Genel Issues Interim Management Statement

PRODUCTION AND DEVELOPMENT ASSETS

  • A Declaration of Commerciality for the Miran field was approved by the Ministry of Natural Resources of the Kurdistan Regional Government ("KRG") in September. An Early Production Facility based on oil production from the Miran-1 well was commissioned in August 2013 and has been producing at rates up to 3,000bopd.
  • In September, the Dohuk licence (Genel 40% working interest) partners signed a Gas Sales and Purchase Agreement with the KRG to supply gas from the Summail field to a local power station. Initial deliveries will be around 100 million cubic feet per day with first gas targeted from the Summail-1 well in early 2014.
  • In October, the Tawke-23 horizontal well was brought onstream at a record rate of 32,500bopd. Drilling operations are ongoing at two additional horizontal wells (Tawke-21 and Tawke-22) with both slated for completion by year-end 2013.
  • Finalisation of the Turkey-KRI 10bcma Gas Sales Agreement is expected in 1Q 2014.

FINANCE

  • 2013 capital expenditure is forecast to be towards the top end of the US$500-550m guidance range.
    • 2013 KRI capex is estimated at c.US$450m, with the balance of spend on the African exploration    portfolio.
  • Cash balances at end-September 2013 were US$805m.

Tony Hayward (pictured), chief executive of Genel Energy, said:

"Genel continues to make solid progress, with production and revenues growing in line with our prior guidance. We are encouraged by the positive outcome on the testing of the CS-11 well, and the Tawke-23 horizontal well delivered an outstanding result.

"Importantly, the KRI political landscape continues to evolve at pace - the KRI independent oil export pipeline is now complete and being commissioned, and we expect exports by pipeline in the first quarter of 2014.

"We completed our first domestic gas sales contract in the third quarter and anticipate the finalisation of the gas sales agreement between Turkey and the KRG in the first quarter of 2014. Our high impact African Drilling campaign is on track to commence around year-end with the Cap Juby well offshore Morocco."

(Sources: Genel Energy, Yahoo!)

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