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Oil & Gas

Genel Energy reports notable production growth whilst local sales continue

Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors that gross production from the Tawke licence continues to climb, with the average rate in the month of December (to date) "approaching" 90,000 barrels of oil per day (bopd).

It noted, in a statement, that this uplift sees projected fourth-quarter output rising to around 65,000 bopd, compared to 26,000 bopd in the third quarter.

Oil produced in the Kurdistan region of northern Iraq is being sold locally, as the export pipeline via Turkey remains shut.

The company said that it received US$8.2 million for local sales in October and US$6.6 million in November, and is set to receive over US$10 million in December. Its share expenditure is marked at around US$4 million per month, the company added.

Genel highlighted that costs have materially reduced since the pipeline closure, with operational spend at Tawke some 65% lower than pre-export shutdown.

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