Genel Releases Full Year Results

Bina Bawi (44% working interest)

Genel Energy has a 44% non-operated stake in the Bina Bawi licence, which lies immediately northwest of the Taq Taq licence. A Declaration of Commerciality was submitted to the Ministry of Natural Resources of the KRG in March. An extended well test on the Bina Bawi-3 well commenced production in March 2013.

In 2013, two very successful appraisal wells were completed which led to a significant upgrade in contingent resources. The Bina Bawi-4 well reached a target depth of 4,700 metres, while Bina Bawi-5 reached target depth at 3,400 metres. An extensive testing programme on both wells was completed in the second quarter of 2013. Testing has confirmed a continuous, hydraulically connected gas column in excess of 1,100 metres in both wells. The top of the Triassic Kurra Chine formation is 400 metres down-dip from the crest of the Bina Bawi structure, as tested by the Bina Bawi-3 well. In total, this confirms a minimum gas column of at least 1,500 metres on the structure. There is the potential for up to an additional 500 metres of hydrocarbon column, below the basal test in Bina Bawi-4 down to the structural spill point.

The Drill Stem Tests (DST) were completed over the full extent of the drilled Triassic interval, including the Geli Khana and across the entire Kurra Chine section. Observed productivity has been high over perforated zones of 30 to 60 metres. Across the Kurra Chine, rates of around 20 million standard cubic feet per day (mmscfd) were recorded in the three separate zones with the highest achieved rates limited by tubing and surface test equipment. Cumulative production across the Kurra Chine sections was 60 mmscfd. In the Geli Khana, a non-acidised stabilised flow rate of 10 mmscfd was achieved.

A Competent Person's Report commissioned from RPS Energy estimates gross mean contingent gas resource for Bina Bawi at 4.9 tcf, confirming the world-class scale of the field. Management believes that, when combined with Miran, Bina Bawi is well placed to anchor the 10 bcma of export volumes from the KRI to Turkey by 2020, as envisaged in the GSA signed between Turkey and the KRG in November 2013.

Dohuk (40% working interest)

Genel Energy has a 40% non-operated interest in the Dohuk licence. The Summail discovery, made in 2011, contains gas in Cretaceous aged reservoirs and heavy oil in Jurassic aged reservoirs. In September 2013, the Dohuk licence partners signed a Gas Sales and Purchase Agreement (GSPA) with the KRG to supply gas from the Summail field to a local power station.

The field development envisages the completion of the Summail-1 well as a producer as well as the drilling of up to three further production wells. A gas processing facility will also be installed at the field and a pipeline will be constructed to deliver gas to the nearby Dohuk power station. Initial deliveries will be 30 to 50 mmscfd, increasing towards 100 to 120 mmscfd as new wells are drilled and additional facilities are installed. First gas from the Summail-1 well is targeted for the first quarter of 2014.

At year-end 2013, Genel Energy booked its share of the 2P reserves associated with the Summail GSPA, which amounted to 21 mmboe.

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