leadf
logo-loader
viewGenel Energy PLC

Genel Energy continues to receive oil sales payments from Kurdistan Regional Government

Snapshot

  • Low-cost oil production
  • Stakes in Taq Taq, Sarta and Tawke oilfields
  • Dividend payer
Genel Energy PLC -

Quick facts: Genel Energy PLC

Price: 147.4 GBX

LSE:GENL
Market: LSE
Market Cap: £409.29 m
Follow

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's doing

Genel updates investors with oil sales payments from the Kurdistan Regional Government on a monthly basis. Override payments will resume with the January 2021 invoice, translating into over US$5mln of additional cash proceeds each month assuming the prevailing oil price.

In November, the oiler declared ‘first oil’ at the Sarta field, where the company has a 30% stake alongside Chevron, expected to achieve stable production levels during the first quarter of 2021.

 

What the boss says: Bill Higgs, chief executive

"First oil at Sarta is an important strategic and operational milestone for Genel, not least given the challenges presented by COVID-19 in 2020."

“In that context, progressing Sarta to first oil has been a tremendous achievement and a testament to the alignment and co-operation of the field partners and contractors.”

“Already the only multi-licence producer in the Kurdistan Region of Iraq, the addition of Sarta further diversifies our production and cash flows. We look forward to the results of our well programme in 2021, which is designed to further appraise the potential of the field. This will enable us to work with Chevron to optimise the value of the asset in the years ahead."

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Genel Energy PLC named herein, including the promotion by the Company of Genel Energy PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Genel Energy now more ambitious and ready to grow in 2021, after 'building...

Genel Energy PLC's (LON:GENL), Bill Higgs speaks to Proactive London about their latest trading and operational result. Higgs explains how 2020, despite being a tough year, 'set the foundation for what's ahead', and now in a position to grow in 2021, with a twelve-well drill campaign among...

1 week, 1 day ago

2 min read