Oil production at Genel Energy PLC’s (LON:GENL) Tawke field in Kurdistan is slightly ahead of expectations, according to one City broker.
Genel said in an update today that gross production at its other Kurdistan licence, Taq Taq, has averaged 45,000 barrels of oil per day (bopd) so far in the fourth quarter of the year.
If this continues through to the end of the year, production at the field would have averaged just shy of 52,000bopd in the second half of 2016 – 5% below Numis’ foercasts.
On a more positive note though, net production from both Taq Taq and Tawke has averaged 53,500bopd so far in 2016 – in line with guidance from Genel.
“Whilst the update points to Taq Taq second half production some 5% below our prior estimates, the group level production suggests that Tawke production may be slightly ahead of our estimates,” the broker said in a note.
Numis has repeated its ‘buy’ recommendation for the stock, and has a target price of 175p – exactly £1 higher than where the price currently sits.