Genel Energy PLC: Acquisition of stakes in Chevron operated blocks in the KRI (767713)

Dow Jones received a payment from EQS/DGAP to publish this press release.

 
 
 Genel Energy PLC (GENL) 
Genel Energy PLC: Acquisition of stakes in Chevron operated blocks in the 
KRI 
 
21-Jan-2019 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                      21 January 2019 
 
           Genel Energy plc 
 
        Acquisition of stakes in Chevron operated blocks in the KRI 
 
 Genel Energy plc ('Genel' or 'the Company') is pleased to announce that the 
     Company has reached agreement to acquire stakes in the Chevron operated 
                Sarta and Qara Dagh blocks, in the Kurdistan Region of Iraq. 
 
 Genel will acquire 30% equity in the Sarta licence by paying a 50% share of 
       ongoing field development costs until a specific production target is 
 reached, together with a success fee payable on achievement of a production 
  milestone. Chevron will retain a 50% interest in the Sarta licence and the 
 Kurdistan Regional Government will hold the remaining 20%. Genel's estimate 
                      of its total spend up to end-2020 is c.$60 million. 
 
   Drilling began on the first appraisal well, Sarta-3, in Q4 2017. The well 
    was successfully completed and tested during the second quarter of 2018. 
Both that and the Sarta-2 well individually tested at rates of c.7,500 bopd. 
     The first phase of development is expected to see these wells placed on 
                      production. 
 
 Genel will acquire 40% equity of the Qara Dagh appraisal licence and become 
    the operator through a carry arrangement. Chevron will retain 40% of the 
 equity, with the KRG holding the remaining 20%. The Qara Dagh-2 well is set 
 to be drilled in 2020. The Qara Dagh-1 well, completed in 201 1, tested oil 
                      in two zones from the Shiranish formation. 
 
      Closing is subject to approval from the Kurdistan Regional Government. 
 
                       Murat Özgül, Chief Executive of Genel, said: 
 
"We are delighted to have been chosen as a partner to Chevron. The agreement 
 provides access to a phased development opportunity with significant growth 
 potential at Sarta, and an exciting appraisal opportunity at Qara Dagh. The 
     additions to our portfolio are an important step in our diversification 
       strategy, offering a further opportunity for near-term production and 
                      cash-generation." 
 
           -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 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]. 
 
ISIN:          JE00B55Q3P39 
Category Code: ACQ 
TIDM:          GENL 
LEI Code:      549300IVCJDWC3LR8F94 
Sequence No.:  7203 
EQS News ID:   767713 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=767713&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

January 21, 2019 02:01 ET (07:01 GMT)