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Oil & Gas

Genel Energy shares rise as Peshkabir ramp-up continues

The two previous wells doubled the field's output to 35,000 bopd, now another two wells are ready to come online

Genel Energy PLC (LON:GENL) has relayed to investors details of the ‘fast track’ development at the Peshkabir oil field in Northern Iraq, where partner and operator DNO is ramping up.

Peshkabir had previously grown to yield around 35,000 barrels of oil per day, up more than 100%, thanks to the completion of the Peshkabir-4 and Peshkabir-5 wells.

READ: Genel Energy highlights Peshkabir production growth

Now, two more wells - Peshkabir-6 and Peshkabir-7 – have been completed and are about to undergo production testing as they come online.

Two further new wells are also slated for the remainder of this year, with Peshkabir-8 to spud in 10 days, to be followed by Peshkabir-9 in October.

DNO is targeting production of 50,000 bopd from Peshkabir by the end of the year.

"Peshkabir is proving prolific in production and has generated over US$300mln in gross revenue since startup last year, or three times the investment," said Bijan Mossavar-Rahmani, DNO executive chairman.

Genel owns a 25% stake in the Tawke production sharing contract, which hosts both the Tawke field and Peshkabir.

DNO, additionally, confirmed that it is to resume development drilling at Tawke where the recent workover of existing wells has stabilised rates above 85,000 bopd.

Production increases at Tawke will be dependent upon the outcome of planned wells at Tawke, two slated in the second half of 2018. Meanwhile, engineering work is underway for an enhanced oil recovery project for Tawke.

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