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Genel Energy PLC (GENL)
Genel Energy PLC: Trading and operations update
10-Oct-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
10 October 2018
Genel Energy plc
Trading and operations update
Genel Energy plc ('Genel' or 'the Company') issues the following trading and
operations update in respect of Q3 2018. The information contained herein
has not been audited and may be subject to further review.
Murat Özgül, Chief Executive of Genel, said:
"Genel continues to rapidly increase both production and cash, and is now in
a net cash position. Peshkabir is once again exceeding expectations, and
drilling on the Taq Taq and Tawke fields provides the potential for working
interest production to continue to grow. This can further increase our
already material free cash flow generation. With notable opportunities in
the portfolio, Genel is well positioned to generate significant shareholder
value."
FINANCIAL PERFORMANCE
· $236 million of cash proceeds received as of 30 September 2018, of which
$85 million was received in Q3
· Free cash flow of $119 million in the first nine months of 2018 ($70
million in H1 2018), with capital expenditure of $62 million
· Cash of $281 million at 30 September 2018 ($233 million at 30 June 2018)
· Net debt of $16 million at 30 September 2018 ($64 million at 30 June
2018)
· Post period end, the receipt of $32 million relating to July 2018
exports means that Genel is now in a net cash position
Q3 2018 OPERATING PERFORMANCE
· 2018 net production averaged 32,600 bopd as at 30 September 2018, with
Q3 averaging 33,700 bopd
· Production and sales by asset during Q3 2018 was as follows:
(bopd) Export via Refinery Total Total Genel net
pipeline sales sales productio production
n
Taq Taq 12,240 0 12,240 12,230 5,380
Tawke PSC 113,450 0 113,450 113,090 28,270
Total 125,690 0 125,690 125,320 33,650
Note: Difference between production and sales relates to inventory movements
· Tawke PSC (Genel 25% working interest)
· Tawke PSC production averaged 113,100 bopd in Q3 2018, including a
contribution of 29,700 bopd from the Peshkabir field
· Following the successful results of the Peshkabir-7 well, current
production from the Peshkabir field is c.50,000 bopd
· Current production from the Tawke field is just over 80,000 bopd
· Drilling activity at the Tawke field has recommenced
· The Tawke-50 shallow Jeribe well has been drilled to a depth of 320
metres will be brought on production within several days
· The Tawke-49 Cretaceous well is drilling ahead and will be completed
later this month
· Two additional Tawke wells, one each in the Jeribe and the
Cretaceous, will be drilled by the end of the year
· Drilling activity continues at Peshkabir
· Peshkabir-6 has established a deeper Cretaceous oil/water contact
level than previously estimated. Further testing is underway, including
test production of multiple producing zones
· The Peshkabir-8 well, spud in late August, is drilling ahead. Once
completed, the rig will move to spud Peshkabir-9 in November
· A central processing facility at Peshkabir is set to be commissioned by
the end of 2018, which will have a capacity of up to 50,000 bopd, ensuring
that production remains unconstrained by surface facilities
· Production from Peshkabir is highly cash-generative to Genel, with every
10,000 bopd increase in gross field production adding over $2 million to
the Company's monthly free cash flow
· Taq Taq PSC (Genel 44% working interest and joint operator)
· Taq Taq field production averaged 12,200 bopd in Q3 2018
· Current production from the Taq Taq field is c.12,000 bopd
· With production at the field having stabilised, the five well
programme, which aims to increase total production, is now underway
· The TT-32 well, located to the north-west of the successful TT-29w
well on the northern flank of the field, has now spud
· The well is expected to be on production by the end of 2018, and the
rig will then move on to drilling locations on the western and
southern flanks of the field
· Bina Bawi and Miran (Genel 100% and operator)
· Field development plan ('FDP') submitted to Ministry of Natural
Resources ('MNR') regarding the 34 MMbbls of 2C light oil at Bina Bawi,
with the FDP for the Bina Bawi gas development well advanced and set to
be added to this submission shortly. The submission will enable
completion of the discussions with the MNR in relation to the
optimisation of value creation from Bina Bawi
· A field development plan regarding Miran is on track to be submitted
to the MNR around the end of the year
· African exploration
· Onshore Somaliland, seismic processing is now nearing completion, and
preliminary analysis and interpretation is underway. A prospect
inventory will then be developed, with the potential to spud a well
around the end of 2019
· On the Sidi Moussa block offshore Morocco (Genel 75% working interest,
operator), over 2,000 km2 of 3D seismic has now been acquired, c.60% of
the total. Acquisition is set to complete in November, with data
processing to follow in 2019
OUTLOOK AND 2018 GUIDANCE
· Average net production for 2018 expected to be slightly above guidance
of c.32,800 bopd, with exit rate production at the end of the year
forecast to be considerably higher than this figure
· The uplift in production at Peshkabir in Q3 will lead to record cash
receipts in Q4, with ongoing strong free cash flow generation
· Capital expenditure for 2018 is expected to be towards the bottom end of
the previously stated $95-125 million guidance range
· Operating expenditure for 2018 expected to be c.$25 million, lower than
previous guidance of c.$30 million
· The positive results from wells at Peshkabir are expected to lead to a
material increase in proven and probable reserves
-ends-
For further information, please contact:
Genel Energy +44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Communications +44 20 7390 0230
Patrick d'Ancona
This announcement includes inside information.
Notes to editors:
Genel Energy is an independent oil and gas exploration and production
company listed on the main market of the London Stock Exchange (LSE: GENL,
LEI: 549300IVCJDWC3LR8F94). The Company, with headquarters in London and
offices in Ankara and Erbil, is one of the largest London-listed independent
oil producers, and is the largest holder of reserves and resources in the
Kurdistan Region of Iraq. Through its Bina Bawi and Miran fields, the
Company is positioned to be a cornerstone provider of KRI gas to Turkey
under the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue
further growth opportunities. For further information, please refer to
www.genelenergy.com [1].
Disclaimer
This announcement contains certain forward-looking statements that are
subject to the usual risk factors and uncertainties associated with the oil
& gas exploration and production business. Whilst the Company believes the
expectations reflected herein to be reasonable in light of the information
available to them at this time, the actual outcome may be materially
different owing to factors beyond the Company's control or within the
Company's control where, for example, the Company decides on a change of
plan or strategy. Accordingly, no reliance may be placed on the figures
contained in such forward looking statements.
ISIN: JE00B55Q3P39
Category Code: QRT
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 6160
EQS News ID: 731931
End of Announcement EQS News Service
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(END) Dow Jones Newswires
October 10, 2018 02:01 ET (06:01 GMT)
