What it does
Genel Energy PLC (LON:GENL) is the largest holder of reserves and resources in the Kurdistan Region of Iraq, where it operates the Taq Taq and Tawke oil fields, in which it owns 44% and 25% stake respectively.
In the same region it is also planning a drilling campaign at the Qara Dagh field where it envisages some 200mln barrels of crude, while the Sarta field, where it has partnered with US giant Chevron, is set to see a mid-2020 startup date.
It also has exploration acreage in Morocco, at the offshore Sidi Moussa licence, and Somaliland, where it recently bought out its partner East Africa Resource Group in the SL10B13 onshore block, estimated to hold around 200mln barrels of oil.
How it is doing
Genel expects full-year production to rise by 10% to 36,900 barrels per day after a strong performance over the first half.
Management said the TT-34 well at the Taq Taq field will commence production “around the middle of January” with an initial output of between 1,500 and 2,000 bopd once it comes on stream.
The six months to 30 June saw an average net production of 7,400 barrels per day or 17% higher than 2018, as both the Tawke and Taq Taq fields in Iraqi Kurdistan saw higher output.
Those extra barrels translated into cash generation of US$76mln including a post-period receipt, which has helped Genel switch to a net cash position of US$56mln from debts of US$64mln in 2018.
What the boss says: Bill Higgs, chief executive
"Rapid payback from our low break-even assets gives us resilience and significant flexibility in regard to future capital allocation."
"The sustainability of our cash-generation provides opportunities to deliver material shareholder value through investing in growth and increasing returns to shareholders.”
- Production boost at Taq Taq field
- First well at Qara Dagh
- Sarta field startup