Genel Energy PLC (GENL)
Genel Energy PLC: Trading and operations update
12-May-2022 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
12 May 2022 Genel Energy plc Trading and operations update Genel Energy plc ('Genel' or 'the Company') issues the following trading and operations update ahead of the Company's Annual General Meeting ('AGM'), which is being held today. Bill Higgs, Chief Executive of Genel, said: “Our robust financial position continues to strengthen, supporting investment in our organic portfolio as well as our progressive dividend. Despite the result of Sarta-5, the well delivered useful data that we will incorporate together with the results of our next well, Sarta-6, into our forward plans for the field. As we look to add production and further bolster our progressive dividend and create value for stakeholders, we continue to review both organic and inorganic opportunities.” FINANCIAL PERFORMANCE PRODUCTION Net production of 30,520 bopd in Q1 2022, in line with guidance Zero lost time injuries or Tier 1 losses of primary containment in Q1 2022 Tawke PSC (25% working interest) Gross production of 106,470 bopd in Q1 2022, 26,620 net to Genel, of which Peshkabir contributed 64,500 bopd and Tawke 41,970 bopd A high level of activity was maintained at Tawke in Q1 2022, with five wells spud across the Tawke and Peshkabir fields, with a fourth drilling rig set to be added The Peshkabir-Tawke gas project has captured 12 billion cubic feet of otherwise flared gas, equivalent to 766,000 tonnes of CO2 equivalent, since start up in mid-2020 through the first quarter of 2022. Phase 2 is a $25 million expansion underway at the Tawke field to capture breakthrough gas, set to start in the fourth quarter of 2022. The operator, DNO, is also debottlenecking the Peshkabir gas plant originally designed for 50,000 bopd to handle larger volumes of associated gas from higher field production, which is now averaging 65,000 bopd
Sarta (30% working interest and operator) Gross production of 5,590 bopd in Q1, 1,670 bopd net to Genel Sarta-1D was brought onto production on 8 March from the Mus and Upper Adaiyah reservoirs, the same zone on production at Sarta-2. On well test at Sarta-1D the Lower Adaiyah produced at low oil rates with a high water cut while oil was discovered in the Butmah, achieving flow rates of over 1500 bopd, but again with a high water cut. Since coming onstream, production from the Mus and Upper Adaiyah reservoirs at Sarta-1D has been choked back in order to manage pressure decline between the two adjacent take points of Sarta-1D and Sarta-2, and water cut at Sarta-1D Total field production has averaged c.6,150 bopd in May, as we continue to work through a programme to optimise production from the three producing wells Sarta-5 testing completed on 9 May and the well is now suspended. As previously stated, the presence of oil associated with both the primary and secondary Jurassic reservoir intervals, 12 km southeast of the Sarta pilot EPF, will be subject to further investigation and integration into the joint venture’s understanding of the Sarta field and future planning Test results from the Sarta-6 well, c.6 km to the west of the pilot EPF, are expected in Q3
Taq Taq PSC (44% working interest and joint operator) Gross production of 5,070 bopd, 2,230 bopd net to Genel As the margins at Taq Taq have increased, planning is underway for the resumption of drilling, with a well expected to spud around the end of 2022
PRE-PRODUCTION Qara Dagh (40% working interest and operator) Somaliland (51% working interest and operator) Morocco (75% working interest and operator)
ESG Genel’s 2021 Sustainability Report has been issued today, detailing our environmental performance and the positive impact that we strive to have on the communities in which we operate. 2021 highlights include: 11 social investment and community projects funded and delivered in 2021 Zero waste to landfill from operations at Sarta, with 92% recycled Renewable energy feasibility study progressing at Sarta
Genel is marking twenty years of operating in the KRI with its Genel20 programme, increasing the scope of our social activities, including a new education initiative set to be launched next week at an event in Dohuk
2022 OUTLOOK AND GUIDANCE Guidance reiterated, with production for 2022 at around the same level as the 2021 average The Board is recommending the approval of a final dividend of 12¢ per share (2021: 10¢ per share) at today’s AGM, a distribution of $33.5 million, as we continue to fulfil our aim of paying a progressive dividend
-ends- For further information, please contact: Genel Energy Andrew Benbow, Head of Communications | +44 20 7659 5100 | | | Vigo Consulting Patrick d’Ancona | +44 20 7390 0230 |
This announcement includes inside information. Notes to editors: Genel Energy is a socially responsible oil producer listed on the main market of the London Stock Exchange (LSE: GENL, LEI: 549300IVCJDWC3LR8F94). The Company is one of the largest London-listed independent hydrocarbon producers, with an asset portfolio that positions us well for a future of fewer and better natural resources projects. Genel has low-cost and low-carbon production from the Sarta, Taq Taq, and Tawke licences in the Kurdistan Region of Iraq, providing financial resilience that allows investment in growth and the payment of a material and progressive dividend. Genel also continues to pursue further growth opportunities. For further information, please refer to www.genelenergy.com
|
Yahoo Finance