Genel Energy PLC (GENL)
Genel Energy PLC: Update on oil reserves and resources
18-March-2020 / 07:00 GMT/BST
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18 March 2020
Genel Energy plc
Update on oil reserves and resources
Genel Energy plc ('Genel') today updates on oil reserves and resources
across its portfolio.
Bill Higgs, Chief Executive of Genel, said:
"Genel's producing assets are profitable even at an oil price of $30/bbl and
this, coupled with our robust balance sheet, supports investment in growth
and the payment of a material dividend. The reduction of reserves at Tawke
largely relates to production towards the end of the life of the field, and
consequently our mid-term production outlook is materially unchanged and
there is no reserves impact on our business plan. Our production funds an
approved but flexible capital programme that, in the right market
conditions, enables us to drill the wells necessary to evaluate the
potential to convert the 2C oil resources in our portfolio, validated for
the first time by ERCE, into reserves and production, boosting our cash
generation potential."
Net oil reserves (MMbbls) 1P 2P 3P
31 December 2018 99.3 154.9 219.3
Production (13.2) (13.2) (13.2)
Technical revisions (17.2) (17.8) (11.2)
31 December 2019 68.8 123.8 194.9
International petroleum consultants DeGolyer and MacNaughton assess that on
a gross basis, at the Tawke licence in the Kurdistan Region of Iraq
containing the Tawke and Peshkabir fields, year-end 2019 1P reserves stood
at 228 MMbbls, compared to 348 MMbbls at year-end 2018, after adjusting for
production of 45 MMbbls and a downward technical revision of 75 MMbbls.
Tawke licence 2P reserves stood at 400 MMbbls (502 MMbbls in 2018) and 3P
reserves at 641 MMbbls (697 MMbbls in 2018).
Broken down by field, Tawke field gross 1P reserves stood at 176 MMbbls (294
MMbbls in 2018), 2P reserves at 284 MMbbls (376 MMbbls in 2018) and 3P
reserves at 421 MMbbls (477 MMbbls in 2018). Peshkabir field gross 1P
reserves stood 51 MMbbls (54 MMbbls in 2018), 2P reserves at 116 MMbbls (126
MMbbls in 2018) and 3P reserves at 220 MMbbls (unchanged from 2018).
Genel continues to take a conservative view of the Enhanced Oil Recovery
project at the Tawke PSC, and will look to book reserves in relation to the
project, which has the potential to increase recovery over the life of
field, once enhanced performance has been demonstrated at the field.
DeGolyer and MacNaughton has included 23 MMbbls of 2P and 45 MMbbls of 3P
gross reserves, working interest portions of which are not included in the
table above.
At Taq Taq, there is a minor technical downward revision of 2.1 MMbbls of
gross 2P reserves associated with the unsuccessful TT-33 well, and these now
total 44 MMbbls, with gross 1P reserves increasing by 3.3 MMbbls to 20.1
MMbbls, illustrating the continued strong underlying performance of the
asset. McDaniel & Associates carried out the independent assessment of the
Taq Taq licence.
Genel's gross 2P reserves estimate relating to Phase 1A of the Sarta
development remains 34.3 MMbbls.
CONVERTING RESOURCES TO RESERVES
Net oil resources (MMbbls) 1C 2C 3C
31 December 2018 36.8 73.7 121.3
Technical revisions 29.7 78.3 224.5
31 December 2019 66.5 152 345.8
Following completion of the acquisition in 2019, Genel estimated gross
resources at Sarta to be c.500 MMbbls. This potential has now been validated
through an external audit conducted by ERCE, who has estimated a mid-case
total recoverable oil resource of 593 MMbbls, of which 264 MMbbls is
classified as 2C resource. Production performance in 2020, and the results
of the upcoming three well campaign in 2021, will set out a roadmap for the
conversion of these resources into reserves.
The Bina Bawi oil development has been certified by ERCE as 17.1 MMbbls of
2C resources, 13.6 MMbbls of which are expected to be converted into 2P
reserves should a commercial agreement be reached and FID be taken on the
first phase of the oil project.
At Qara Dagh the QD-2 well will test the crestal portion of the prospect
which, based on a rigorous re-mapping exercise, has a mean prospective
resource estimated by Genel at c.400 MMbbls. Genel estimates that the
downdip segment tested by the QD-1 well defines a 2C resource of 47 MMbbls.
-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
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. Genel has highly cash-generative oil production
from the Taq Taq and Tawke licences, with material growth potential from
other assets in the portfolio. Genel also continues to pursue further growth
opportunities. For further information, please refer to www.genelenergy.com
[1].
ISIN: JE00B55Q3P39
Category Code: MSCM
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 53059
EQS News ID: 1000253
End of Announcement EQS News Service
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March 18, 2020 03:00 ET (07:00 GMT)
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