AGM Statement (686957)
May 17 2018 - 1:01AM
UK Regulatory
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release.
Genel Energy PLC (GENL)
AGM Statement
17-May-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
17 May 2018
Genel Energy plc
AGM Statement
Stephen Whyte, Chairman of Genel Energy plc ('Genel' or 'the Company'), will
give the following update on the business at the Company's Annual General
Meeting, which is being held at 11.00am today at Linklaters LLP, One Silk
Street, London, EC2Y 8HQ.
"After a landmark 2017, Genel is continuing to build momentum and generate
significant amounts of cash, successfully progressing our strategy as we
strive to create value for shareholders. Payments from the Kurdistan
Regional Government ('KRG') have remained regular in 2018, and Genel has
received over $100 million in the year so far. We are now approaching three
years of consistent payments from the KRG.
Our firm focus on capital discipline and identifying the best route to
shareholder value creation has converted a material portion of these
revenues into free cash flow, and our cash continues to grow at pace. This
has led to a material improvement in our financial strength: as at 1 May
2018, unrestricted cash balances stood at $208 million ($162 million at 31
December 2017), with IFRS net debt at $89 million, a reduction of $46
million in the first four months of the year.
Our disciplined capital allocation strategy targets those opportunities that
can create maximum value for shareholders. Given the potential and
performance of the Peshkabir field, this is the focus of our capital
expenditure in the first half of 2018, as the field offers exciting
near-term production upside.
The first three of the six wells planned at Peshkabir have progressed on
time and on budget. The Peshkabir-4 well is set to begin testing imminently,
Peshkabir-5 has reached target depth and will be testing shortly, and
Peshkabir-6 is drilling ahead.
As the operator DNO has stated, production of 30,000 bopd is being targeted
by the summer, doubling the 15,000 bopd from the field in the year to date -
with the potential for more to follow. As Peshkabir cash flows benefit from
the Receivable Settlement Agreement, and the oil price is continuing to show
strength, this increase in production promises a further increase in cash
flow from the Tawke PSC.
Away from Peshkabir, the Tawke-48 well was brought onstream in April at more
than 5,000 bopd, and additional development wells will follow in 2018
following mobilisation of a fourth rig. At Taq Taq, current gross production
is just under 13,000 bopd, ahead of the resumption of drilling in the second
half of the year.
Our existing portfolio offers material growth potential, with Peshkabir the
first of many opportunities, and we have the flexibility to move forward
with those opportunities that can create the most value. Bina Bawi and Miran
retain transformational potential, both in terms of gas and oil. The
upstream part of the gas project has been materially de-risked and light oil
at Bina Bawi offers an exciting opportunity, the progression of which is a
key focus.
As work continues to generate value from our current assets, we also have
the financial strength to add assets that build on the strengths of our
portfolio. Governed by strict investment criteria prioritising areas with
low to moderate political risk while retaining a focus on significant cash
generation, Genel has the potential to develop a rich funnel of
opportunities and in turn fulfil our strategic ambition of being a
world-class independent E&P creator of shareholder value.
We have a clear strategy, material growth opportunities, and the right
management team to deliver on that strategy."
Genel will announce results for the six months ending 30 June 2018 on
Tuesday 7 August 2018.
-ends-
For further information, please contact:
Genel Energy +44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Communications +44 20 7830 9700
Patrick d'Ancona
Notes to editors:
Genel Energy is an independent oil and gas exploration and production
company listed on the main market of the London Stock Exchange (LSE: GENL,
LEI: 549300IVCJDWC3LR8F94). The Company, with headquarters in London and
offices in Ankara and Erbil, is one of the largest London-listed independent
oil producers, and is the largest holder of reserves and resources in the
Kurdistan Region of Iraq. Through its Miran and Bina Bawi fields, the
Company is positioned to be a cornerstone provider of KRI gas to Turkey
under the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue
further growth opportunities. For further information, please refer to
www.genelenergy.com [1].
ISIN: JE00B55Q3P39
Category Code: MSCM
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 5555
EQS News ID: 686957
End of Announcement EQS News Service
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(END) Dow Jones Newswires
May 17, 2018 02:01 ET (06:01 GMT)
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