AGM Statement (686957)

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 Genel Energy PLC (GENL) 
AGM Statement 
 
17-May-2018 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
17 May 2018 
 
           Genel Energy plc 
 
           AGM Statement 
 
Stephen Whyte, Chairman of Genel Energy plc ('Genel' or 'the Company'), will 
   give the following update on the business at the Company's Annual General 
   Meeting, which is being held at 11.00am today at Linklaters LLP, One Silk 
                      Street, London, EC2Y 8HQ. 
 
  "After a landmark 2017, Genel is continuing to build momentum and generate 
    significant amounts of cash, successfully progressing our strategy as we 
        strive to create value for shareholders. Payments from the Kurdistan 
    Regional Government ('KRG') have remained regular in 2018, and Genel has 
 received over $100 million in the year so far. We are now approaching three 
                      years of consistent payments from the KRG. 
 
      Our firm focus on capital discipline and identifying the best route to 
        shareholder value creation has converted a material portion of these 
  revenues into free cash flow, and our cash continues to grow at pace. This 
    has led to a material improvement in our financial strength: as at 1 May 
  2018, unrestricted cash balances stood at $208 million ($162 million at 31 
       December 2017), with IFRS net debt at $89 million, a reduction of $46 
                      million in the first four months of the year. 
 
Our disciplined capital allocation strategy targets those opportunities that 
          can create maximum value for shareholders. Given the potential and 
        performance of the Peshkabir field, this is the focus of our capital 
         expenditure in the first half of 2018, as the field offers exciting 
                      near-term production upside. 
 
    The first three of the six wells planned at Peshkabir have progressed on 
time and on budget. The Peshkabir-4 well is set to begin testing imminently, 
       Peshkabir-5 has reached target depth and will be testing shortly, and 
                      Peshkabir-6 is drilling ahead. 
 
 As the operator DNO has stated, production of 30,000 bopd is being targeted 
by the summer, doubling the 15,000 bopd from the field in the year to date - 
 with the potential for more to follow. As Peshkabir cash flows benefit from 
the Receivable Settlement Agreement, and the oil price is continuing to show 
   strength, this increase in production promises a further increase in cash 
                      flow from the Tawke PSC. 
 
Away from Peshkabir, the Tawke-48 well was brought onstream in April at more 
       than 5,000 bopd, and additional development wells will follow in 2018 
following mobilisation of a fourth rig. At Taq Taq, current gross production 
is just under 13,000 bopd, ahead of the resumption of drilling in the second 
                      half of the year. 
 
 Our existing portfolio offers material growth potential, with Peshkabir the 
    first of many opportunities, and we have the flexibility to move forward 
with those opportunities that can create the most value. Bina Bawi and Miran 
        retain transformational potential, both in terms of gas and oil. The 
upstream part of the gas project has been materially de-risked and light oil 
  at Bina Bawi offers an exciting opportunity, the progression of which is a 
                      key focus. 
 
   As work continues to generate value from our current assets, we also have 
     the financial strength to add assets that build on the strengths of our 
   portfolio. Governed by strict investment criteria prioritising areas with 
  low to moderate political risk while retaining a focus on significant cash 
             generation, Genel has the potential to develop a rich funnel of 
          opportunities and in turn fulfil our strategic ambition of being a 
                   world-class independent E&P creator of shareholder value. 
 
      We have a clear strategy, material growth opportunities, and the right 
                      management team to deliver on that strategy." 
 
       Genel will announce results for the six months ending 30 June 2018 on 
                      Tuesday 7 August 2018. 
 
           -ends- 
 
                      For further information, please contact: 
 
Genel Energy                          [phone] 
 
Andrew Benbow, Head of Communications 
 
Vigo Communications                   [phone] 
 
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. Through its Miran and Bina Bawi 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]. 
 
ISIN:          JE00B55Q3P39 
Category Code: MSCM 
TIDM:          GENL 
LEI Code:      549300IVCJDWC3LR8F94 
Sequence No.:  5555 
EQS News ID:   686957 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

May 17, 2018 02:01 ET (06:01 GMT)