Genel Energy PLC (LON:GENL) told investors that it is continuing to build momentum and generate significant amounts of cash from its operation in the Kurdistan region of Iraq.
“Payments from the Kurdistan Regional Government (KRG) have remained regular in 2018, and Genel has received over $100 million in the year so far,” the company said in a statement ahead of its AGM today in London.
“We are now approaching three years of consistent payments from the KRG.”
READ: Genel expects significant and sustainable cash flow
Focusing on operations, Genel highlighted that it is progressing the first three of six planned wells at the Peshkabir and the programme is on time and on budget.
Drilling of the Peshkabir-4 well is set to start imminently. At the same time the Peshkabir-5 well reached target depth and testing will start shortly, and, Peshkabir-6 is drilling ahead.
“Our existing portfolio offers material growth potential, with Peshkabir the first of many opportunities, and we have the flexibility to move forward with those opportunities that can create the most value,” Genel said.
“Bina Bawi and Miran retain transformational potential, both in terms of gas and oil.”
Genel, meanwhile, said that it maintained capital discipline, and at the start of May it had a cash balance of US$208mln and had US$89mln of net debt (reduced by US$46mln over the first four months of 2018).