Genel Energy PLC (LSE:GENL, OTC:GEGYY) chief executive Paul Weir told investors that the North Iraq oil producer is in a “robust” financial position, and that he sees “multiple potential catalysts” to drive the creation of significant shareholder value.
Weir’s comments came in a trading update which today confirmed local sales from the Tawke licence have remained robust, with prices increasing marginally and strong demand.
It reported 76,310 barrels of oil per day in the first quarter, from the Tawke licence, for sale into the local domestic market – net to the company production amounted to 19,080 bopd.
The local sale price has been lifted to “the upper $30 per barrel level” following recent negotiations, Genel noted.
Meanwhile, it said that talks are continuing between stakeholders regarding the Iraq-Turkey export pipeline – which is currently shutdown – but the timing of a resumption of exports remains uncertain.
Genel said it had $372 million of cash at the end of its first quarter, at the end of March, and was $361 million at the end of April following an $11 million bi-annual bond repayment.
Net cash (IFRS) stood at $128 million at the quarter’s end, and Genel said it expects the net cash number will stay “well above $100 million” throughout 2024.
CEO Weir, in the statement, highlighted: “We have achieved balanced income and expenditure in the first quarter of the year, which is ahead of schedule.
“Local sales from the Tawke licence have been robust to date, with the sales price increasing marginally and demand staying strong, and we continue to expect income to cover our spend over the course of the full year.
“Local sales volumes going forward will continue to be dependent on demand, the view of the field partners on reservoir management, and whether investment would be cost effective and deliver value to shareholders.”