gas discovery and high quality asset in the Kurdistan Region of Iraq.

“Following our recent acquisition of a 44% interest in Bina Bawi, it will further enhance our position as the leading oil and gas company in Kurdistan. We believe that as an Anglo-Turkish company we are uniquely placed to execute the full field development of the Miran Field including gas exports to Turkey and we aim to build a material gas business alongside our existing oil business in the medium term.

“Our belief in the significant potential of the region is stronger than ever and we aim to continue to play a leading role in the consolidation and development of the oil and gas sector in Kurdistan.

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Heritage Oil Interim Results


By John Lee.

Heritage Oil, which has operations in Iraqi Kurdistan, has published its interim results for the six months ended 30 June 2012:

Operational Highlights

· Execution of an agreement to acquire a transformational major interest in OML 30 in Nigeria (“Proposed Acquisition”), which is subject to shareholder approval, and is expected to complete in the second half of this year

  • Active work programme in the Kurdistan Region of Iraq (“Kurdistan”) with two rigs operating:

– The Miran West-3 well reached the primary target of the Jurassic gas reservoir and was successfully tested in May 2012

– The Miran West-4 well commenced drilling on 22 June 2012 to further appraise the Upper Cretaceous oil reservoir

– The Miran East-1 well is drilling ahead on prognosis and is currently evaluating the Lower Cretaceous reservoir before drilling ahead to the main Jurassic targets

  • Planning and development studies on the Miran Field and conceptual design studies on a gas export pipeline are ongoing
  • Tanzania work programme continues on the Kyela and Rukwa licences with the reprocessing of legacy 2D seismic data and completion of a high resolution gravity survey
  • Net average daily production of 567 bopd in the first half 2012, an increase of 35% on the same period in the prior year. Production for the month of July 2012 averaged 711 bopd

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