Genel Energy PLC: Acquisition of stakes in Chevron operated blocks in the KRI (767713)
January 21 2019 - 1:01AM
UK Regulatory
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Genel Energy PLC (GENL)
Genel Energy PLC: Acquisition of stakes in Chevron operated blocks in the
KRI
21-Jan-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
21 January 2019
Genel Energy plc
Acquisition of stakes in Chevron operated blocks in the KRI
Genel Energy plc ('Genel' or 'the Company') is pleased to announce that the
Company has reached agreement to acquire stakes in the Chevron operated
Sarta and Qara Dagh blocks, in the Kurdistan Region of Iraq.
Genel will acquire 30% equity in the Sarta licence by paying a 50% share of
ongoing field development costs until a specific production target is
reached, together with a success fee payable on achievement of a production
milestone. Chevron will retain a 50% interest in the Sarta licence and the
Kurdistan Regional Government will hold the remaining 20%. Genel's estimate
of its total spend up to end-2020 is c.$60 million.
Drilling began on the first appraisal well, Sarta-3, in Q4 2017. The well
was successfully completed and tested during the second quarter of 2018.
Both that and the Sarta-2 well individually tested at rates of c.7,500 bopd.
The first phase of development is expected to see these wells placed on
production.
Genel will acquire 40% equity of the Qara Dagh appraisal licence and become
the operator through a carry arrangement. Chevron will retain 40% of the
equity, with the KRG holding the remaining 20%. The Qara Dagh-2 well is set
to be drilled in 2020. The Qara Dagh-1 well, completed in 201 1, tested oil
in two zones from the Shiranish formation.
Closing is subject to approval from the Kurdistan Regional Government.
Murat Özgül, Chief Executive of Genel, said:
"We are delighted to have been chosen as a partner to Chevron. The agreement
provides access to a phased development opportunity with significant growth
potential at Sarta, and an exciting appraisal opportunity at Qara Dagh. The
additions to our portfolio are an important step in our diversification
strategy, offering a further opportunity for near-term production and
cash-generation."
-ends-
For further information, please contact:
Genel Energy +44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Communications +44 20 7390 0230
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 Bina Bawi and Miran 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: ACQ
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 7203
EQS News ID: 767713
End of Announcement EQS News Service
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(END) Dow Jones Newswires
January 21, 2019 02:01 ET (07:01 GMT)
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