Genel Energy PLC: Update on oil reserves and resources (1168496)
February 16 2021 - 1:00AM
UK Regulatory
Genel Energy PLC (GENL)
Genel Energy PLC: Update on oil reserves and resources
16-Feb-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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16 February 2021
Genel Energy plc
Update on oil reserves and resources
Genel Energy plc ('Genel') today updates on oil reserves and resources across its portfolio.
Bill Higgs, Chief Executive of Genel, said:
"The quality of our reserves is the foundation of our resilient business model, providing us with low-cost production
that can generate cash for many years to come. Drilling at Sarta this year has the potential to add to our reserves,
with Qara Dagh adding the possibility of opening up another field in the Kurdistan Region of Iraq, as we look to
further build our cash generative portfolio for the benefit of all stakeholders."
Net oil reserves (MMbbls) 1P 2P 3P
31 December 2019 68.8 123.8 194.9
Production (11.7) (11.7) (11.7)
Technical revisions 12.2 5.0 (6.0)
31 December 2020 69.4 117.2 177.2
International petroleum consultants DeGolyer and MacNaughton
assess that, at the Tawke field on the Tawke licence (Genel 25%
working interest), gross year-end 2020 1P reserves stood at 173
MMbbls, compared to 176 MMbbls at year-end 2019, after adjusting
for production of 21 MMbbls and an upward technical revision of 18
MMbbls. Tawke field 2P reserves stood at 245 MMbbls (261 MMbbls at
end-2019) and 3P reserves at 359 MMbbls (376 MMbbls at
end-2019).
The Enhanced Oil Recovery project at the Tawke field has started
to deliver a positive impact on production. Pending further work on
the project, the 23 MMbbls of 2P and 45 MMbbls of 3P gross reserves
that DeGolyer and MacNaughton previously included in their figures
continues to be maintained by Genel in 2C and 3C resources.
At Peshkabir, also on the Tawke licence (Genel 25% working
interest), year-end 2020 gross 1P reserves were assessed at 61
MMbbls (51 MMbbls at end-2019), 2P reserves at 116 MMbbls (125
MMbbls at end-2019) and 3P reserves at 201 MMbbls (220 MMbbls at
end-2019). The upward revision of 1P and 2P reserves by 29 MMbbls
more than offsets production of 19 MMbbls, and is the result of
continued outstanding field performance in 2020.
At Taq Taq (44% working interest, joint operator), 1P gross
reserves stood at 18 MMbbls at year-end 2020 (20 MMbbls at
end-2019), following a minor technical upward revision of 1 MMbbls
and production of 4 MMbbls. Gross 2P reserves stood at 33 MMbbls
(44 MMbbls at end-2019), with a downward revision of 8 MMbbls
following a reduction to the number of wells planned for the
future, and their associated expected productivity. McDaniel &
Associates carried out the independent assessment of the Taq Taq
licence.
Genel's gross 2P reserve estimate relating to Phase 1A of the
Sarta development remains unchanged at year-end 2020, standing at
34 MMbbls.
CONVERTING RESOURCES TO RESERVES
Net oil resources (MMbbls) 1C 2C 3C
31 December 2019 66.5 152.0 345.8
Technical revisions (8.6) (8.6) (8.0)
31 December 2020 57.9 143.4 337.8
There has been no change to the ERCE view on Sarta (30% working
interest), with an estimated mid-case total recoverable oil
resource of 593 MMbbls, of which 258 MMbbls are classified as 2C
resource. Production performance in 2021, and the results of the
upcoming three well campaign in 2021, will inform the quantity of
conversion of these resources into reserves.
At Qara Dagh (40% working interest, operator) the QD-2 well will
test the crestal portion of the prospect, which has a mean
prospective resource estimated by Genel at c.400 MMbbls. Genel
continues to estimate that the downdip segment tested by the QD-1
well defines a 2C resource of 47 MMbbls.
-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
This announcement includes inside information.
Notes to editors:
Genel Energy is a socially responsible oil producer listed on
the main market of the London Stock Exchange (LSE: GENL, LEI:
549300IVCJDWC3LR8F94). The Company is one of the largest
London-listed independent hydrocarbon producers, with an asset
portfolio that positions us well for a future of fewer and better
natural resources projects. Genel has low-cost and low-carbon
production from the Sarta, Taq Taq, and Tawke licences in the
Kurdistan Region of Iraq, providing financial resilience that
allows investment in growth and the payment of a material and
sustainable dividend, even at a low oil price. Genel also continues
to pursue further growth opportunities. For further information,
please refer to www.genelenergy.com.
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ISIN: JE00B55Q3P39, NO0010894330
Category Code: MSCM
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 93595
EQS News ID: 1168496
End of Announcement EQS News Service
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