Genel Energy PLC (LON:GENL) shares shed around 11% on Tuesday after it issued guidance flagging a possible 34% drop in production in 2017.
The Kurdistan based oil firm today reported net production averaged 53,300 barrels of oil per day over 2016, with 26,500 barrels net coming from the Taq Taq field and 26,800 bopd from Tawke.
Genel forecasts production in the range of 35,000 to 43,000 bopd for 2017, based on expectations that a programme to stem decline in the Taq Taq is completed.
At Taq Taq a workover and a new appraisal well is planned, and Genel highlighted that a further programme involving the installation of well pumps to boost production is contingent upon “regular and predictable export payments”.
Net capital expenditure is presently anticipated in the range of US$50-75mln at the Taq Taq and Tawke field.
Chief executive Murat Özgül said: “2016 was a major step forward for the monetisation of oil exports from the Kurdistan Region of Iraq.
“We received $207 million in cash proceeds for oil sales and receivable recovery.
“These payments in turn allowed for work programmes to resume at Taq Taq and Tawke. The KRG has confirmed that payments will continue, allowing us to plan with confidence for 2017."