Genel Energy: Trading and Operations Update

Tawke PSC (25% working interest)

The Tawke field produced an average of 39,000bopd in 2013, compared to 45,000bopd in 2012. Production levels were reduced in 4Q 2013 relative to the prior quarter due to price sensitivity in the domestic market. The Tawke-20 and Tawke-23 horizontal wells were brought onstream during 2013 at rates of 25,000bopd and 32,500bopd. Drilling operations on the third and fourth wells in the programme, Tawke-21 and Tawke-22, are progressing with results expected in 1Q 2014.

In 2014, planned activity includes the drilling of further horizontal wells. Work will continue on the Tawke production facilities, which is expected to raise production capacity from 100,000bopd to 200,000bopd.

Further success in the horizontal drilling programme could lead to further increases in production capacity going forward. To facilitate the higher volumes, a new 24" pipeline is planned from the field to the Tawke partners' Fishkabur export facility. The Tawke partners also plan to appraise the Peshkabir discovery in 2014 with a side-track of the Peshkabir-1 discovery well and the drilling of the Peshkabir-2 well.

KRI Gas Assets

In November 2013, the Government of Turkey and the KRG signed a Gas Sales Agreement governing the export of natural gas from the KRI to Turkey. The GSA calls for an initial 4bcma of gas exports from 2017, rising to 10bcma by 2020 and the option of increasing to 20bcma thereafter.Genel anticipates that Miran and Bina Bawi will be anchor suppliers under the GSA and believes it is a significant milestone in the commercialisation of the major gas resource in both fields.

Miran PSC (100% working interest, operator)

A Declaration of Commerciality ("DoC") for the Miran field was approved by the Kurdistan Regional Government on 3 September 2013.

Miran is one of the largest undeveloped gas discoveries in the KRI, and the Turkey-KRG Gas Sales Agreement is a significant milestone in the commercialisation of this material resource. Discussions with the KRG have already commenced, with the objective of finalising a Gas Sales Offtake Agreement for the Miran field by mid-year 2014. In parallel, the Company continues to screen a number of development concepts, incorporating both domestic and export supply options.

2014 will see the completion of the Miran West-5 ("MW-5") appraisal well. MW-5 was spudded in July 2013 but mechanical difficulties with the DQE rig resulted in the well being suspended. A decision has been made to swap the DQE rig for the T-63 rig which has recently finished the Bina Bawi-6 appraisal well. Results from the MW-5 well are now expected by mid-year 2014, to be followed by an Extended Well Test in 2H 2014. The Miran Deep exploration well is now expected to be drilled in 2015.

The Miran-1 oil Early Production Facility ("EPF") has been producing at 500-1,500bopd. The EPF is to be suspended in 1Q 2014 in preparation for drilling the first horizontal development well into the Miran oil reservoir. The well is expected to spud around mid-year 2014, and the results of this well will be important in shaping future oil development on the licence.