CAPEX AND BALANCE SHEET
- The Company's 2014 capital expenditure guidance is maintained at $550-600 million.
- Cash balances at end H1 2014 are expected to be c.$940 million following the successful $500 million senior unsecured bond issue in May. Net cash at end H1 2014 is expected to be c.$440 million.
KRI GAS BUSINESS
- First gas from the Summail development on the Dohuk licence (Genel 40% working interest) was delivered into the Dohuk Power Station in late May. Production averaged 83 mmscfd in June and peaked at over 100 mmscfd during the month.
- Good progress continues to be made negotiating a Gas Sales Offtake Agreement for the Miran field. These negotiations are expected to conclude before year-end 2014.
EXPLORATION UPDATE
Taq Taq Deep (KRI, Taq Taq PSC, Genel 44% working interest)
- Testing operations have now been completed on the Taq Taq-22 ("Taq Taq Deep") well.
- As previously reported, oil and gas shows were encountered in Jurassic and Triassic horizons beneath the main Cretaceous oil producing reservoirs in the field.
- A testing programme was carried out over three separate zones in the Jurassic and Triassic. The tests flowed minor non-commercial rates of oil and gas due to the tight nature of the reservoirs.
- The Taq Taq Deep well is being completed as a producer in the Cretaceous Shiranish reservoir.
- The Taq Taq-23 deviated development well spudded in June and is expected to take three months to complete.
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