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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