Genel Energy PLC (LSE:GENL, OTC:GEGYY) said it expects its cash holdings to top US$500mln by the end of 2022 after a combination of another strong production quarter and high crude prices.
In a trading and operations update, Paul Weir, Genel's chief executive, said: “I am pleased that we remain on track to generate around US$250mln of free cash flow this year. We are focused on putting this cash to work to purchase new assets, grow the business, and increase shareholder returns."
“It is business as usual on an operational level in Kurdistan, while we continue to work with the KRG on the challenges that the sector faces," he added.
Production from the Tawke field in Kurdistan, the company's major asset and where it has a 25% stake, averaged 108,300 barrels of oil per day (bopd) in the third quarter.
Margins per barrel this year so far have averaged around US$36 with Brent crude averaging US$105, Genel noted.
For 2022, net production guidance was reiterated at 30,000-31,000 bopd as was its capex guidance of between US$150mln-£170mln.
Genel said that written submissions have now been submitted in the dispute over the cancellation of the Miran and Bina Bawi contracts with a trial scheduled for February 2024.