Genel Energy Interim Management Statement

The Kurdistan Regional Government (KRG) instructed all contractors who are operating currently in the Kurdistan region to halt the export of crude oil. Due to this the portion of crude oil produced by the company’s two producing fields, Taq Taq and Tawke, which were destined for export via the Iraqi national pipeline has been halted. Due to this the average daily production for the year is expected to be 45,000 bopd.

Despite the halt of exporting crude oil from the Kurdistan region the development drilling programme and facility upgrades at Taq Taq and Tawke are on track for a production capacity target of 200,000 bopd for Taq Taq in 2014 and 100,000 bopd for Tawke by the end of 2012. Studies are underway to support 150,000-200,000 bopd from Tawke in 2014. Tenders to build the KICE pipeline are being reviewed, and options for optimising the  pipeline infrastructure investment and financing are being discussed with the KRG.

Reserves upgrade at Tawke field: Gross proven and probable reserves increased 78 per cent to 509 mmbbls (127 mmbbls net) in January 2012 and a further 44% to 734 mmbbls (184 mmbbls net) in May 2012, as a result of the successful drilling and testing of Tawke 16 in the northern flank of the field. An extensive seven well exploration programme covering the next 12 months is underway:  Peshkabir-1 and Ber Bahr-1 drilled and currently being tested, Miran East 1 spudded.

Genel Energy’s current exploration programme comprises of seven high impact wells which are to be completed during 2012 and early 2013. Already two of the seven wells have ben tested having reached target

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