Genel Energy PLC (LON:GENL) shares started Monday higher after a well success at the Taq Taq field, in the Kurdistan Region of Northern Iraq.
The TT-29w well was drilled at the northern flank of the field, and after encountering good quality oil bearing reservoirs, it has now been completed as a production well.
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A total of six zones were tested, with individual zones yielding rates of up to 6,400 barrels of oil per day. Production is now underway, initially measuring 3,200 bopd, and the volumes are expected to rise.
Genel noted that the TT-29w well encountered the oil-to-water contact at least 145 metres deeper than expected and it described itself as optimistic – albeit, the company added that it is too early to make assumptions what this result may mean for the field’s reserve base.
Similarly, the company said in a statement on Monday that it was also too early to make judgements on the future production volumes from the flank or what the result may be for future investments.
Presently the Taq Taq field produces around 15,000 bopd gross, and over the year-to-date volumes have averaged 18,300 bopd.