Genel Energy PLC Sale of interest in Chia Surkh PSC (7849D)

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RNS Number : 7849D

Genel Energy PLC

29 October 2015

29 October 2015

Genel Energy plc

Sale of interest in Chia Surkh PSC

Genel Energy plc ('Genel') is pleased to announce the sale of a 20% participating interest in the Chia Surkh Production Sharing Contract ('PSC') to Petoil Inc ('Petoil').

As consideration for the sale of the 20% interest, Petoil will carry Genel's share of the costs associated with the Chia Surkh-12 ('CS-12') appraisal well. The total cost of the CS-12 well is estimated at c.$50 million, with drilling expected to commence in Q1 2016. The drilling will help refine the contingent resource estimate for the Chia Surkh licence, which is currently estimated at 250 million barrels of oil equivalent.

On completion of the transaction, which is subject to Kurdistan Regional Government ('KRG') approval, Petoil will transfer $10 million to Genel in the form of security which will be released at different stages of well operations in accordance with cash calls, well completion and testing. The operatorship of the Chia Surkh PSC will also transfer from Genel to Petoil for the duration of the CS-12 well.

On completion, Genel will have a 40% participating interest in the Chia Surkh licence, with Petoil at 40% and the KRG at 20%.

-ends-

For further information, please contact:

 
 Genel Energy 
  Phil Corbett, Head of Investor 
  Relations 
  Andrew Benbow, Head of Public 
  Relations                         [phone] 
 
 Vigo Communications 
  Patrick d'Ancona                  [phone] 
 

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). The Company, with headquarters in London and offices in Ankara and Erbil, is the largest independent oil producer and the largest holder of reserves and resources in the Kurdistan Region of Iraq and, through its Miran and Bina Bawi gas fields, is set to be a cornerstone provider of gas to Turkey under the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue further growth opportunities within the Middle East and Africa. For further information, please refer to www.genelenergy.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 29, 2015 03:00 ET (07:00 GMT)