Genel Energy PLC: Update on Bina Bawi (804991)

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 Genel Energy PLC (GENL) 
Genel Energy PLC: Update on Bina Bawi 
 
30-Apr-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. 
 
                      30 April 2019 
 
           Genel Energy plc 
 
           Update on Bina Bawi 
 
Genel Energy plc ('Genel' or 'the Company') provides the following update on 
                      the Bina Bawi licence. 
 
      As previously announced, the deadline to meet the conditions precedent 
  relating to the Bina Bawi gas lifting agreement ('GLA') was extended until 
30 April 2019, as discussions with the Kurdistan Regional Government ('KRG') 
      on the commercial framework relating to the development of the licence 
                      continued. 
 
         Having reached agreement that the existing GLA does not reflect the 
   commercial realities of the proposed development, Genel and the KRG ('the 
     Parties') have jointly agreed to let the GLA lapse on 30 April 2019 and 
         focus on negotiating updated commercial terms based on a staged and 
         integrated oil and gas development. The Parties are progressing the 
negotiation of a project scope based on a phased approach and ramp up of the 
gas development, with an initial phase of c.250 MMscfd raw gas capacity, and 
   an accelerated development of the oil scope, where the KRG and Genel will 
jointly fund the first phase gas development utilising the revenue from Bina 
                      Bawi oil. 
 
   The Parties have agreed to focus on finalising the commercial arrangement 
      for this solution as soon as practical. The current production sharing 
      contract ('PSC') provides a further 12 month period from 30 April 2019 
   within which to agree a new GLA. Should no agreement be reached in twelve 
                      months, the KRG has a right to terminate the PSC. 
 
 In line with our capital allocation strategy, the Company will only proceed 
  with significant investment in Bina Bawi once an agreement is reached on a 
           commercial framework that provides a clear route to monetisation. 
 
   The deadline for the Miran conditions precedent will be reached on 31 May 
       2019 and the Company similarly expects that the Miran GLA will lapse. 
 
           -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. 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.:  8425 
EQS News ID:   804991 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=804991&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

April 30, 2019 02:01 ET (06:01 GMT)