Genel Energy Trading and Operations Update

KRI GAS BUSINESS

  • The mid-stream pre-FEED and upstream Gas Development Plan for Miran and Bina Bawi are  progressing, with work on both expected to complete around the end of 2016
  • The Company remains of the view that the Miran and Bina Bawi fields comprise a world-scale gas asset  and an attractive investment opportunity, although progress is subject to political, commercial,  technical and financing milestones, the nature and timing of which are difficult to accurately predict

AFRICA EXPLORATION UPDATE

  • Offshore Morocco, the Company is continuing its efforts to bring in partner(s) to its operated Sidi  Moussa licence (Genel 60%) and is in active discussions with a number of parties. The Company has  reached agreement with ONHYM regarding an extension of the licence expiry date to Q3 2017. Genel  forecasts a maximum future exploration expense of c.$30 million associated with existing  commitments on its Morocco licences
  • The Somaliland government is expected to start a 2D seismic acquisition project around the end of   2016, with the Company then purchasing the associated data

FINANCIAL PERFORMANCE

  • $163 million of total cash proceeds received in 2016, of which:
    • $116 million against 2016 production
    • $24 million relates to the January 2016 payment for December 2015 sales
    • $23 million relates to the recovery of historical receivables
  • Under the terms of the Company's PSCs, capacity building payments are due on the profit oil portion  of monthly cash proceeds, with $21 million paid to the KRG in the year to date
  • Revenue of $50 million for Q3 2016 brought total revenue for the nine months ended 30 September  2016 to $141 million
  • Amounts invoiced for the nine months ended 30 September 2016, after associated CBP payments, are  $9 million less than PSC entitlement, with the difference attributable to the proxy formula used by  the KRG to calculate payments for current sales (as stated in the half year results of 28 July 2016)
  • Unrestricted cash balances at 30 September 2016 stood at $405 million ($407 million at 30 June 2016).  Net debt at 30 September 2016 stood at $241 million ($237 million at 30 June 2016)
  • Capital expenditure for Q3 2016 totalled $20 million, with the majority of spend on the development  programmes at Taq Taq and Tawke. Capex for the nine months ending 30 September 2016 totalled $52  million
  • The net receivable with the KRG for unpaid production stood at $437 million at 30 September 2016   ($412 million at 30 June 2016)
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