Genel Energy Interim Management Statement

EXPLORATION

• In April, the company announced that, together with White Rose Energy Ventures, it had agreed to acquire 15% working interests in Block 38 and 39 offshore Angola. The transactions provide Genel with a position in exploration licences that hold multi-billion barrel prospectivity and represent an attractive high-impact near-term exploration opportunity. The Stena Carron drillship has been contracted for a drilling programme, which is expected to commence in mid-2014. The first well of this programme, on Block 39, is expected to target the very material Dilolo prospect.
• Drilling operations on the Taq Taq Deep exploration well were completed in March 2014 at a depth of 4,600m after the well had intersected gas bearing upper Triassic reservoirs. A testing programme on Jurassic and Triassic reservoirs is now in progress.
• The Cap Juby well offshore Morocco confirmed the presence of heavy oil over a gross interval of 110 metres in an Upper Jurassic carbonate reservoir. Work is ongoing to evaluate the extent of moveable hydrocarbons and how any further assessment should be conducted.
• The exploration well on the Hagar Qim prospect on the Area 4 licence offshore Malta is scheduled to spud in May.

FINANCE

• 2014 capital expenditure guidance remains at $550-600 million as the capital programme has been optimised to accommodate the Angola drilling activity.
• Cash balances at 31 March 2014 stood at c.$600 million.

(Source: Genel Energy)