In the three months since its creation, the Anglo-Turkish independent, Genel Energy plc, has moved with "remarkable speed to build the foundations of what I believe will become a major regional oil and gas company," its chief executive Tony Hayward said on Thursday.
Previewing a presentation he will make to capital markets, Hayward said revenues from existing oil output were now sufficient to fund Genel's ongoing business in the Iraq Region of Kurdistan, including a significant expansion of production and an aggressive exploration drive aimed at adding up to 700 million barrels to the company's resource base.
"From our domestic sales alone we expect our Kurdistan operations to generate revenues of between $250 million and $300 million in the course of this year, with potential upside from exports," he said.
"Even with the threefold increase in investment we plan for 2012 which will take our capital spend to between $200 million and $250 million, current sales revenues are quite sufficient to fund our ongoing programmes, including exploration, appraisal and development. We therefore intend to manage the business on a cash-neutral basis and preserve our $1.9 billion cash reserves for other opportunities in the Middle East and Africa."
Hayward told analysts and fund managers that the company has made "rapid progress" since its formation in November from the merger of Vallares and Genel International. In its first 90 days it had: