Kurdistan focussed oil producer Genel Energy PLC (LON:GENL) has announced pricing for a bond buy-back.
Up the US$252.8mln of bonds are due to be repurchased with bondholders offered up to 89.9% of par value - the weighted average price is 85.56 of par (or 85.56p in the pound).
Genel expects to settle the buy-back on April 11, and once complete the company intends to cancel the bonds.
The bond buy-back comes after financial results confirmed revenues dropped to US$190.7mln for the full-year to December 31 2016, down from US$243.9mln in 2015, as production fell to 53,300 barrels per day, down from 84,900 in 2015.
The group’s underlying operating excluding exploration costs (EBITDAX) was US$130.7mln, down from US$279.4mln in 2015, while its net debt held fairly steady at US$241.2mln, against US$238.8mln a year earlier.
A week before that, Genel revealed a 65% drop in proved and probable reserves at the Taq Taq field in the Kurdistan region of northern Iraq following a review of the competent persons report by McDaniel and Associates.
Taq Taq is now deemed to have 59.1mln barrels of reserves, down from 171.8mln.
The company said the downgrade reflected significant uncertainty over the fracture porosity in the Shiranish formation in an ‘un-swept’ portion of the reservoir, which McDaniel said remains “very difficult to estimate”.