There’s been a cull of oil reserves at Genel Energy PLC’s (LON:GENL) Taq Taq field in the Kurdistan region of northern Iraq.
Genel today revealed a 65% drop in proved and probable reserves at Taq Taq following a review of the competent persons report by McDaniel and Associates.
Taq Taq is now deemed to have 59.1mln barrels of 2P reserves, down from 171.8mln.
The company explained that the downgrade comes amid significant uncertainty over the fracture porosity in the Shiranish formation in an ‘un-swept’ portion of the reservoir. McDaniel said it remains “very difficult to estimate”.
Taq Taq’s production continues to decline. It presently produces some 19,000 barrels per day, down from 36,000 at the end of 2016. And Genel has withdrawn its guidance for Taq Taq (which had been expected to yield 24-31,000 bopd).
Genel said it expects to make a US$181mln impairment for Taq Taq in its 2016.
Results for the twelve months to December 31 are due to be reported this Thursday, which is March 30.