">
http://www.rigzone.com/news/article.asp?a_id=114250&hmpn=1

THIS STOCK QUALIFIES FOR YOUR ISA.


Photo's of Ber Bahir where black is thought to be oil?

http://db.tt/nrmRjZ5D

THE LARGEST PRODUCER IN KURDISTAN, 41000bopd,with 1.4BBO of which 356MBO are P1 &P2.
http://www.investegate.co.uk/genel-energy-plc-%28genl%29/rns/completion-of-acquisition/201301231000021850W/
The operator with 40% interest (GKP 40&)in Ber Bahir.
From a recent RNS released by GKP ,

13th Dec 2011
Ber Bahr-1 Exploration Well

The first exploration well on the Ber Bahr block has drilled to a measured depth of 1,765 metres at the top of the Triassic with hydrocarbons indications observed in the well. Wireline logging is underway which will be followed by running of 9 5/8" casing. The well will then continue drilling to the estimated TD of 2,100 metres.

Also a note from the broker stated that was similar to early Shailhan wells,if so WOW?

Approx 335mtrs to go of which oil plays are part of,so news is close?

http://boards.fool.co.uk/vallares-gkp-12355098.aspx?sort=whole#12355179
http://www.investegate.co.uk/Article.aspx?id=201203080700149278Y
http://www.investegate.co.uk/Article.aspx?id=201203200700206495Z
http://www.investegate.co.uk/Article.aspx?id=201203210705107420Z
http://www.moneyam.com/action/news/showArticle?id=4422402
http://www.moneyam.com/action/news/showArticle?id=4430165
http://www.moneyam.com/action/news/showArticle?id=4431708
http://www.genelenergy.com/admin/resimler/detay_resim/Half_Year_Results_23082012_FINAL.pdf
http://www.investegate.co.uk/genel-energy-plc-%28genl%29/rns/trading-and-operational-update/201301180700068414V/
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/bina-bawi-update/201304041105015272B/
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/chia-surkh-discovery/201304100700069624B/
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/half-yearly-report/201307310700115294K/
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/declaration-of-commerciality-for-miran/201309030700110610N/
http://www.moneyam.com/action/news/showArticle?id=4668698
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/update-re--tawke/201310140708553997Q/
http://www.moneyam.com/action/news/showArticle?id=4739145
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/krg-exercises-back-in-right-to-miran-psc/201402241100037720A/
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/full-year-results/201403060700146386B/
http://www.investegate.co.uk/genel-energy-plc--genl-/rns/agreement-for-development-of-miran-and-bina-bawi/201411130700268995W/
http://www.moneyam.com/action/news/showArticle?id=4962310
HTTp://news.sky.com/story/1419273/ex-bp-boss-hayward-lures-monaghan-to-genel
http://uk.advfn.com/news/UKREG/2015/article/67672862

The period also saw Vallares, then a £2 billion vehicle for Hayward and City financier Nat Rothschild, merge with Turkish firm Genel, one of the leading players in Kurdistan

http://www.rigzone.com/news/article.asp?a_id=113672

http://www.macquarie.com/dafiles/Internet/mgl/msg/iConference/documents/Europe/ExplorersAgenda.pdf

http://www.thesundaytimes.co.uk/sto/business/Industry/article852517.ece

Tony Hayward will this week tighten his grip on Iraq’s sought-after Kurdish oil region with the acquisition of a controlling stake in another big oil field.

Genel Energy, the London-listed oil explorer run by the former BP chief executive, is already the largest producer in the region. The company is expected this week to announce a $70m (£45m) deal to buy a 40% share of the Chia Surkh block in the southeast corner of Kurdistan from Longford Energy, a small Canadian firm.

The move is the latest in a land grab that has broken out in the semi-autonomous region of northern Iraq. Kurdistan’s resources were ignored during the rule of Saddam Hussein but the regional government has signed exploration deals with more than 40 companies. Several made big finds but do not have the expertise or money to bring them into production.

Some have put themselves up for sale or are looking for partners with deep pockets.

Hayward formed Genel last year by merging a cash shell he set up with Nat Rothschild to acquire oil businesses with Genel Enerji, a Turkish firm that was one of the earliest entrants into Kurdistan.

Hayward has called it the last great oil frontier and said he wanted to acquire several others to create its biggest independent producer.

Interested ramped up further last year when Exxon Mobil, the world’s largest company, became the first oil major to acquire licences.

Genel already owns 20% of the Chia Surkh block, which covers more than 1,000 sq kilometres.

Other potential targets include DNO International, a Norwegian firm that is part owner of Genel’s two main producing fields. Hayward expressed interest in doing a deal with the company last year.

Genel declined to comment.

.

Min try clicking in the link above box,gives direct access.

http://www.investegate.co.uk/Article.aspx?id=201201100700322754V

.

BB i also topped up this am as i thought the 2nd pipeline news to be very significant indeed,that add to some earlier in the week on a dip at 257p. I think that will be my last
as i;m v overweight here.

Reflection after my last purchase(283p).

GKP seems to be a no brainer,a racing cert? So what odds if it were a race?

The bid figures mentioned arie from £8,£10,£14 and £17.

£8 i make 7/4 If you bought £4000 worth of shares at todays close of 285p

that would 4000/2.85 = 1400* 8 = £11200 7/4 = £1100.

The other odds are £10 - 5/2 £14 = 4/1 and £17 = 5/1,so reward to risk is a lot
different now and perhaps the large numbers(pounds as against pence)tend to
cloud the true value?

Mine you a whole lot better than interest rates,but what i'm trying to say is their are other companies offering excellent value,which in turn spreads the risk?
AIMHO

Investec bullish on Genel Energy as Kurdistan risks diminish
10:58 am by Sergei Balashov Genel's 2012 drilling programme is targeting more than half a billion barrels of oil of unrisked reserves
Investment bank Investec (LON:INVP) says the political and financial risks in Iraqi Kurdistan are shrinking, which bodes well for oil explorers operating in the region such as Genel Energy (LON:GENL).

Investec analyst noted Stuart Joyner sees the recent news flow from the semi-autonomous Kurdistan region of northern Iraq as positive with export payments being processed and ExxonMobil (NYSE:XOM) signing exploration contracts in the region.

“Whilst a permanent Oil Law for the country as a whole is a ways off yet, we are cautiously optimistic that the political and financial risks are diminishing and it is against this backdrop that Genel's growth will come,” said Joyner.

The 2012 drilling programme planned by Genel, which is led by former BP (LON:BP.) boss Tony Hayward, is targeting more than half a billion barrels of oil of unrisked reserves.

According to Joyner’s estimates, the Genel’s production, mainly from Taq Taq and Takwe fields, could double to 260,000 barrels of oil equivalent per day net to the group.

Furthermore, he said the current estimate of the company’s resource base of 1.3 billion barrels of oil equivalent is “conservative” and the 2012 drilling programme represents an organic upside of 85 pence per share.

The analyst has set a target price 1,175 pence for Genel based on a Brent crude price of US$100 per barrel, a substantial premium to Thursday’s closing price of 746 pence.

This estimate does not include potential M&A activity, while Genel has US$2 billion in the bank that it could spend on value enhancing acquisitions.

Calling Genel an “obvious regional consolidator”, Joyner named Longford Energy, Shamaran, Dana Gas and Heritage Oil (LON:HOIL) as possible takeover targets for the group.

http://www.investegate.co.uk/Article.aspx?id=201201160700235811V

From Mansooreo on the uva bb


They have halted drilling at BB1 as they have hit a major reservoir.
testing is due to start soon.

all from my guy, take it for what it is worth but he has never been wrong so far.

he also stated a while back that this is bigger than shaikan and has reiterated that

more later hopefuly.

By Ben Lando of Iraq Oil Report
Published January 18, 2012

Genel Energy announced this week that it is taking over the entire foreign stake in Iraqi Kurdistan's Chia Surkh block, becoming one of the biggest oil operators in the north – and also inaugurating a new phase of oil development for the semi-autonomous region.

Until recently, Kurdistan has focused on signing companies to dozens of exploration blocks; now, with nearly all the open space doled out, the region is likely entering a season of consolidations and acquisitions, and Genel has emerged as its most bullish backer.

A British-Turkish mid-level player led by ex-BP chief Tony Hayward, following a November merger between Hayward's Vallares and the Turkish firm Genel Enerji, Genel is armed with a $1.9 billion buyer's fund. It's betting that the Kurdistan Regional Government (KRG) can overcome a slew of challenges and continue to climb a steep path of development that will turn the company's early investment in an up-and-coming oil sector into major holdings.

"For what we consider a very good price," Hayward said in a statement, "they give us 80 per cent of a high-quality asset in one of the last great hydrocarbon provinces accessible to international investors."

Investment in Kurdistan does not come without big risks, however. The KRG is still locked in a dispute with the central government, which claims sole authority to sign oil contracts and has called the Kurdish contracts illegal.

The central government controls both the flow of oil through export pipelines and the flow of revenue from oil sales, so the commercial success of Kurdistan's contracts depends on the uncertain prospect of cooperation between leaders in Baghdad and the Kurdish capital of Erbil.

Despite that friction, the KRG has set a production goal of 1 million barrels per day (bpd) within five years, and is on track to hit more than 310,000 bpd by the end of the year, up from about 180,000 bpd now. That number varies along with different assessments of nationwide infrastructure and political issues; according to a new report by Canadian oil firm Western Zagros, the KRG has production capacity of 254,000 bpd now, and will hit 419,000 bpd capacity by the end of this year with seven fields producing. Western Zagros's Sarqala block has 5,000 bpd capacity.

Genel will have a hand in much of that. Its largest project in Kurdistan so far is the Taq Taq oil field, which Genel is developing in a joint venture with Sinopec's Addax under a contract first signed in 2002, and from which at least 75,000 bpd are now being produced. That crude is both sold on the local market and trucked to entry points on Iraq's northern export pipeline to Turkey, at Khormala in Erbil or Feyshkhabour in northern Dohuk province.

Pending approval by the KRG and the respective companies, Genel will raise its stake in Chia Surkh from 20 to 80 percent by buying out two companies – taking the Canadian company Longford Energy's 40 percent share, for $68 million ($26 million of which will go to pay bills due to KRG), and buying the Turkish firm Petoil Petroleum's 20 percent, for $26 million. The KRG will retain 20 percent stake.

Much is left to be explored in Chia Surkh. Genel, in a statement, said there are estimates of 300 million barrels of oil equivalent, though that claim isn't qualified yet. “Operations are already in train for an exploration well this year," Hayward said in a statement. "We anticipate further drilling over the next two years as we conduct a comprehensive exploration program to fully evaluate the block.”

Genel also has a junior stake in Norwegian DNO's Tawke field project, which averages around 70,000 bpd of production now but is targeting at least 100,000 bpd this year.

And Genel is the operator of the Ber Bahr block, and junior partners in DNO's Dohuk block and Heritage's Miran block.

Despite the exuberance of investors, one key issue has slowed development in the KRG: payments to contractors.

In January 2011, Iraqi Prime Minister Nouri al-Maliki and KRG Prime Minister Barham Saleh (who is likely leaving office within days or weeks) agreed that the KRG would begin exports averaging 100,000 bpd and receive 50 percent of those exports' revenues to pay the back costs of the companies. These payments would supplement the 17 percent of state revenue already distributed to the regional government.

Under this agreement, the central government has transferred some funds for contractors' costs. But leaders in Baghdad say it's up to the KRG, as signatory to the contracts, to pay the oil companies any profits.

Iraq as a whole averaged 2.7 million bpd in production last month and is looking to hit 3.5 million bpd this year as new export systems are brought online and KRG output increases.

The proposed 2012 budget has KRG fields increasing to an average 175,000 bpd of exports, but KRG officials have told Iraq Oil Report that new drafts of the law have removed the 50 percent redistribution clause, which KRG officials will not agree to.

These disputes are playing out amidst an all-out breakdown in the political scene. The fault lines divide mostly by sectarian identity, between Maliki's Shiiite-led government and his uneasy coalition partners in the Sunni-backed Iraqiya bloc.

Iraqi politics are also complicated by competing ethnic interests. Kurdish officials say the Arab-majority central government has reneged on separate deals to move forward a draft oil law and to begin the process of resolving disputes over tracts of land claimed by Arabs, Kurds and Turkomen. (The Chia Surkh block falls at least partly within the disputed territories but is currently completely administered by the KRG.)

Despite the political uncertainty, investors have become even more excited about Kurdistan since October, when ExxonMobil – which has a massive deal with the central government for Basra's West Qurna 1 oil field – signed production sharing contracts for six Kurdish blocks.

The central government has thus far blacklisted any KRG-signed contractor from deals in the rest of Iraq, but Exxon's move into Kurdistan represented the company's bet that Baghdad's hard-line policy is unsustainable. The resulting controversy has certainly given both Baghdad and Erbil an incentive to reconcile Iraq's two oil sectors.

Moreover, Exxon's decision to sign with Kurdistan underscored not only confidence in the region but also the urgency of the opportunities there. If the world's most profitable company is investing in Kurdistan – and if the available blocks are dwindling – then it stands to reason that companies might rush to land deals before there's nothing left.

On the strength of such speculation, rumors have been swirling. Gulf Keystone seems a likely target for an acquisition, and any number of big names could make the move – ExxonMobil, Chevron, ConocoPhillips, Eni, Total, Gazprom, TNK-BP, TPAO, Lukoil, KNOC, all have been mentioned by industry insiders and spectators. Such companies might also take up the handful of remaining unsigned blocks, buy into other currently signed blocks, or takeover smaller companies altogether.

"There is intense interest right now and multiple companies are looking to enter the market," said one expert with extensive knowledge of the KRG energy sector. "Through 2012 you're going to see additional consolidation and that's highlighted by the deal announced this week by Genel."

Industry publication MEES is suggesting Norway's Statoil wants out of its junior stake in the West Qurna II project (Lukoil operated) to move up north. Platts, another industry news and data outlet, is suggesting China's Sinopec is looking to expand its presence.

Like Longford – which was slowing down its administrative operations for months before the Genel purchase – Canada's Shamaran is responding to poor exploration in its Pulkhana and Arbat blocks by suspending its work and "examining options to re-focus."

"We've had players leave the region," said the industry insider. "I think that's because those types of companies didn't have the wherewithal to fully develop the assets here."

Anticipating boom times, Kurdistan is moving forward with an infrastructure expansion to match the eventual mainstreaming of its industry.

The Taq Taq Operating Co. (TTOPCO – the Genel/Addax consortium) is expected to award an engineering, procurement and construction contract by the end of first quarter 2012 for an estimated $400 million pipeline from the field to Feyshkhabour, allowing Taq Taq to reach at least 200,000 bpd in two years.

Bermuda-registered Gulf Keystone Petroleum is exploring financing of the pipeline to send crude from Shaikan, one of three blocks the company is invested in. That field, which is generating near 5,000 bpd now while well testing and development continue, is pegged for a 440,000 bpd capacity.

Not all of that crude will be sent abroad, as the KRG advances its domestic refining ambitions. The Erbil refinery, operated by the Kar Group, is expanding from 40,000 bpd capacity to 80,000 bpd, at least 20,000 bpd of which is expected to be commissioned by the end of the year, said Najim Hadi, director general of the refinery.

The Qaiwan Group, also a Kurdish company, is expanding the 20,000 bpd capacity Bazian refinery in Sulaimaniya to 35,000 bpd, and installing a gasoline train for unleaded gasoline.

The region's topping plants and black-market refineries have at least a 65,000 bpd refining capacity, though the government has cracked down on those of late.

The KRG plan is to reach 300,000 bpd refining capacity in five years.

On the strength of such speculation, rumors have been swirling. Gulf Keystone seems a likely target for an acquisition, and any number of big names could make the move – ExxonMobil, Chevron, ConocoPhillips, Eni, Total, Gazprom, TNK-BP, TPAO, Lukoil, KNOC, all have been mentioned by industry insiders and spectators. Such companies might also take up the handful of remaining unsigned blocks, buy into other currently signed blocks, or takeover smaller companies altogether.

No mention of Afren as a target ?

That would be soooo good.,.

Look who's accumilating?

http://uk.advfn.com/news/UKREG/2012/article/50927894

RNS Number : 8198W
Genel Energy PLC
06 February 2012



Genel Energy plc



Capital Markets Day



Genel Energy plc will be hosting a Capital Markets Day presentation in London on the afternoon of Thursday 23 February 2012.



Tony Hayward, Chief Executive Officer of Genel Energy will deliver a presentation on Group strategy and set out milestones for 2012. There will also be operational, pipeline and exploration updates following the first 90 days since the Genel Energy listing. Other members of the Group's senior management will also be present.



A live webcast will be available on our website (www.genelenergy.com) on the day, and will be available for download with the presentation from the day shortly afterwards.

Photobucket
http://thesharehub.com/?p=5453

Not long to wait for BB's news,lets hopeit's postive?

..Questor share tip: Hayward's Genel is a speculative buy

By Garry White | Telegraph – 1 hour 47 minutes ago



Turkish oil group Genel Enerji, which was privately owned by businessmen Mehmet Emin Karamehmet and Mehmet Sepil, reversed into Vallares last year.

Vallares was a cash shell floated by financier Nathaniel Rothschild, Julian Metherell, an ex-head of Goldman Sachs (NYSE: GS - news) 's UK's investment-banking division, and Tony Hayward, the former chief executive of BP. The aim was to buy global oil assets. Vallares is the sister company of Vallar (Frankfurt: A1C189 - news) , now known as Bumi, which was set up to invest in the mining sector. Each of the "founders" of Vallares was awarded generous founder share packages worth millions of pounds.

Genel is the largest oil producer in the semiautonomous Kurdish region of Iraq. There is still no agreement on an Oil Law that will allow revenue-sharing with the Iraqi central authorities. This means that only limited oil can be exported into higher-priced foreign markets. Genel sells most of its oil in Kurdistan.

CORPORATE GOVERNANCE

Foreign companies with large stakes owned by individuals readily prompt corporate governance concerns when they come to London.

Genel has addressed this by getting together the "Manchester City" of boards - with the majority of its directors independent and most of them City heavyweights.

These independent directors include grandees such as independent chairman Rodney Chase, who has served on the boards of Petrofac (EUREX: P2FF.EX - news) and BP; senior non-exec Jim Leng, the ex-chairman of Corus; George Rose, the former finance director of BAE Systems (LSE: BA.L - news) , and Sir Graham Hearne, former chairman of Enterprise Oil and current chairman of Catlin Group (LSE: CGL.L - news) .

Also, the founders of Genel, Mr Karamehmet and Mr Sepil, have together had their voting rights limited to less than 30pc. Their shares are locked in for two years and Genel has first right of refusal to buy the shares on their sale, so it can dispose of the stake in an orderly manner.

DIVERSIFICATION IS THE NEXT STEP

The shares have moved lower partly because more than half of the company's market capitalisation - $1.9bn (£1.2bn) - remains in cash. As any saver knows, cash is currently a lowyielding asset.

Last week, management made it clear that the Kurdish operations will be self-financing. Cash generated there will be used for the company's exploration programme in the region, which aims to book more oil reserves. Increasing reserves will, in turn, increase the value of the Kurdish assets - and the valuation of Genel. Wells drilled in the region have an exceptional 70pc success rate.

Genel's oilfields, which include Taq Taq and Tawke, should generate operating profits of $250m to $300m this year, management says.

Genel therefore does not plan to spend any of its $1.9bn cash pile in Kurdistan. It argued that valuations are too high and instead it is looking towards the wider Middle East and Africa for assets .

WHY A SPECULATIVE BUY?

There is no doubt that Genel's management and assets are high-quality.

Mr Hayward is a geologist who knows his "rocks" and Mr Sepil is a deal maker with lots of contacts in the key Middle Eastern regions.

Mr Hayward said on Thursday that, although the Middle East region was in flux, new relationships were being developed and the Turkish origins of the business could help in contact building. Genel's headquarters is in Ankara.

However, Kurdistan still has unresolved issues, especially the Oil Law, and its neighbours, Syria and Iran, are international pariah states. The Kurds' relationship with Turkey can also be strained.

There is no guarantee that management can find the right asset at the right price, which will continue to be a drag on the share price.

However, everything is in place for the company to start heading towards its ambition of being a major global independent oil company.

..

http://www.investegate.co.uk/Article.aspx?id=201203010700484447Y

Genel Energy plc

1 March 2012



Update on Chia Surkh



On 16 January 2012, Genel Energy plc ("Genel Energy") announced that it had entered into transactions with Forbes & Manhattan (Kurdistan) Inc. (a subsidiary of Longford Energy Inc.) ("F&M") and Petoil Petroleum to increase Genel Energy's interest in the Chia Surkh block in the Kurdistan Region of Iraq from 20 per cent to 80 per cent and to become Operator of that block (the "Transactions").



The announcement confirmed that the Transactions are conditional on the receipt of various consents, approvals and assurances, including from the Kurdistan Regional Government. The application before the Kurdistan Regional Government Oil and Gas Council remains pending, and all parties continue to work with the Government to secure final approval for the Transactions.



Genel Energy will update the market in due course when it has greater visibility on timing for completion of the Transactions.

Genel Energy plc

5 March 2012





Genel Energy plc



Drilling Update - Miran West-3 well



Genel Energy plc ("Genel Energy") notes that Heritage Oil Plc ("Heritage"), as operator of the Miran Block in the Kurdistan Region of Iraq, has today issued the following press release:



"Heritage has completed well testing and wireline log evaluation of the Lower Cretaceous reservoir in the Miran West-3 well and is currently at a depth of 2,910 metres.



Testing in the Lower Cretaceous formation resulted in no measurable flow of hydrocarbons to surface due to the lack of an extensive connected fracture network at this location. The results from detailed wireline log interpretation, observations whilst drilling and gas recovered at surface confirm that the Lower Cretaceous reservoir formation is gas bearing. Detailed work is being undertaken on the recently processed 3D seismic and offset well data to establish the areas of effective reservoir for this formation.



Below the Lower Cretaceous reservoir the well encountered a high pressure interval as well as a loss of circulation which resulted in the need to sidetrack the well. This interval has now successfully been drilled and the well is currently at a depth of 2,910 metres and being logged.



Further drilling will appraise the Jurassic reservoir intervals which were discovered by the Miran West-2 well. A number of tests are planned and drilling is expected to be completed within the next couple of months.



A second rig to drill the Miran East-1 well is on location and expected to commence drilling shortly."



Tony Hayward, chief executive of Genel Energy said:

"The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure - integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning."

specifically - Vallares, the investment vehicle run by the former BP chief exec-utive Tony Hayward, bought Genel Energy, the Kurdish-focused explorer, in September, while the AIMlisted Gulf Keystone’s exploration success in the region is set to catapult it into the FTSE 100. But the HSBC analysts warned that political pitfalls lay ahead, as politicians in Baghdad have declared oil explorers’ contracts in Kurdish Iraq illegal, because they were signed in the absence of a formal oil law

8 March 2012



Genel Energy plc



Commencement of drilling operations on Miran East-1 exploration well



Genel Energy plc ("Genel Energy") notes that Heritage Oil Plc, as operator of the Miran Block in the Kurdistan Region of Iraq, has today issued the following press release:



"Drilling of the Miran East-1 exploration well has commenced with an estimated target depth of c.4,000 metres. This is the first well to be drilled on the highly prospective eastern structure, which has an area of approximately 130 square kilometres. The well is targeting exploration potential within the Cretaceous and Jurassic reservoir intervals of the eastern structure, contiguous with the hydrocarbon bearing Miran West structure. The well design utilises recently acquired 3D seismic data and the enhanced understanding of the structural configuration within the Miran Field that this has provided.

Drilling of Miran East-1 is expected to take approximately seven months with multiple intervals to be evaluated and tested as the well is drilled."

Tony Hayward, chief executive of Genel Energy said:

"The Miran East-1 exploration well is being drilled on a separate structure from the existing Miran discovery and has the potential to add significantly to our resources. The spudding represents the latest well in the extensive exploration programme that we are undertaking over the next 12 months in the Kurdistan Region of Iraq, aimed at adding some 700 million barrels to our resource base."

RNS Number : 1969Z

Genel Energy PLC

12 March 2012

Genel Energy plc

13 March 2012

Genel Energy plc

Update on analyst meeting for Preliminary Results

As previously announced Genel Energy plc will be announcing its preliminary results for the period ending 31 December 2011 on Tuesday 20 March 2012.

Please note that a conference call for analysts and investors will be held at 11am on the day, replacing the meeting at the offices of Goldman Sachs announced on 22 December.

http://www.investegate.co.uk/Article.aspx?id=201203200700206495Z

http://dalesmann.com/1waving-from-advfn/

http://newsworthy.yolasite.com/genel-in-pipeline-talks-to-boost-kurdish-output.php

Successful completion and testing of Tawke-16 well



Genel Energy plc ("Genel Energy") notes that DNO International ASA ("DNO"), as operator of the Tawke Field in the Kurdistan Region of Iraq, has today issued the following press release:



"DNO announced today that its just-completed Tawke-16 well in the Kurdistan Region of Iraq flowed at a cumulative rate in excess of 25,000 barrels per day of 26-27º API gravity oil from multiple, independently tested zones. The Company expects to connect the well to existing pipeline and processing facilities by mid-April, boosting the Tawke field's deliverability.



The Tawke-16 well was designed to probe and appraise the undrilled northern flank of the Tawke field. It reached total depth of 2,369 metres and encountered over 350 metres of gross continuous oil column in the Cretaceous interval of the Tawke field. The well was spud in late December 2011 and the cost to drill, complete and test the well was under $7 million.



DNO International will continue to actively develop the Tawke field, with the goal of establishing

100,000 barrels per day of sustainable deliverability before year end. Tawke-16 is the first of four wells targeting the Cretaceous interval that the Company plans to drill in 2012, while a fifth, Tawke Deep, will also penetrate the deeper Jurassic and Triassic intervals in the field later this year."



Bijan Mossavar-Rahmani, DNO's Executive Chairman said:

"The Tawke-16 test exhibited exceptional flow characteristics and confirmed the reservoir quality and productivity of the northern extension of the Tawke field. In fact, based on these test results, Tawke-16 likely is the most prolific well drilled so far in this field by the Company."



Tony Hayward, chief executive of Genel Energy said:



"This is a very encouraging result. The successful completion of testing at Tawke-16 has further substantiated the quality of the Tawke field and the potential resource upside that we believe to exist. Genel Energy remains committed to increasing the size and the scale of our existing business in the Kurdistan Region and this result, along with the extensive exploration programme of 7 high impact wells over the next 18 months, is a good step to achieving that aim."

Quite a poor performer this stock, but wonder if it may be worth watching once the Iraq/Kurd issue is resolved.

Been watching this, think I might jump onboard right about now.

Thats me out for a small gain, would have liked to have stayed in longer however future margins not so nice on this one!

From the GKP thread

niceonecyril - 15 Jul 2012 21:31 - 3361 of 3368
Chevron apparently confirmed (almost - next week?) in Kurdistan - with Total apparently to follow with Western Zagros (as per Noble Trader?)

Sunday times article - on subscription - copy below - interesting times ahead???

81339.ece

http://www.thesundaytimes.co.uk/sto/business/Industry/article1081339.ece

Oil giant’s Kurdish deal defies Iraq

Danny Fortson Published: 15 July 2012
Recommend (0) Comment (0) Print
CHEVRON is to become the latest oil giant to thumb its nose at Baghdad and buy into Kurdistan, the semi-autonomous region of Iraq locked in a protracted battle with the central government over oil rights.

The American company is in advanced talks to buy the rights to two exploration zones from Reliance Industries, the Indian conglomerate controlled by billionaire Mukesh Ambani.

The deal, thought to be worth at least $200m, could be announced this week.

It will be a boost for Tony Hayward, the former BP boss whose London-listed group, Genel Energy, is already the largest producer in the region.

Kurdistan has been at loggerheads with Baghdad since 2004, when it began inviting western groups in to look for oil. Baghdad said the exploration deals were illegal and threatened to blacklist any firm that dealt with the Kurds.

Companies found vast fields, however, drawing the attention of the world’s biggest producers. Exxon Mobil shocked Baghdad last year when it signed an agreement for half a dozen Kurdistan exploration blocks.

It is understood that Total, the French giant, is also in talks to buy a stake in fields owned by Western Zagros, a small independent listed in Canada. It is understood that at least part of the share would come from the Kurdish government, which has a large equity holding.

The rush of industry giants into the sector comes amid growing frustration with the bureaucracy and political in-fighting that has hampered development of Iraq’s giant fields in the south.

Genel does not plan to tie its future entirely to the region. The company is scouring Africa for exploration opportunities and plans to unveil a portfolio of new assets within the next couple of months.

StockMarketWire.com
Genel Energy's acquisition of a 23% interest in the Bina Bawi exploration licence has been approved by the Kurdistan Regional Government Oil and Gas Council.

Genel Energy is making the acquisition through the purchase of all of the share capital of A&T Petroleum Company, a subsidiary of Petoil Petroleum and Petroleum Products International Exploration and Production Inc.

Genel Energy chief executive Tony Hayward said: "We are pleased that the transaction has now completed, allowing us to acquire an interest in this high-quality acreage in an area immediately adjacent to Taq Taq, one of our major established fields.

"Genel Energy remains focused on deepening its interest in the Kurdistan Region and we look forward to the exploration and appraisal programme planned for Bina Bawi for the rest of this year and next."

http://www.moneyam.com/action/news/showArticle?id=4422402


RNS Number : 3847J
Genel Energy PLC
06 August 2012

Genel Energy plc

6 August 2012


Genel Energy plc


Genel to acquire an additional interest in the Bina Bawi exploration block


Genel Energy plc ("Genel Energy" or the "Company") announces that it has agreed to acquire an additional 21 per cent interest in the Bina Bawi exploration block in the Kurdistan Region of Iraq from Hawler Energy Ltd (the "Transaction") for $240 million, to be paid from the Company's existing cash resources.


The Transaction is in addition to the Company's acquisition of an initial 23 per cent interest in the Bina Bawi block, which completed on 3 August 2012 (together the "Acquisitions").


The Bina Bawi exploration block is in the centre of the Kurdistan Region of Iraq and covers an area of 240 square km. It is 50 km to the east of Erbil and is the adjacent block to Genel Energy's producing oil field Taq Taq. To date, 2 of the 3 exploration wells drilled on the block have encountered significant hydrocarbons. The most recent well, Bina Bawi-3, encountered a gross hydrocarbon column of more than 800 metres in the Jurassic zone and two Jurassic reservoir intervals tested separately achieved an aggregate flow rate of more than 4,000 barrels a day of light, 44 to 47-degree API oil. A further gross hydrocarbon column, estimated at over 1,000 metres, in the Triassic zone of Bina Bawi-3, remains untested but confirmed the gas find made in the first well in 2007. The overall results of Bina Bawi-3 continue to be reviewed, including the evaluation of deeper potential targets in the Triassic reservoirs. An extended well test will commence towards the end of the year. There are two further appraisal wells planned on the block this year. The Bina Bawi discovery is estimated to contain contingent resources of between 500 million to 1 billion boe.



Upon completion of the Acquisitions, Genel Energy will hold a 44 per cent. working interest in the PSC, OMV (Operator) will hold a 36 per cent. working interest and the KRG will retain a 20 per cent. working interest which is carried by the contractors pro rata to their PSC entitlements.


The Transaction is conditional on the receipt of approval from the Kurdistan Regional Government.


Commenting on the transaction, Tony Hayward, Chief Executive Officer of Genel, said:


"This acquisition gives us a material interest in a third major oil and gas development (alongside Taq Taq and Tawke) and reinforces Genel's leading position in the Kurdistan oil and gas province. It is consistent with our strategy of continuing to build our Kurdistan business through selective acquisitions and our ongoing exploration drilling programme."


For further information, please contact:

Genel Energy plc

Julian Metherell

Natalie Fortescue



+ 44 20 7659 5100

M: Communications

Patrick d'Ancona

Andrew Benbow


+44 20 7920 2340

I'm in today @680p.

Are you looking to hold long term mitzy, or just a quick punt? Am planning to have a stake in GENL in preference to others who intend to develop Kurdistan, but no spare cash atm.

Yes Harry will hold lt.

Worth between 1200p and 1500p a share imo.

could break 700p this time.

http://www.hurriyetdailynews.com/iraq-lost-fight-against-arbil.aspx?pageID=238&nid=27479&NewsCatID=348

Broken through 700p barrier.

is this a one trick pony?

Yes at the moment.
"The Company`s primary assets are oil and gas licences located in the Kurdistan Region of Iraq. Genel Energy plc has an interest in six Production Sharing Contracts (PSCs) with the Kurdistan Regional Government and is the largest producer of oil and the largest holder of reserves in the Kurdistan Region with interests in the Taq Taq and Tawke fields. The Group also has an exciting exploration portfolio across its six PSCs which it aims to drill over the next 12-18 months." (From their website).

Harry thanks for that, so are you saying its a bet on Kurdistan settling with Baghdad?

Much like GKP and others.

Tipped in todays Telegraph.

Questor shares tip: Genel is a speculative buy
Tony Hayward's oil vehicle Genel has seen its share price plunge. Questor thinks the shares are a speculative buy.
By Garry White
7:00AM BST 12 Aug 2012

Genel Energy
695p
Questor says SPEC. BUY

Genel, the oil investment vehicle headed by Tony Hayward, the former chief executive of BP, has been unloved by the stock market.

Since its purchase of Turkish oil group Genel Enerji, which owns producing and exploration assets in the Kurdistan region of Iraq, the shares have plunged by a third. The company is also backed by financier Nathaniel Rothschild and its finance director is Julian Metherell, a former Goldman Sachs partner.

Genel had $1.8bn (£1.15bn) of cash when it gave its last trading update. Last week it spent $240m buying an additional 21pc interest in a Kurdish oilfield called Bina Bawi to bring its stake to 44pc. This means that about 78pc of its current market capitalisation is backed by cash in the bank.

Indeed, part of the reason for the underperformance has been the "cash drag". Money sitting in a bank earns little return at the moment and the market has been waiting for a big acquisition.

However, Genel is the largest oil producer in the semi-autonomous region of Iraq. No agreement on an oil law with the Iraq central government has been reached, but there are signs that progress is being made on exporting more oil to Turkey.

Reports suggest discussions with the Kurdish and Turkish governments may result in the construction of a pipeline.

Questor recommended the shares as a speculative play in February when they were at 828p, but they have continued to fall. However, a canny M&A deal will be just the catalyst the share price needs. Genel is a speculative buy.

Up 30p first thing this am.

Terrific rise in the sp. Sadly it's going without me as fully invested elsewhere! Selfishly hoping for a pullback sub 700p!

Its never too late Harry.. Merril Lynch have a 1200p target.

http://www.moneyam.com/action/news/showArticle?id=4430165

Heritage up 20% well done to holders.

Genel to farm in to Sidi Moussa Offshore Block, offshore Morocco and assume operatorship

Genel Energy announces that it has agreed to farm in for 60 per cent of the licence interests to explore for and produce oil and gas in the Sidi Moussa Offshore Block, offshore Morocco ("Sidi Moussa")(the "Transaction"). As part of the Transaction, Genel Energy will assume operatorship.

http://www.moneyam.com/action/news/showArticle?id=4431686

Genel Energy to farm in to Area 4 (Blocks 4,5,6 & 7) Offshore Malta

Genel Energy announces that it has agreed to farm in for 75 per cent of Mediterranean Oil and Gas Plc's (MOG) licence interests to explore for and produce oil and gas in the Area 4 Offshore Malta ("Area 4")(the "Transaction").

http://www.moneyam.com/action/news/showArticle?id=4431687

Update on acquisition of additional interest in the Miran Block

On 21 August 2012, Genel Energy announced that it had entered into a sale and purchase agreement to acquire an additional 26 per cent interest in the Miran exploration block in the Kurdistan Region of Iraq (the "Miran Block") from Heritage Energy Middle East Limited ("HEME") (the "Acquisition").

Genel Energy today announces that, following discussions with the Ministry for Natural Resources in the Kurdistan Region of Iraq, Closing took place under the sale and purchase agreement yesterday. Following such Closing and formal approval of the Acquisition by the Regional Council for the Oil and Gas Affairs of the Kurdistan Region - Iraq, Genel Energy will, combined with its existing holdings, have a 51 per cent working interest in the Miran Block.

Genel Energy and HEME have agreed to establish a new joint venture company for the purposes of managing the Miran Block, to be held between them pro rata to their working interests in the field. HEME will transfer the operatorship of the Miran Block to the new vehicle within 60 days.

Simultaneously, Heritage Oil Plc ("Heritage") drew down $294 million from its bilateral loan with Genel Energy, the terms of which were previously announced on 21 August 2012. The Loan is made on standard commercial terms and is secured against both Heritage's interest in the share capital of HEME and Heritage's working interest in the Miran Block.

Half year results:
http://www.moneyam.com/action/news/showArticle?id=4431708

Highlights
· Expanded our position as the leading independent oil and gas producer in the increasingly attractive Kurdistan Region

· Development plans on track to deliver material production capacity growth at both Taq Taq and Tawke - currently 76,000 bopd (net), targeting 140,000 bopd (net) in 2014

· Construction of the new export pipeline infrastructure in the Kurdistan Region underway

· Appraisal programme delivering results; Net 2P reserves increased by 14% to 468 mmbbls following significant reserve upgrade at the Tawke field

· Significant resource additions acquired in the Kurdistan Region: 44% interest in Bina Bawi and additional interests in Chia Surkh (40%) and Miran (26%), adding over 500 mmboe of net contingent and prospective resources with significant upside

· 2012-13 major exploration programme of 7 high impact exploration wells targeting 650 mmboe of unrisked resource potential, proceeding to schedule

· Established a high impact African exploration portfolio through the acquisition of material positions in Somaliland, Morocco, Cote d'Ivoire and Malta (circa 25,000 km2 net exploration acres)

· Free cash flow positive in the first half, with capital expenditure on the exploration, appraisal and development programme in the Kurdistan Region funded entirely from operating cash flow

· Good progress in building operating and technical capability.

Outlook
· Average net working interest production for the full year expected to be circa 40,000 bopd, excluding any export sales. Sales revenue guidance for 2012 remains at circa $250-$300 million

· Continuing progress on the appraisal and development programmes at Taq Taq and Tawke to deliver production capacity growth and resource additions

· Exploration programme to continue throughout 2012: completion of additional testing on Peshkabir 1 and Ber Bahr 1, key wells to be spudded at Taq Taq Deep, Tawke Deep and Chia Surkh 10

· Significant cash resources of circa $1 billion (post the Bina Bawi and Miran acquisitions and the Miran loan) available for future acquisitions

· Pursuing further opportunities to deepen resource potential in the Kurdistan Region at the same time as geographical diversification through the acquisition of a high impact exploration portfolio within the Middle East and Africa.

Its all happening harry.

Yes. The 'one trick pony' has now expanded considerably. Can't decide if the market is due to correct soon though, so just waiting & watching this one for the moment.

Nice to see some geographical diversification, although I very much like this share, the fields, and the management, Kurdistan is geographically and politically a high risk play. This is why I've taken short term profits and exited the stock. No doubt I'll be back though for another spread. Not something I'd buy equity in however just yet.

Good luck if your holding stock and no doubt rises will come as and when Baghdad soften their stance on the region.

Well worth the time listening,also presentation in the header.

http://www.genelenergy.com/index.php?sf=video&k=287

Bouncing off the 700p level.

By Peg Mackey

ARBIL, Iraq (Reuters) - Iraq and its Kurdish region both have too much at stake not to settle their dispute over oil, although they may take a year or so to do it, the head of the largest producer there said.

"The scale of the opportunity for Kurdistan and for Iraq is so large that there will be a resolution," Genel Chief Executive Tony Hayward, former boss of BP, said in an interview.

"Over the next year or two, Kurdistan production capacity will grow towards 1 million barrels a day - that's too much oil to be shut in as a consequence of a political dispute. So one way or another, it's going to get resolved."

Kurdistan's oil can be shipped to world markets through a Baghdad-controlled pipeline from Kirkuk to the Turkish port of Ceyhan.

The Kurdistan Regional Government (KRG) halted exports in April in a dispute over payments from Baghdad to companies working in the region. It restarted them, but warned it would cut shipments by mid-September if there were no progress on payments.

"We'd like to be exporting and believe strongly that over the next year or so, if not well before, that resolution will be arrived at," Hayward said in the telephone interview.

London-listed oil explorer Genel, the first to arrive in the mountainous region, has complained that it has not been paid for the majority of oil exported in 2009 and 2011. Other operators have voiced similar grievances.

But Hayward said if exports were to stop, production from the Taq Taq and Tawke oilfields - where it is involved - would be sold into the domestic market.

That local business - which fetches about $60 (37.6 pounds) a barrel, well below that on world markets - would be enough to keep both projects in the money. "Very much so," he said.

Taq Taq is now pumping 105,000 bpd. Tawke is running at 70,000 bpd, but should be up to 100,000 bpd by the end of the year.

Baghdad says it has the sole power to export oil. But Kurdistan has signed exploration oil deals with foreign companies, contracts Baghdad says are illegal.

Taq Taq and Tawke are the backbone of KRG exports, between them contributing roughly 80,000 barrels per day of an overall 120,000 bpd. Khurmala, the northernmost part of the giant Kirkuk oilfield, makes up the remainder.

A new pipeline linking Taq Taq to Khurmala - the entry point to the Iraq-Turkey pipeline - is expected to be up and running by October, easing delivery of the oil to world markets. Crude from the field is now transported by tanker trucks.

"If there's an agreement between Baghdad and Erbil to continue exports, then Taq Taq will be tied directly to the export infrastructure," said Hayward.

In the meantime, KRG energy minister Ashti Hawrami - aiming to reduce the region's energy reliance on Baghdad - is carrying out plans to export oil and gas directly to Turkey, just to the north.

GAS PROSPECTS

Apart from its oil plays, Anglo-Turkish Genel - its longer term sights on Turkey's gas market - is also building up its position in Kurdish gas. It splashed out $450 million last month on a stake in the Miran gas discovery and also acquired a piece of the Bina Bawi gas discovery.

"The Kurdistan Regional Government has made it very clear that they would like to see gas in Kurdistan exported to Turkey, so building a gas business in Kurdistan focused on both the domestic market in Kurdistan but also the Turkish export market makes a great deal of sense," said Hayward.

Genel spent more than $700 million last month to bolster its position in Kurdistan. Hayward said the company could take on more, but acknowledged that options were now limited.

"If we see opportunities where we can create a lot of value, then we'll continue to add," he said. "But there's been a lot of consolidation in the course of the last nine months and the opportunity set is undoubtedly diminishing."

The Genel chief has also been trying to diversify the firm's sources of oil, recently taking acreage in Morocco and Malta. It has earmarked around $1 billion to buy further assets.

"We've said we'll focus on the Middle East and Africa and that's what we're doing," said Hayward. Genel was formed last year when Hayward and financier Nathaniel Rothschild's bid vehicle bought Turkey's Genel Enerji.

In Kurdistan, Hayward expects to see further consolidation. Oil majors Chevron, Total and Gazprom have joined Exxon with their own deals in there, provoking warnings from Baghdad that those with oil deals with the federal government might be at risk.

"The supermajors have moved in - we haven't got much room for many more, frankly," he said.

"We'll see further consolidation and the emergence of half a dozen serious operators - of which Genel will be one."

(Editing by William Hardy)

Thanks for that cyril.

place cursor on gkp for video.

http://www.iii.co.uk/tv/episode/gulf-keystone-and-genel-kurdistan%E2%80%99s-big-winners

that was interesting indeed..... assuming a respectable start to the week, shall prob buy some of these

surprised Hayward has managed to generate quite a following after the costly and still unsettled mistakes made on his watch at BP.

good comment hali, but it is the company and not the man one would be buying ..... however, it is clearly pretty illiquid (200k daily average) so care required

I have a feeling that TH is very good at his job. His PR skills are poor which is why he now keeps a very low profile, but although Macondo was technically on his watch, it's just not possible to watch every single aspect of a drill, hence the art of delegation. I find it interesting that BP had enough faith in TH not to make him the sacrificial lamb but to shuffle him off to TNK-BP out in the wilds of Russia for a cooling down period. But they obviously thought that he was good enough to persue the Kurdistan angle, which could be huge for the major players. Presumably a scenario where his business skills outweighed his PR skills. Imo, he is sharp, aggressive and astute. I wouldn't want him as a friend, but I would (& will) invest in his company.

have looked at L2 and have decided to avoid as far far too illiquid for my liking

Chart fantastic.

http://dinarvets.com/forums/index.php?/topic/128605-breaking-news-progress-in-krg-baghdad-oil-talks/page__st__80?s=77a327e79d8b7aaed59ae807d30fb519#ixzz26W9hAViX

Good find cyril and Genel are a winner all the way with a possible 250k a day production in the next 12 months.

I'm holding.

"Gulf Keystone and Genel rise on Iraq deal"

Gulf Keystone Petroleum and Genel Energy shares rose after Iraq's central government resolved a dispute with semi-autonomous Kurdistan over oil revenues from the region, where both companies have assets. The agreement will lead to an increase in Kurdish oil production. Shares in GKP rose 6.2pc and Genel, run by ex-BP chief executive Tony Hayward, rose 3.7pc.

Questor tips them in the Telegraph today..

I believe they could be worth 1000p this year.
My banker.

Good close and chance of gains next week...classic chart.

Edit: moneyam had up30p at close.

Market remains unconvinced.

Great share with more to come..

I'm adding.

Amazing. Not great volume but it just keeps on going up. Sadly have missed the early boat. Smiling all the way to the bank, mitzy?

I am confident of 900p Harry.

one of the reasons i avoid this little star is because it is pretty illiquid

Genel Energy is pleased to announce that the Chia Surkh 10 exploration well was spudded on 7 October 2012.

The Chia Surkh 10 well is the first exploration well to be drilled on the Chia Surkh exploration block whichcovers an area of 984 square kilometres in the southern part of the Kurdistan Region of Iraq and has prospective resources estimated at more than 300 million barrels of oil equivalent.

The well is designed to test the Lower Miocene to Palaeocene section. It is anticipated that the well will be drilled to a total depth of approximately 2,500 metres and results are expected in the first quarter of 2013.

Genel Energy is the operator and has a 60% operated interest.

http://af.reuters.com/article/commoditiesNews/idAFL6E8L8B4520121008?sp=true

Full on here.

http://www.investegate.co.uk/Article.aspx?id=201210100700043273O

Market emains unconvinced.

One of the best aim shares atm.

it is indeed, but from a CFD point of view, it is very margin-greedy relative to GKP, which is why i stick with the latter

A great week for Genel but good luck with GKP.

Broken 800p best.

Unbelievable! Hit 800p already and shows no sign of stopping atm!

Yes Harry its rising every day by 1% thats the way.

No stamp duty for these shares is great.

Cor, mitzty, I should think you are eyeing up something sleek and sporty with the money you are making here! 900p looks possible, though that may be a consolidation point.

Lol Harry..

900p within sight and then back to ipo price of 1000p I believe.. still time to buy.

Increible performance and no sign of a fall back.

Yet! That looks a bit too far, too fast. Don't lose it all mitzy.

One of the directors bought 160k at 800p thats the reason Harry.

This coming from a regular poster,make of it what you will??


a little bird tells me BP looking at GENEL.

Possible?

Reply to the q where from?


Ex business associate.

Is that a Director Deal at Genel?Hmmm.

Don't own any but looking closely.

BP have a few bob in the bank I see.

You may be right about BP we will see.

would BP and their shareholders really wish to become re-associated with Tony Hayward? ...... merely an observation

This director who bought 160k now has a total of 400k thats in the co..its enough.

A great week for all connections.

StockMarketWire.com
HSBC has downgraded its recommendation on oil producer Genel Energy (LON:GENL) to "neutral" from "overweight" as the recent price movement has taken the shares beyond the broker's target price. The City broker has increased its share price target to 830 pence from 816 pence.

Isable this one.....which is nice...one thing that Iraq and Kurdistan have : is oil and loads of it....

ah well, if the russians spark off a war in iraq as MrP promisesis a racing certainty within a very short time (it moves about a bit), then all our stocks - except those in FI of course - will be worthless

A another C&P.


TH gave a lecture tonight at a posh school here is a report about it from iii

23:47
Re: first gkp mini meet
onlookout
1

Yep, was good meeting up - a really enthusiastic group (as you might expect) and a pleasure to meet you all.

It was a 1/2 hr lecture with 1/2 hr of Q/A's, so we were somewhat limited to what questions we could pitch, especially given it was a mix of school/general public and not Pi centric. After the first Iraq specific question he did say 'ah, we have some people that know about oil here'

Interestingly he did mention Kurd independence when he first touched on Iraq, but then backtracked and clarified he didn't mean independence......and this was before he knew their were PI's in the audience. He did joke about someone from Bloomberg or Reuters being in the audience, but didn't realize that exposure to the GKP/BB would probably be worse!

As Claws mentioned, one question we DID get to him was a view on how the KRG/Bagdad thing would pan out, with the answer that Iraq would probably end up splitting up into its different sects. He answered without any hesitation, as though he really believed this view.

After the finish he had a few hangers-on in his vicinity - plus the entire 14-ish GKP/BB entourage! On congratulating him about his talk, and the lighthearted suggestion that some of our GKP proceeds would probably be coming to Genel, he suggested GKP had probably reached close to its valuation at £2.25. My interpretation at this point was that he simply couldn't have the conversation!

Please feel free to correct/add to anything I've said.

ww.investegate.co.uk/Article.aspx?id=201211010700130379Q

Are BP having a look..?

Not expecting a bid quite frankly at least not for a year or two.

More news today.

Genel Energy again expands Morocco footprint
8:27 am by Jamie AshcroftGenel has a 75% stake in Mir Left and will be the operator





Anglo-Turkish oil firm Genel Energy (LON:GENL) has again expanded its footprint in Morocco.

It has signed a petroleum agreement with the Office National des Hydrocarbures et de Mines (ONHYM) for the Mir Left Offshore Block.

Genel has a 75% stake and will be the operator of the new offshore block, while ONHYM retains a 25% stake.

Initially Genel must acquire a minimum of 400 square kilometres of 3D seismic data and drill one exploration well over a three year exploration period. Beyond that there are two further exploration periods – for three and two years respectively.

"We are delighted to have signed this new block, further deepening our position in the fairway associated with the proven working petroleum system in offshore Morocco,” said John Hurst, Genel’s chief operating officer for Africa.

“We intend to commence the acquisition of 3D seismic in January 2013, with the aim of drilling our first well in 2014."

Mir Left spans 3,259 square kilometres, in water depths of 60 to 320 metres, and lies immediately adjacent to the Sidi Moussa block.

Morocco could be big in time.

Certainly a lot of interest in that part of the world at the moment.

Making up for last week.

Making up for last week.

http://www.investegate.co.uk/genel-energy-plc-%28genl%29/rns/receipt-of-export-payment/201212031104105629S/

http://www.thenational.ae/thenationalconversation/industry-insights/energy/genel-in-kurdish-oil-link-to-turkey

Lost it's gloss and good for a short imo.

Looks like a bounce from here.

Are you still holding mitzy, or did you take profit?

Still in Harry.

Hmmmm.....don't lose it all. Stock looking less attractive now, imo.

I'll hold for a while yet.

My share tip in 2013.

http://ikjnews.com/?p=3699

StockMarketWire.com
Liberum Capital starts Genel Energy at hold, target 850p

A good update.

StockMarketWire.com
Genel Energy expects revenues to be ahead of previous guidance and all development and exploration activities in Kurdistan to be funded from cash flow generated locally in line with its stated strategy.

Genel Energy's average net working interest production for 2012 was in line with guidance at 44,500 barrels of oil per day (2011: 42,000 bopd).

During the course of the year production from Genel Energy's two producing assets, Taq Taq and Tawke, has been sold into both domestic and export markets.

Chief executive Tony Hayward said: "2012 saw a strong production performance and a materially expanded exploration portfolio which will provide us with significant opportunities in 2013, both in the Kurdistan Region of Iraq and Africa."

Genel Energy completes the acquisition of the remaining 49% interest in the Miran Block
Genel Energy announces that closing has taken place on its acquisition of the remaining 49 per cent participating interest in the Miran exploration block in the Kurdistan Region of Iraq (the "Miran Block").

On 12 November 2012, Genel Energy announced that Heritage Oil Plc ("Heritage") issued the Exchange Repayment Notice signifying its intention to repay the $294 million loan made by Genel Energy to Heritage in August 2012 through the transfer of Heritage's remaining 49 per cent participating interest. The transfer was subject to the approval of Heritage's shareholders in a general meeting and, among other customary closing conditions, receipt of relevant approvals being granted by the Regional Council for the Oil and Gas Affairs of Kurdistan.

Following closing and formal approval of the transfer by the Regional Council, Genel Energy now owns 100 per cent participating interest in the Miran Block (75 per cent working interest post KRG back-in right) and has become the sole operator.

StockMarketWire.com
JP Morgan Cazenove has reviewed it stance on the UK Exploration & Production sector today highlighting the fact that the sector had underperformed the broader market up to the end of the year. This reappraisal has led the US bank to downgrade a number of stocks in its coverage including SOCO International (LON:SIA) , Serica Energy (LON:SQZ), Genel Energy (LON:GENL) and Afren (LON:AFR) which have all been downgraded to "neutral" from "overweight". The City broker cut its price targets across the board reflecting its downbeat near-term outlook, which included: SOCO International - reduced to 418p (from 420p), Serica Energy - reduced to 47p (from 50p), Genel Energy reduced to 940p (from 1,060p) and Afren reduced to 195p (from 210p) In a note issued to clients today, analyst James Thompson said: "On a more structural theme, we see the relatively easy access to acreage that E&P companies have enjoyed for a decade coming to an end as big oil steps up the hunt for resources. Near term, we lower our exposure to political risk, particularly in the MENA region, and instead turn our focus to the exploration story that remains the sector's lifeblood."

Seems to have lost it's gloss for the moment. On my watch list though, ready for a bounce.

Preliminary audited results for the year ended 31 December 2012
Genel Energy plc, the London listed exploration and production company and largest independent oil producer in the Kurdistan Region of Iraq, announces its preliminary audited results for the year ended 31 December 2012.

Highlights
· Consolidated our position as the leading independent oil and gas producer in the increasingly attractive Kurdistan Region

· Current production capacity of circa 80,000 bopd (net), with 2012 average net working interest production of 44,500 bopd in line with guidance

· Significant resource additions acquired in the Kurdistan Region: 44% interest in Bina Bawi and additional interests in Miran (75%) and Chia Surkh (40%), adding over 750 mmboe of net contingent and unrisked prospective resources

· High impact African exploration portfolio established with material positions acquired in Somaliland, Morocco, Malta and Côte d'Ivoire, targeting net unrisked prospective resources of over 3.3 billion boe

· Substantial growth in resource base: Proven and probable reserves (2P) increased to 445 mmboe (2011: 412 mmboe), total working interest reserves and unrisked resources increased to 5.4 billion boe (2011: 1.6 billion boe)

· Free cash flow positive for the year, with capital expenditure on exploration, appraisal and development in the Kurdistan Region of Iraq funded entirely from strong operating cash flow of over $300 million

Outlook
· Continuing progress on the new export pipeline infrastructure in the Kurdistan Region (construction of first phase operational in first quarter 2013)

· Average net working interest production for 2013 expected to be in the range of 45,000 - 55,000 bopd, generating revenues of $300-400 million dependent on the level of any export sales

· Appraisal and development programmes at Taq Taq and Tawke on track for 140,000 bopd (net) production capacity in 2014

· Kurdistan exploration programme comprises 4 high impact wells targeting over 750 mmboe gross unrisked resources in 2013: Tawke Deep and Chia Surkh 10 currently drilling, Taq Taq Deep to be spudded in Q1 and Chia Surkh 11 in Q2

· Appraisal programmes underway on both Miran and Bina Bawi, targeting Final Investment Decision on phased development of both fields by the end of 2013

· Work programmes underway across African portfolio to develop prospect inventory; advanced negotiations to secure a rig for the drilling programme on going with first well targeted in Morocco in the fourth quarter of 2013

· Strong balance sheet with significant cash resources of circa $1 billion available for future business development.

28
Feb 2013
Tony Hayward to return to offshore drilling in 2013 as Genel eyes expansion
By News Teamin News
- See more at:http://www.directorstalk.com/tony-hayward-to-return-to-offshore-drilling-in-2013-as-genel-eyes-expansion/#sthash.MKB5B1fq.dpuf

February 28, 2013 5:38 pm

Turkey-Kurdistan oil pact imminent
By Michael Kavanagh

Tony Hayward, the former chief executive of BP who now leads London-listed Genel Energy, has predicted a formal agreement between Turkey and Kurdistan within months that will lead to full-scale exports from the oil-rich region of Iraq from next year.
His forecast of an imminent pact between governments in Ankara and Erbil to approve full-scale exports from the semi-autonomous territory came as Genel committed to further exploration in Kurdistan and north Africa.

Genel, along with several other early-stage producers who have struck deals with the Kurdistan Regional Government, remain locked in a stand-off with Iraq’s federal government in Baghdad that has challenged the legitimacy of licences granted by the regional government.
A compromise deal last September that led to a short-run resumption of exports through Baghdad-controlled federal pipeline system from Kurdistan has since collapsed leading the KRG to sanction small-scale exports of oil from fields to Turkey by tanker.
On Wednesday, Mr Hayward described the level of exports by tanker, running at no more than 5,000 barrels a day, as “symbolic for supply of exports between Turkey and the KRG”.
But he pointed to good progress in the building of a new pipeline capable of exporting up to 1m barrels of oil a day to the Turkish border that is expected to be operational by 2014.
“Some things are not in our control but we believe we will see interesting progress in the first half that will see full-blown exports in 2014,” said Mr Hayward.
His comments came as Genel reported its second annual set of results, which saw revenues jump from $24m to $333m following the cranking up of production that is largely consumed locally.
During the year the company committed about half of a $1.9bn net cash pile to extending its exploration and production assets though it still ended 2012 with net cash of $1bn.

Genel, which was created in 2011 when a £1.3bn cash shell created by Mr Hayward and financier Nat Rothschild floated and then bought Turkey’s Genel Enerji, ended the year with a production capacity of 80,000 barrels a day.
As it awaits the opportunity to export to more lucrative markets, Genel was commanding prices of between $70 and $80 a barrels for sales in the domestic market, said Mr Hayward.
He added that Genel would decide whether or not to embark on a return of funds to shareholders towards the end of the year after taking a “disciplined approach” to any further investments.
“We have no residual obligations [to return funds] from the time the company was set up,” he said. He also denied suggestions of any splits on the timing of any distribution of funds.
“The board is completely aligned behind the strategy of the company – there is no dissent between the founding shareholders.”
Shares in Genel, that floated at £10, slipped 13p to 746p on Thursday.

Completion of Sale Transaction with Genel Energy plc
Malta Offshore Area 4

Mediterranean Oil & Gas Plc (AIM: MOG) is pleased to announce that it has successfully completed the sale of 75% of MOG's shareholding in its wholly owned subsidiary, Phoenicia Energy Company Ltd ("PECL"), to Genel Energy plc ("Genel"). PECL owns the rights to exploration activity in Malta Offshore Area 4.

Under the terms of the sale agreement Genel has acquired MOG's 75% interest for the following consideration:

* An immediate cash payment of US$10 million;

* 100% carry of the cost for the first exploration well Hagar Qim 1, planned to be drilled to a minimum depth of 2,500 metres;

* 100% carry of the cost for the second exploration well up to a maximum of US$30 million gross expenditure;

* At MOG's option, should the costs of the second well exceed US$30 million, Genel will provide a financing arrangement to fund MOG's 25% share of any additional expenditure, at an interest rate equivalent to 3 Month Libor plus 400 bps.

1
Mar 2013
£50m profit for new Kurdistan oil firm Genel Energy could result in bid by giant, says ex-BP boss
By News Teamin News
- See more at:http://www.directorstalk.com/50m-profit-for-new-kurdistan-oil-firm-genel-energy-could-result-in-bid-by-giant-says-ex-bp-boss/#sthash.ruQbvssy.dpuf

StockMarketWire.com
Genel Energy, an independent oil and gas exploration and production company, has reported exciting potential at the Bina Bawi field in the Kurdistan Region of Iraq where it has a 44% stake.

OMV, the operator, last month carried out an extended well test and the contractor group has submitted a Declaration of Commerciality for the field to the Ministry of Natural Resources of the Kurdistan Regional Government (KRG).

The initial capacity of the EWT from Bina Bawi 3 is around 5,000 boe/d with the potential to expand beyond this level to approximately 10,000 boe/d, as future wells become available.

The Bina Bawi field, located east of Erbil, is operated by OMV which holds a 36% stake, 44% is held by Genel Energy and a further 20% by the KRG.

A further extensive testing programme is planned on the Bina Bawi 4 and 5 wells during the next few months and the contractor group will be moving ahead with the preparation of a Field Development Plan for submission to the Ministry later in the year.

Commenting, Charles Proctor, Head of Business Development for Genel, said: "We are very pleased to reach these important milestones as we progress the development of Bina Bawi, the next world class field in Genel's KRG portfolio. We will continue to work closely with the operator OMV, to fully appraise the potential of this exciting field as it moves towards full field development."

http://www.investegate.co.uk/genel-energy-plc--genl-/rns/bina-bawi-update/201304041105015272B/

Just a reminder,


Pipeline update

In response to continued industry exploration success, the KRG announced its pipeline infrastructure plans for the Kurdistan Region during 2012. In order to facilitate the export of its crude oil, it intends to construct a new 1 million bopd capacity pipeline to the Turkish border.

The first phase is nearing completion. The construction of a 20" pipeline from the Taq Taq oilfield to Khurmala is expected to be operational in the first quarter of 2013, giving Taq Taq access to the Erbil refinery and the existing Kirkuk to Ceyhan export infrastructure. The pipeline has an initial capacity of 150,000 bopd and has the potential to be increased to some 200,000 bopd with the addition of pumps. The second phase, a 1 million bopd capacity pipeline from Khurmala to the Fishkabur pump station on the border with Turkey, is expected to begin operating in 2014

GENEL ENERGY MAKES SIGNIFICANT OIL DISCOVERY IN FIRST CHIA SURKH WELL

The Anglo-Turkish oil and gas independent, Genel Energy, today announced that the first of five exploration wells it plans to drill this year in the Kurdistan Region of Iraq has made a significant oil discovery.

The Company said the Chia Surkh 10 well was drilled to a depth of 1,696 metres in the Oligo-Miocene section, and, in tests extending over several days, flowed at up to 11,950 barrels of oil a day and 15 million cubic feet of gas. The oil was 41 degrees API and well-head flow pressure 2,000 pounds a square inch.

Chia Surkh 10 was drilled on a large thrust-fault, controlled structure with up to 94 square kilometres of closure. A second drill-stem test is being planned for the Miocene section, after which the well will be suspended as a future producer.

Genel Energy chief executive Tony Hayward said the well confirmed the presence of 'a significant oil find' and that the Company had this week begun drilling a second well, Chia Surkh 11, to appraise the discovery.

"We intend to carry out a rapid appraisal and development programme and expect to have an early production scheme operating in the first half of 2014. Over the same period we will be evaluating and drilling a number of other prospects we have in the Chia Surkh licence," Hayward said.

"We are delighted at this level of success in what is the first of the five high-impact exploration wells we plan in the Kurdistan Region of Iraq during 2013. To have made a discovery of such potential materiality at this early stage is highly encouraging," Hayward said.

Chia Surkh 10 is the first exploration well to be drilled on the Chia Surkh acreage since 1954. The 985 square kilometre licence is operated and held 60 per cent by Genel Energy. The remaining 40 per cent is held equally between Petoil, Inc. and the Kurdistan Regional Government.

http://rudaw.net/english/middleeast/turkey/19042013

StockMarketWire.com
Deutsche Bank has issued a research note on Genel Energy (LON:GENL) today in which it increased its price target by 13 per cent to 1,230 pence per share (up from 1,090 pence). The City broker has reiterated its "buy" rating and reaffirmed Genel as one of its key picks in the European exploration and production sector.

Interim Management Statement

Genel Energy plc ("Genel Energy" or "the Company") issues the following Interim Management Statement for the period from 1 January 2013 to today. This statement is issued ahead of Genel Energy's Annual General Meeting, which is being held at 11.00am today at the Sofitel St James's, 6 Waterloo Place, London, SW1Y 4AN.

Highlights

PRODUCTION

· 2013 guidance unchanged: production at 45,000 - 55,000 bopd and revenue of $300 - 400 million

· Net working interest production for the first quarter averaged 37,000 bopd
o revenues in line with budget due to strong price realisations from domestic sales of around $70 per barrel
o Taq Taq and Tawke averaged 73,000 bopd and 18,000 bopd respectively, with volumes impacted by the New Year national holiday and maintenance work at Tawke

· Production capacity at key assets continues to grow:
o Taq Taq gross production capacity is currently 120,000 bopd, development drilling and processing capacity expansion continues and is on track to deliver capacity of 200,000 bopd in 2014
o Tawke gross production capacity is 100,000 bopd and is targeting 200,000 bopd by the end of 2014 with further development drilling underway.

http://www.moneyam.com/action/news/showArticle?id=4578612

StockMarketWire.com
Liberum Capital has upgraded its recommendation on Genel Energy (LON:GENL) to "buy" from "hold" as the company makes further progress in Kurdistan, ahead of the brokers expectations. The City broker has increased its price target by around 18 per cent to 1,000 pence per share (up from 850 pence).

GENEL ENERGY ANNOUNCES SUCCESSFUL ADDITIONAL TEST IN FIRST CHIA SURKH WELL

The Anglo-Turkish oil and gas independent, Genel Energy, today announced that a second drill-stem test carried out on the Chia Surkh 10 well has confirmed the existence of an additional oil bearing section.

The test was carried out over a 12 metre zone in a younger Miocene section than the the first drill-stem test, and flowed at sustained rates of 3,200 barrels of oil a day and 8.4 million cubic feet of gas. The oil was 38 degrees API and well-head flow pressure 2,550 pounds a square inch.

The successful completion of the second test on the Chia Surkh 10 well confirms that the presence of a significant oil discovery in Chia Surkh. As previously announced, the well will now be suspended as a future producer. The first appraisal well Chia Surkh 11 is already drilling on the same structure.

Genel Energy's Head of Exploration Dr John Hurst said: "The successful completion of the second test has further confirmed our belief that this is a significant oil find in the Kurdistan Region of Iraq. We will continue with our rapid appraisal and development programme, including the first appraisal well now underway and will be evaluating and drilling a number of other prospects we have in the Chia Surkh licence."

Chia Surkh 10 is the first exploration well to be drilled on the Chia Surkh acreage since 1954. The 985 square kilometre licence is operated and held 60 per cent by Genel Energy. The remaining 40 per cent is held equally between Petoil, Inc. and the Kurdistan Regional Government.

http://www.investegate.co.uk/genel-energy-plc--genl-/rns/rig-contract/201305010700106811D/

A summary of above:

StockMarketWire.com

Genel Energy has signed a drilling rig contract for its African offshore drilling programme with Noble Corporation.

The Noble Paul Romano deepwater, semi-submersible rig will be used to deliver a high impact drilling campaign over a 2 year period, starting in the last quarter of 2013.

The rig, which is currently undergoing a special 5 year class survey in Valletta, Malta, has a rated water depth of up to 1,800 metres and a drilling depth of approximately 7,500 metres.

AGR will be providing drilling management services.

Director Declaration

In accordance with Listing Rule 9.6.14, Genel Energy plc announces that Tony Hayward, Chief Executive Officer of Genel Energy plc, has been appointed Interim Chairman of Glencore Xstrata plc with immediate effect with the intention that he will step down once a new chairman takes up the role.

Up 40p and big volume.

StockMarketWire.com
Genel Energy has confirmed a commercial discovery following a successful side track of the original Ber Bahr 1 exploration well in the Kurdistan region of Iraq.

The Ber Bahr 1 well original TD was 3933m in the upper Permian Chia Zairi formation. It encountered good oil shows over a c.300m interval in the Jurassic. Two drill stem tests over this interval failed to flow.

The original well has now been successfully side tracked and in several tests, conducted over a period of days, achieved a sustainable flow rate of 2100 STB/ day of 15 API oil from the Middle Jurassic age Sargelu Formation. Head of exploration Dr John Hurst said: "The Ber Bahr well adds a further commercial oil discovery to Genel's already significant KRI resource base. We plan to begin a phased development of the field in the second half of this year."

Up 25p early.

Taq Taq to Khurmala Pipeline complete

Genel Energy and Addax Petroleum have completed the 70 km Taq Taq to Khurmala Pipeline in the Zagros Basin, northern Iraq.

The Taq Taq licence area covers approximately 951 sq km, and has 2P reserves of 607 MMbbl. It is located 60 km northeast of the Kirkuk oil field, adjacent to the city of Kirkiuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniyah.

Genel Energy states that there are 12 producing wells at Taq Taq, and the current production capacity of the field is 120,000 bbl/d, with plans in place to increase this to 200,000 bbl/d in 2014.

Front-end engineering and design (FEED) contractor OSD said that the project scope for the Taq Taq site included up to 1 MMbbl of oil storage in floating-roof tanks; pump systems; meters; office and warehouse facilities; and all utilities for the site such as fire water, power generation, control and SCADA systems; oily water treatment, and diesel storage.

The Taq Taq to Khurmala Pipeline system includes a fibre-optic cable with redundant satellite communications, emergency-shutdown systems, pigging facilities, and cathodic-protection systems.

OSD said that the 24 inch oil pipeline traverses high undulating terrain from Taq Taq to Kirkuk, with the route influenced by topography, river crossings and minefields. At its peak, the route rises to approximately 800 m. As part of the FEED requirements, OSD personnel completed field right-of-way and facilities site surveys in the remote Kurdistan region of Iraq.

The Taq Taq to Khurmala Pipeline, which was constructed by local company KAR, forms part of a larger infrastructure plan by the Kurdistan Regional Government, which is planning to construct a 1 MMbbl capacity oil pipeline to export oil from the Kurdistan region to the Turkish border. The first phase of this project is to connect Taq Taq to the Erbil refinery and the existing Kirkuk to Ceyhan export infrastructure. The second phase of this project is to link the oil fields in the Kurdistan region directly to Fishkabur on the Turkish border.

The plan aims to reduce the bottleneck on oil supplies via the previous export method. Previously oil was trucked approximately 135 km to Khurmala or 255 km to Fishkabur, where it was metered and pumped into the Kirkuk to Ceyhan Pipeline.

Genel Energy has now begun construction on the second phase from Khurmala to the Fishkabur pump station on the border with Turkey. The pump station will have an initial capacity of 300,000 bbl/d.

The second phase is expected to be in operation by 2014.

Genel Energy plc ("Genel Energy") notes that DNO International ASA ("DNO"), as operator of the Tawke Field in the Kurdistan Region of Iraq, has today issued the following press release:

"[The] deep Tawke-17 well tested 1,500 barrels a day of 26-28 degree API crude oil from an Upper Jurassic reservoir underlying the Tawke field in the Kurdistan Region of Iraq. Separately, the Tawke-20 well, the Company's first horizontal well in the Tawke field, has flowed an average of 8,000 barrels a day from each of the first four of ten fractured corridors penetrated by the well. Testing continues on both wells.

"We are very pleased that initial Tawke-17 results are in line with the Company's pre-drill estimates," said Bijan Mossavar-Rahmani, DNO International's Executive Chairman. "This discovery in the Sargelu formation, over 200 meters below the main field Cretaceous reservoir, likely bumps recoverable reserves on the Tawke license to the one billion barrel mark," he added.

Drilling of a second Tawke horizontal well continues on schedule. "If this second well, Tawke-23, demonstrates the significant deliverability uptick we are now seeing in Tawke-20, we will go back to the drawing board and consider further enhancements to our current target of 200,000 barrels a day of production capacity by 2015," Mr. Mossavar-Rahmani said. Last month the Company announced that it had met its previous goal of delivering 100,000 barrels a day from the Tawke field following 72 hours of well and facility tests.

The Tawke-17 well, the deepest drilled by the Company in the Tawke field, encountered several Triassic zones that proved either tight or water bearing. Two additional identified reservoir intervals in the Upper Jurassic remain to be perforated and tested."

Tony Hayward, Chief Executive of Genel Energy, said:

"Today's news reinforces the extremely positive first half of 2013 that Genel has had with the drill bit, with the company having three new discoveries in the Kurdistan Region of Iraq in the space of three months. We look forward to working with DNO to determine the full extent of the new discovery."

UBS note today:
"From a technical perspective Genel has had an excellent first half. Positive drilling results at Chia Surkh; Tawke Deep; Ber Bahr and Bina Bawi drive an 18% increase in our 3C NAV. Meanwhile, we feel risks around exports of oil and gas from Kurdistan are starting to diminish and do not see this as reflected in the stock’s discount valuation. The market is also currently ascribing zero value to fast approaching frontier exploration in Morocco (~100% upside) and Malta (~60%).

1) As early as September the converted Khurmala-Dohuk gas pipeline will allow Kurdistan to export an additional 300kb/d directly to Turkey (including 200kb/d from Genel’s Taq Taq field). 2) c.70kb/d of Kurdish oil has been reaching international markets by truck for several months with no apparent payment, legal or political issues. 3) Major IOC’s continue to build positions and foster links with Turkey and the KRG (c.f. Exxon’s deal with TPAO; Chevron drilling).

With Taq Taq and Tawke both hitting peak production capacity next year Genel is well positioned as exports ramp-up. Production grows from 44kboe/d in FY12 to 270kboe/d in FY17E (CAGR: 43%). Low development costs ($2-3/boe) of these conventional onshore barrels should allow its strong balance sheet to be maintained.

Core NAV: £7.26/sh (from £7.02); Core plus Contingent: £12.44/sh (£10.57); Risked: £14.22/sh (£12.09). Target set at 27% discount to NAV (prior 30%)."

July 23 2013, 11:49am

.It is also expected that Genel will drill its first horizontal wells at the Taq Taq field later this year.

Genel Energy (LON:GENL) growing production volumes from horizontal drilling in Kurdistan is exciting news, according to investment banking heavyweight UBS.

It revealed yesterday, by operator DNO, that the first horizontal well on Genel's 25% owned Tawke field produced 2.5 times more oil than the field's most productive vertical well.

The TK-20 well flowed at an equipment constrained 25,000 barrels a day, compared to a prior field record of 10,000 barrels.

Another two horizontal wells are now planned by DNO at Tawke, meanwhile it is also expected that Genel will drill its first horizontal wells at the Taq Taq field later this year.

According to UBS analyst Daniel Ekstein horizontal drilling could help add more than 200mln barrels of ‘possible’ reserves to Genel’s current 445mln barrels of ‘proved and probable’ reserves.

“The first horizontal wells were drilled in the 1920s but became more prevalent from the late 1980s. The technique is now commonly used to optimise drainage of fractured carbonate reservoirs such as those in Kurdistan,” Ekstein said in a note.

“The frantic early days of the Kurdish oil sector meant more rudimentary, cheaper and quicker approaches were adopted.

“As the industry moves into the development phase operators are increasingly focussed on application of more sophisticated technologies (advanced 3D seismic; directional and horizontal drilling; acid and hydraulic fraccing)."

Saturday, July 27th 2013

WHAT'S WORTH OWNING

Genel Energy (LON:GENL)

We can't get enough of Anglo-Turkish Genel, which is advancing like a hurricane in Kurdistan (discovery after discovery and amazing drilling success), and also faring nicely in Africa. Shares in the company have advanced almost 50% over the past year on success in Kurdistan, and now it's about to hit the roof as its crude oil pipeline nears completion and is slated to start pumping crude to Turkey by the end of September. There is a short window of opportunity here to get in while this is still a bit undervalued. (And there are a number of undervalued stocks operating out of Kurdistan).

Genel is the largest producer in Iraqi Kurdistan, and its holdings are impressive. We're talking about 7 production-sharing contracts with some nice geological diversity. Its largest producing fields in Kurdistan are Taq Taq and Tawke, which have an estimated gross proven and probable reserves of 1.4 billion barrels of oil and gross proven and probable reserves of 1.9 billion barrels. By 2014, Genel is aiming for a production capacity of 140,000 net bopd.

http://en.mercopress.com/2013/07/27/six-key-oil-gas-discoveries-of-2013-who-s-worth-owning

http://www.investegate.co.uk/genel-energy-plc--genl-/rns/half-yearly-report/201307310700115294K/

Added to header.

StockMarketWire.com
Genel Energy posts pre-tax profits of $109.1m for the six months to the end of June - up from $22.3m last time.

Revenues rose to $160.6m from $123.1m and cash flow from operating activities increased to $181.3m from $82.4m.

Chief executive Tony Hayward said: "Genel has had a strong first half of the year making material progress in exploration, appraisal and development. Success with the drill bit has added c.500 mmboe to our contingent resource hopper - an increase of more than 50% - while the development programmes at both Taq Taq and Tawke continue to build production capacity, and look set to benefit from the expected completion and operational start-up of the KRI export pipeline by year end.

"The appraisal success at Bina Bawi and Miran has created a transformational gas business and Genel, with our Turkish heritage, is uniquely placed to benefit from the KRG-Turkey Gas Sales Agreement which we expect to be signed by year end.

"The strong combination of operational and political momentum we are enjoying in the KRI will be further reinforced by an African exploration programme that will commence in the fourth quarter of the year. We have a lot to look forward to."

http://www.proactiveinvestors.co.uk/companies/news/59561/genel-energy-to-benefit-from-kurdistan-turkey-gas-deal-59561.html

http://cache.merchantcantos.com/webcast/static/ec2mc/4000/5275/9523/10962/Lobby/default.htm

StockMarketWire.com
Genel Energy has agreed to acquire a 40% interest in the Adigala block onshore Ethiopia from New Age (African Global Energy) Limited.

The consideration involves a payment in respect of back costs and a contribution to the cost of a 2D seismic acquisition planned before the end of 2013.

http://www.investegate.co.uk/genel-energy-plc--genl-/rns/declaration-of-commerciality-for-miran/201309030700110610N/

Genel Energy Given Neutral Rating at JPMorgan Chase & Co. (GENL)

Posted by admin on Sep 5th, 2013


Genel Energy logoGenel Energy (LON:GENL)‘s stock had its “neutral” rating reaffirmed by analysts at JPMorgan Chase & Co. in a research report issued to clients and investors on Wednesday, Stock Ratings Network reports.

Other equities research analysts have also recently issued reports about the stock. Analysts at Beaufort Securities reiterated a “speculative buy” rating on shares of Genel Energy (LON:GENL) in a research note to investors on Wednesday. Finally, analysts at Liberum Capital raised their price target on shares of Genel Energy (LON:GENL) from GBX 1,000 ($15.49) to GBX 1,150 ($17.82) in a research note to investors on Monday, August 5th. They now have a “buy” rating on the stock.

Four research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of GBX 1,154 ($17.88).

Shares of Genel Energy (LON:GENL) traded up 1.77% on Wednesday, hitting GBX 946.50. 273,952 shares of the company’s stock traded hands. Genel Energy has a one year low of GBX 700.00 and a one year high of GBX 1026.3199. The stock has a 50-day moving average of GBX 954.8 and a 200-day moving average of GBX 883.9.

Genel Energy plc, formerly Vallares PLC, is an exploration and production company. It is an independent oil producer in the Kurdistan Region of Iraq.


http://www.mideasttime.com/genel-energy-given-neutral-rating-at-jpmorgan-chase-co-genl/55953/

Genel Energy plc ("Genel Energy") notes that DNO International ASA ("DNO"), as operator of the Tawke Field in the Kurdistan Region of Iraq, has today issued the following statement on the field:

"DNO International ASA ("DNO International"), the Norwegian oil and gas company, announced today that it has commenced extensive testing of the Tawke-23 exploration well in the Kurdistan region of Iraq. The well is the second horizontal well drilled by the Company in the Tawke field and has encountered continuous oil shows within a 930 metre horizontal section in the main Cretaceous reservoir. The test program, expected to last up to three weeks, will focus on ten fracture zones with production potential.

The Company's first horizontal well in the field, Tawke-20, tested 8,000 barrels per day from each of ten producing intervals in the Cretaceous reservoir and is currently on stream at an average rate of 25,000 barrels per day.

Also currently drilling in Kurdistan are two other Tawke horizontal development wells, Tawke-21 and Tawke-22."

Cheers Harry,just updated the header.

Gas Sales and Purchase Agreement for Summail Field
Genel Energy plc ("Genel") is pleased to announce that, along with DNO International ASA ("DNO International"), it has signed a Gas Sales and Purchase Agreement with the Kurdistan Regional Government to supply gas from the Summail field in the Dohuk licence in the Kurdistan Region of Iraq. The gas will partially displace diesel currently used to generate electricity in a 500 MW power plant in the city of Dohuk located 40 kilometres from the field.

http://www.moneyam.com/action/news/showArticle?id=4670939

http://vimeo.com/73690334

Wednesday, October 02, 2013 by Ian Lyall

Citi paints a rosy picture of Kurdistan oil and gas as the export pipeline out via Turkey heads towards completion by the end of the year.

It reckons the traditional 20-25% discount applied to the value of companies operating in the semi-autonomous region of Iraq should unwind as this provides a means to monetise discoveries.

It also points out that gas agreements between Turkey and the Kurdistan Regional Government provides a further catalyst, particularly for companies such as Genel (LON:GENL), which is sitting on huge discoveries such as Miran and Bina Bawi.

Meanwhile, farm-ins and buy-outs will become a theme as majors (Exxon, Total et al) and the large independents (Hess and Marathon) start to become the dominant players in an oil province with a high success rate and which is very firmly low-cost.

“We continue to believe that the discount rate that the market ascribes to Kurdistan-focused names is too high,” said analyst Michael Alsford in a note to clients.

“While regional tensions (such as Syria) remain challenging, the strengthening relationship between Kurdistan and Turkey could see sustainable oil exports and the completion of long-term gas supply agreements over the next three to six months.

“We think this should lead to the discount rate ascribed to Kurdistan-focused names narrowing further.

“We also expect larger oil and gas companies will move to gain a greater exposure to the significant resource potential in Kurdistan, which sits in the first quartile of our global cost curve.”

Citi has Genel, Norway’s DNO International and Afren (LON:AFR) on its ‘buy’ list.

Great news,


By Khalid Al-Ansary
Oct. 3 (Bloomberg) -- Kurdistan Regional Government agrees
with Iraq central govt to link under-construction pipeline to
country’s main export link to Turkey, Ali Hussein Ballo, advisor
to KRG natural resources minister, says by phone.
• Kurds, Iraq central govt to hold negotiations to decide exact place where Kurdish pipeline would be hooked to the main Iraqi export pipeline, which runs from Kirkuk to Ceyhan in Turkey
• NOTE: Hussain al-Shahristani, Iraq’s deputy prime minister for energy affairs, said in Sept. 24 interview that central govt may cut oil revenue to Kurds if they bypass central authorities and start operating export pipeline on their own

HTTP://www.ekurd.net/mismas/articles/misc2013/10/state7370.htm?

Oil export pipeline near completion, KRG minister tells meeting at Conservative Party conference

October 3, 2013

MANCHESTER, UK,— A pipeline to export oil from the Kurdistan Region will be operational within a few months, Ashti Hawrami, the Kurdistan Regional Government Minister of Natural Resources, told a meeting at the Conservative Party conference on Wednesday.

'The new oil export pipeline from the Kurdistan Region is almost complete and is expected to be operational by the end of the year,' Dr Hawrami said. He added that he expects exports to reach 1m barrels per day by 2015 and 2m by 2019. ' We are helping the security and continuity of energy supply to the world,' he said.

He added, 'Sharing all oil revenues according to the federal constitution, and the economic independence of Kurdistan are the recipe for the unity of Iraq.'

The minister was speaking at a meeting addressing energy security, hosted by the KRG UK Representation. Other speakers were Nadhim Zahawi MP, Jane Kinninmont of the think tank Chatham House, analyst and consultant Shwan Zulal, and Bayan Sami Abdul Rahman, the KRG's High Representative to the UK. The meeting was chaired by Robert Halfon MP, vice-chairman of the All-Party Parliamentary Group on the Kurdistan Region.

Hawrami told an audience of Conservative Party members, diplomats, journalists, business representatives and analysts that Kurdistan Region's energy riches had been ignored or used against the Kurdish people under previous Iraqi governments. 'With the liberation of Iraq, a new era, an opportunity for sharing power and wealth, opened up in Iraq. The Iraqi constitution facilitates that but so far it hasn't been implemented,' he said.

The minister also noted that the KRG sees Turkey not just as a conduit for Kurdistan's oil and gas to Western markets, but also as a consumer and partner. Hawrami highlighted the role of British companies in the energy sector as well as in Kurdistan's growing economy generally. He encouraged British companies to continue to look at Kurdistan as a destination for their investment. 'We have a good relationship with Britain and there are lots of opportunities for British companies. It's a win-win situation.'

Bayan Sami Abdul Rahman spoke about the KRG's strategy of prioritising tourism, agriculture and industry in order to avoid over-reliance on the energy sector. She said that the Kurds were now a factor in the shaping of the Middle East, both in terms of energy security and political settlements.

Nadhim Zahawi, the first British member of parliament to be of Kurdish origin, told the meeting that groups like the Kurds could no longer be ignored by those wishing to establish peace in the Middle East. Jane Kinninmont said that the KRG would need to diversify its economy. 'I visited Kurdistan this year and spoke to young students who were keen that oil and gas is not wasted and that the economy doesn't over-rely on it. Economic diversification will be a very important aspect of Kurdistan's future,' she said.

Shwan Zulal described the Kurdistan Region as a viable source of energy to Europe and pointed out that the KRG hoped to have a minerals law in place in the near future, opening a new sector of the Kurdish economy.

While at the conference, which was held in Manchester, Minister Hawrami and Ms Abdul Rahman met several British ministers and MPs, including Alistair Burt, the Minister for the Middle East,www.ekurd.net Energy Minister Michael Fallon, Sajid Javid, Minister at the Treasury, and Lord Marland, the British Prime Minister's Trade Envoy who recently led a trade delegation to Kurdistan. They also met the Turkish ambassador in Britain, Ünal Çeviköz, who welcomed them to the Conservative Friends of Turkey reception at the party conference.

The KRG UK Representation also attended the annual conferences of the Labour and Liberal Democrat parties in September. The Representation hosted a discussion on Kurdistan at the Labour Party conference with Ian Lucas, Shadow Middle East Minister, the Labour peer Lord Glasman, Faik Nerwayi, the Iraqi Ambassador to the UK, and Gary Kent, director of the APPG on Kurdistan.

(SIX) The Kurdistan Regional Government, KRG has agreed to connect its pipeline to the existing between Iraq and Turkey, reports Bloomberg. The oil company ShaMaran Petroleum assets in Iraq Kurdistan. Andreas Johansson, tel 031-350 6483 andreas.johansson @ six-group.se SIX News

Genel Energy plc notes that DNO International ASA, as operator of the Tawke Field in the Kurdistan Region of Iraq, has today issued the following statement on the field:

"DNO International ASA, the Norwegian oil and gas company, announced today that it has initiated sales from its second horizontal well in the Tawke field in the Kurdistan region of Iraq following testing at a new record rate of 32,500 barrels of oil per day.

Each of ten independent fracture corridors penetrated by a 930-meter horizontal section in the Cretaceous reservoir interval flowed in excess of 9,000 barrels per day. Tawke-23 was spudded in May 2013 and the cost to drill, complete and test the well was $12 million. The first horizontal well completed in the field last July, Tawke-20, is located six kilometers away and set the previous record production rate for a Tawke well at 25,000 barrels per day. Both wells are subject to wellbore and surface facilities limitations.

Drilling operations are already underway at two additional horizontal wells, Tawke-21 and Tawke-22. Both are slated for completion by year-end 2013."

Genel Energy holds a 25% stake in the Tawke licence. DNO International holds a 55% interest in and operates the Tawke license. The Kurdistan Regional Government holds the remaining 20% interest.

Commenting today, Tony Hayward, CEO of Genel said:
"The outstanding result of the Tawke-23 horizontal well is further evidence of the world-class properties of the Tawke field. We look forward to the results of further horizontal drilling ahead of the significant planned increase in the field's production capacity."

Thanks Harry,added to the header. Still below(£10)the float SP.

Hayward Says Completed Pipeline Turning Point for Kurdistan
By Brian Swint - Oct 25, 2013 10:00 AM GMT

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Tony Hayward, the former BP Plc chief executive officer who now heads Kurdistan’s largest oil producer, said an export pipeline to Turkey is built, marking a turning point for the self-governing region of northern Iraq.

“The Kurdistan Regional Government has completed a 36-inch pipeline,” Hayward, CEO of Genel Energy Plc, said in a telephone interview yesterday. “The line has now been tied in and commissioning is taking place. This is a major inflection point for Kurdistan.”

Kurdistan, whose economy has boomed with oil exploration since the fall of Saddam Hussein in 2003, estimates its reserves at 45 billion barrels, enough to meet U.S. needs for almost seven years. The new pipeline provides unhindered access to international markets for the first time after years of disputes with the government in Baghdad over export revenue.

While Hayward said Genel is already sending about 50,000 barrels of oil a day on trucks to Turkey, where it receives higher prices than in the domestic market, the pipeline will have capacity of about 300,000 barrels a day.

Genel shares reversed earlier losses, to gain as much as 0.8 percent. The stock traded at 973 pence as of 9:53 a.m. in London. DNO International ASA, a Norwegian producer in the region, climbed as much as 1.3 percent to 16.18 kroner in Oslo.

The Kurdistan pipeline joins Iraq’s main export pipeline to Turkey after a Baghdad-controlled metering station, Hayward said. That will give the Kurds full control, bypassing the federal government.
Track Record

The pipeline will become operational by the end of the year, Ashti Hawrami, the KRG minister of natural resources, said on Oct. 3. The KRG signed a deal in April to sell oil and gas directly to Turkey. Turkey also set up a state oil company that has taken stakes in Kurdish oilfields, Hayward said.

“There are always risks, but you have to look at the track record of delivery,” Hayward said. “That gives me confidence that the agreement between Turkey and the Kurdistan region is being followed through.”

The KRG halted crude exports through the government-run link in December amid disputes with the Oil Ministry in Baghdad over revenue from crude sales and payments owed to companies such as DNO and Genel. Hawrami said that the region will export 1 million barrels a day by 2015 and 2 million barrels a day by 2019.

mistyhodag
25 Oct'13 - 12:27 - 322209 of 322243 2 0

Fang - not sure what you are suggesting. Of course they were 'pushed'. They weren't going to be re-elected. My comments are in response to posters suggesting that the supporters of the so called M&G4 are responsible, and that, more importantly, the removal of the two middle eastern representatives of a company who's activities are all in the middle east (to paraphrase a certain poster) is somehow a mistake.
My post attempts to differentiate the roles of 'directors' and any other class of servant to the company (if you see what I mean by the term, 'servant').
I only post because of the the misinformation I perceive, from certain posters.
If I may continue along that line, I am surprised at the vitriol towards Anastasia.
The undoubted problems are not, IMO, her fault. She is an intelligent woman who is doing her best. I do not know exactly where she sits in the organisation, but she seems to have a direct line to TK. That is the problem.
I would find it more sensible to have either the Finance Director, Company Secretary, or someone such as Tony Peart ( Legal and Commercial) with principal responsibility. That said, given the experiences to date, I would also expect much closer involvement/supervision of the company's PR and IR by external Advisors.

StockMarketWire.com
Genel Energy's production guidance range for the year is unchanged at 45,000-55,000 barrels of oil per day.

Net working interest production for the third quarter averaged caround 53,000 bopd - a 10% increase on last year.

Gross Taq Taq (Genel 44% working interest, joint operator) production for the third quarter averaged around 85,000 bopd. Trucked exports via Turkey averaged about 29,000 bopd in the period, with the balance being local sales and deliveries to the Bazian refinery.

Gross Tawke (Genel 25% working interest) production for the third quarter averaged around 61,000 bopd.

Chief executive Tony Hayward said: "Genel continues to make solid progress, with production and revenues growing in line with our prior guidance. We are encouraged by the positive outcome on the testing of the CS-11 well, and the Tawke-23 horizontal well delivered an outstanding result.

"Importantly, the KRI political landscape continues to evolve at pace - the KRI independent oil export pipeline is now complete and being commissioned, and we expect exports by pipeline in the first quarter of 2014. We completed our first domestic gas sales contract in the third quarter and anticipate the finalisation of the gas sales agreement between Turkey and the KRG in the first quarter of 2014. Our high impact African Drilling campaign is on track to commence around year-end with the Cap Juby well offshore Morocco."

http://mobile.businessweek.com/articles/2013-11-14/2014-outlook-kurdistans-oil-ambitions



Kurdistan, the self-governing region of northern Iraq, is poised to realize a gusher in revenue from its oil fields. Estimated reserves of about 45 billion barrels of crude have piqued the interest of several of the world’s largest oil companies. Although getting crude out of the country has until now been a challenge, the opening of a pipeline into Turkey at the start of 2014 will make it significantly easier to get the oil to markets. “We’re looking at multibillion barrels,” says Dougie Youngson, an analyst at VSA Capital in London. “The operators are sitting on huge resources that they want to start commercializing.”

Once it gets going, the pipeline, built and owned by the Kurdistan Regional Government, could result in exports of about 400,000 barrels of oil annually, according to the government. The output will jump to 1 million barrels a year by 2015, and 2 million barrels by 2019, says Ashti Hawrami, Kurdistan’s minister of natural resources. Such estimates have prompted ExxonMobil, Total, Chevron, and Gazprom to sign exploration agreements with the government. If it were a country, Kurdistan would rank 10th among the largest oil-holding sovereigns in the world. It produces about 200,000 barrels per day, with 50,000 of that exported to Turkey by truck. Southern Iraq’s oil fields pump out about 3 million barrels per day.

The substantial reserves will help meet increasing global demand at a time when three of the largest producers—Venezuela, Iran, and Saudi Arabia—are closed to many Western oil companies. “Iraq is the only country in the world where you can put a pipe in the ground and the oil starts flowing,” says Maria van der Hoeven, executive director of the International Energy Agency. “It’s the last easy oil.”

Kurdistan’s oil fields do have their political complications. Exxon and Total—both active in southern Iraq—face increased tensions with the central government in Baghdad given a long-standing dispute between Iraq and the Kurds over control of the northern oil fields and export revenue. In September, Hussain al-Shahristani, Iraq’s deputy prime minister for energy affairs, called Exxon’s intention to explore in the region a “serious error.”

But the upside of easy oil outweighs the risks of upsetting Baghdad, for large and smaller producers alike. “This is transformational for both Kurdistan and Genel,” says Tony Hayward, the former chief executive officer of BP who was appointed CEO of Genel in November 2011. The Turkish company is one of two foreign explorers, along with Norway’s DNO International, operating in Kurdistan and trucking out its exports. The pipeline, Hayward says, will give Kurdistan greater control over its exports and access to more markets. “For us,” he adds, “not only will we get higher realizations, we’ll get much greater volume

Bought this last week. This stock looks good on a 6 month view. Pipeline capacity due on stream shortly should transform b/d sold. Treble capacity possible and at less cost/b?!!!!!

http://www.garda-world.com/events/entry/kurdistan-iraq-oil-gas-conference

Sunday Times article 24.11.2013 Highlights why this should be a very successful share to hold over the next 12 months, with the prospect of a special dividend returning surplus cash to shareholders as well as the prospect of a much higher sp in the meantime.

Credit Suisse reiterates outperform on Genel Energy, target raised from 1296p to 1430p.

Genel Energy upgraded by Credit Suisse after 'irreversible progress' in Kurdistan

By Jamie Ashcroft December 04 2013, 11:05am

Credit Suisse reckons the semi-autonomous region has now made “irreversible progress” towards achieving large scale exports via TurkeyCredit Suisse reckons the semi-autonomous region has now made “irreversible progress” towards achieving large scale exports via Turkey

Genel Energy (LON:GENL) has been upgraded by City broker Credit Suisse which now believes the Iraqi Kurdistan oil play is lower risk.

Analyst Thomas Adolff reckons the semi-autonomous region has now made “irreversible progress” towards achieving large scale exports via Turkey, and as one of Kurdistan’s few producers Genel is set to benefit.

“Progress has been very impressive since 2011 and we treat recent events - the signing of the energy agreement with Turkey last week - as irreversible progress,” he said in a note.

“We believe Genel could be the bright-spot again in the UK E&P space in 2014.”

Credit Suisse today lifted its price target on Genel to £14.30 per share from £12.96 (current price: £10.61)

Looking ahead to what must now be achieved in the coming months, Adolff explains: “having finalised the energy agreements, the next step is to meet with the Government of Iraq (GOI) to reach a revenue-sharing agreement.

“Exports, however, can flow before and contractors amongst others will have the first call on revenue (ie, under this format, they should get paid as exports begin).

“The KRG, meanwhile, agreed not to draw on its share of revenue from these exports after contractor entitlements, tariffs and payments to the UN Compensation fund widely reported to be held in an escrow account in Turkey, under the control of the KRG, until it reaches an agreement with the GOI.

“As revenue is accumulated, there will be an incentive to reach an agreement.”

iii-cheers

From the following re Matt Badiali - Http://www.thedailycrux.com/Post/43849/must-see-a-sneak-peek-at-stansberry-associates-most-exclusive-event

As we discussed in the October 31 Digest, Matt recently returned from an exploratory trip to Iraq. He was looking at small-cap oil companies in the Kurdistan region. As we wrote...

Matt is bullish on [Kurdistan] because by the end of this year, a pipeline will be completed and operating that sends Iraqi Kurdistan oil to Turkey. It will transport 300,000 barrels a day. By 2014, Matt says this pipeline will deliver 1 million barrels of Kurdistan oil to Turkey... And by 2019, there will be a second pipeline – together, they'll transport 2 million barrels of oil daily.

To put those numbers in perspective, Oklahoma produces 300,000 barrels daily. By 2015, Kurdistan's oil exports will be equal to the oil production of Alaska, California, and Nevada combined. By 2019, its exports will be equal to 27% of U.S. daily production.

Kurdistan isn't a big place. It's just 74,000 square miles. It would be the 18th-largest state in the U.S., roughly the size of Washington or South Dakota.

But this region is still surprising everyone with its potential. The $25 billion oil producer Marathon Oil just announced a new discovery named Mirawa about 40 miles north of Erbil. The first well flowed 11,000 barrels of oil per day, 1,700 barrels of condensate per day, and 72 million cubic feet of natural gas.

It's a huge discovery.

In his presentation, Matt gave the names of five small-cap oil companies operating in Kurdistan. He thinks the oil majors, like ExxonMobil and Chevron, are about to go on a buying spree in Kurdistan... And he believes these small oil companies will likely be the targets

http://www.bloomberg.com/news/2013-12-03/iraq-controls-kurdish-oil-exports-under-new-accord-luaibi-says.html

------------------------------------------------------------------------------------ -------------------------------------------------------------------------------,



Turkish Energy and Natural Resources Minister Taner Yildiz has said that no matter what the Iraqi government decides on recently proposed mechanism, the oil deal with Iraq’s Kurdistan region will go on.
“If Iraqi accepts triple mechanism that we have founded, it can work. Of course it is a decision that our Iraqi brothers should decide on. If they do not accept, the process will go on,” Yildiz said at the Caspian Forum held in Istanbul on Thursday.
Turkey and Iraqi Kurdistan have recently agreed to get the consent of Central Iraqi Government in order to export oil from Kurdistan Regional Government, and start a strong collaborative project which would benefit all parties.
Yildiz earlier said that a working group was established with the Central Iraqi Government regarding the transfer of crude oil from Basra to Kirkuk-Yumurtalik, and the construction of a new pipeline.
"This working group will first work on a project regarding the unassembled pipeline of 400 km. Then they will perform a feasibility study, and keep contributing towards the completion of this project. Then we will join these pipelines together. I would like to emphasize that we support the Central Iraqi Government's project of taking the oil from southernIraq to world markets via northern Iraq," he had said.
Yildiz had said that the negotiations between Iraqi Central Government and Northern Iraq would soon begin, and they would be monitoring the situation closely, and make new evaluations accordingly

StockMarketWire.com
Investec has downgraded its recommendation on Kurdistan focused independent oil producer Genel Energy (LON:GENL) to "hold" from "buy" believing the stock's valuation has now reached an inflection point. The broker also said in its research note that it believes it is appropriate to apply a 10 - 15 per cent valuation discount to its Kurdistan asset base, given ongoing regional and political risks. Analysts have nudged up their price target to 1,140 pence per share (from 1,130 pence) after rolling forward their field models to 2014. Separately, Credit Suisse repeated its "outperform" recommendation (target price increased to 1,430 pence a share from 1,296 pence) in a note to investors, last week.

I was surprised to see Investec's new position on Genel. OK, there are political risks but as soon as Turkey gets used to receiving its oil down a pipeline, (with gas following on next year?), they are likely to be get very protective. It won't have escaped Iraq's notice the disparity in military capability between Turkey and Iraq which heavily favours Turkey if it comes to a punch-up. I reckon that Credit Suisse are more likely to be correct on this one, and then some, if the drilling next year proves successful.

Baghdad/ NINA/--A leading member for Kurdistan Alliance former MP, Abdul Bari Zebari said there are gripping prove the consent of the federal government on oil exports from Kurdistan region to Turkey.

The source said to NINA : "The export of oil from Kurdistan region to Turkey and European countries being conduct under the approval of three parties , the federal government, the provincial government and the Turkish government.

The Kurdish TV channel / Rudaw / in Erbil announced today that Kurdistan region began exporting oil to Trkiyah and attributed the information to an official Kurdish source./End

what is the trigger point that allows hayward and his buddies to get their snouts deep in the trough?

Strangely this was posted in May 2013, but he still seems to be there:
Director Declaration

In accordance with Listing Rule 9.6.14, Genel Energy plc announces that Tony Hayward, Chief Executive Officer of Genel Energy plc, has been appointed Interim Chairman of Glencore Xstrata plc with immediate effect with the intention that he will step down once a new chairman takes up the role.

I wonder if the sp will take a bit of a hit when this happens.

that's not the question
there's an sp trigger whereby if "that" price is held for 20 days out of 30 (or something) hayward and his buddies share £100m between themselves (and no one else)
it is almost inconceivable that this will not take place, and thus it equally follows that there will be a good time to short just before the payout - well that's my take on it

cynic sounds like shareholders being ripped off.

now why would you think that?
anyway, it was in ST Biz, but have binned that i think

Genel Energy plc issues a Trading and Operations Update in advance of the Company's 2013 full year results, which are scheduled for release on 6 March 2014. The information contained herein has not been audited and is subject to further review.

HIGHLIGHTS

· Kurdistan Region of Iraq ("KRI") independent pipeline infrastructure complete, exports expected to commence in the near future

- The KRI independent export pipeline infrastructure is mechanically complete.
- Commissioning of the system is ongoing and is expected to continue through the first quarter of 2014.
- The first KRI pipeline oil has arrived at Ceyhan in Turkey. The Kurdistan Regional Government ("KRG") has announced that first KRI export sales via the pipeline are expected to commence in the near future, and ramp up over the remainder of the year.

· Inter-governmental Gas Sales Agreement signed

- In November 2013, the Government of Turkey and the KRG signed a Gas Sales Agreement ("GSA") governing the export of natural gas from the KRI to Turkey.
- The GSA calls for an initial 4bcma of gas exports from 2017, rising to 10bcma by 2020 and the option of increasing to 20bcma thereafter.
- Genel anticipates that the Miran and Bina Bawi fields will deliver the gas supply to underpin the GSA, and as such it represents a significant milestone in the commercialisation of this major gas resource.

http://www.moneyam.com/action/news/showArticle?id=4739145

StockMarketWire.com

Liberum Capital has downgraded its recommendation on Genel Energy (LON:GENL) to "hold" from "buy" believing the shares are now fairly valued, given the backdrop of ongoing political risks, especially around Baghdad, Erbil and Ankara. Nevertheless, the broker believes there could be upside to around the £14 mark, if these issues were to be resolved. The market's valuation of Genel is close to our [unchanged] 1150p price target and we are lowering our recommendation to a (positive) HOLD, Liberum said in its research note to clients. We remain broadly positive on the shares; export issues are, for us, the only stumbling block. "If a solution to the issues is found, we believe Genel shares would trade at a premium to asset value, reflecting Genel's unrivalled position and its ability to find and develop resources in Kurdistan."

http://www.shafaaq.com/en/index.php?option=com_content&view=article&id=8990:plans-to-establish-a-second-oil-pipeline-from-kurdistan-to-turkey&catid=48:business&Itemid=73

KRG exercises back-in right to Miran PSC
Genel Energy plc ("Genel" or "the Company") announces that, on 23 February 2014, the Kurdistan Regional Government ("KRG") notified the Company of its intention, pursuant to the Miran Production Sharing Contract ("PSC"), to exercise its Option of Government Participation.

Accordingly, Genel's working and paying interests in the Miran PSC will fall from 100% to 75%, with the KRG's working and paying interests at 25%.

The Miran PSC covers 761km2 and contains the Miran gas, oil and condensate discovery, which has been independently assessed to contain gross mean contingent resources of 3.5 trillion cubic feet and 95 million barrels of oil and condensate.

On the back of the Turkey-KRG Gas Sales Agreement signed in November 2013, Genel is currently working with the KRG to put in place a Gas Sales Offtake Agreement for the Miran field by mid-year 2014. In parallel, the Company continues to screen a number of development concepts, incorporating both domestic and export supply options.

Cheers Harry,added to the header.

http://www.basnews.com/en/News/Details/Turkish-Energy-Minister--Kurdistan-is-our-only-solution-to-tackling-gas-prices/13637

Genel Energy plc, the London listed exploration and production company and largest independent oil producer in the Kurdistan Region of Iraq, announces its preliminary audited results for the year ended 31 December 2013

Highlights
§ KRI export pipeline infrastructure complete and in the commissioning phase. Volumes of KRI oil in storage at Ceyhan continue to grow
§ Turkey-KRG Gas Sales Agreement a significant milestone in the commercialisation of Miran and Bina Bawi gas fields
§ 100% success rate on KRI exploration - Chia Surkh, Ber Bahr and Tawke Deep discoveries
§ Successful appraisal drilling at Bina Bawi increased mean contingent resources by 70%
§ Proven and probable reserves (2P) increased to 453 mmboe (2012: 445 mmboe), representing a reserve replacement ratio of 147%
§ Total working interest reserves and unrisked resources increased to 5.9 bnboe (2012: 5.4 bnboe)

Exploration update
§ JM-1 well on the Cap Juby prospect offshore Morocco confirms the presence of oil in the Upper Jurassic, as originally tested by the 1968 MO-2 well, some 2km from the JM-1 location. The well continues to drill ahead to the primary Middle Jurassic target
§ Taq Taq Deep well drilled to 4,600 metres, with around 300 metres of gas and condensate shows recorded in the Jurassic

Outlook
§ 2014 production guidance maintained: average net working interest production expected to be 60-70,000 boepd, significant growth of 50% at the midpoint of the range
§ Upgrades at both Taq Taq and Tawke on track to deliver processing capacity of 200,000 bopd by the end of 2014
§ Fully funded drilling campaign ongoing, with five high-impact wells in 2014 targeting 1.2 bnboe gross unrisked prospective resource
§ Significant value creation opportunity through domestic sales, early domestic gas monetisation with first production at Dohuk in late Q1 2014
§ Gas Sales Offtake Agreements with KRG for Miran and Bina Bawi expected to be signed in the second half of 2014

http://www.moneyam.com/action/news/showArticle?id=4767810

StockMarketWire.com
Genel Energy has noted the start of production from the Tawke field in the Kurdistan region of Iraq and the abandonment of a well offshore Morocco.

Genel - which has a 25% working interest in the field said the operator DNO International had issued a release that it has initiated production from two newly completed horizontal wells in the Tawke field in the Kurdistan region of Iraq at a combined rate of 37,000 barrels per day. The release said: "In one of the new wells, Tawke-21, eight productive fracture corridors penetrated by a 980-meter horizontal section in the main Cretaceous reservoir interval flowed an average rate of 9,700 barrels per day each. In the other well, Tawke-22, located six kilometers away, seven productive fracture corridors penetrated by an 800-meter horizontal section flowed an average rate of 8,800 barrels per day each. Both wells are subject to wellbore and surface facilities limitations. "Two previous Tawke horizontal wells came on production in the second half of last year, two wells are currently drilling and three more are scheduled which, together with Tawke-21 and Tawke-22, will bring the total number of horizontal wells in the field to nine by year-end."

Genel also noted that Cairn Energy has plugged and abandoned the JM-1 well offshore Morocco. Genel has 37.5% working interest.

Acquisition of interests in offshore Angola pre-salt exploration licences

Genel Energy plc is pleased to announce that, together with White Rose Energy Ventures, it has agreed to acquire 15% working interests in Blocks 38 and 39 offshore Angola.

Blocks 38 and 39 are situated in the Kwanza Basin and cover an area of c.14,000km2 in water depths of 1,500-2,500m.

The transactions provide Genel with a position in exploration licences that hold multi-billion barrel prospectivity and represent a relatively low risk, high impact near-term exploration opportunity. The play has already been de-risked by exploration drilling in Angola and in the directly analogous Santos and Campos Basins offshore Brazil. A working hydrocarbon system has already been established in the Kwanza Basin through the Cameia, Lontra, Mavinga, Bicuar, Orca, and Azul discoveries, which are located on licences directly adjacent to Blocks 38 and 39.

The Stena Carron drillship has been contracted for a drilling programme which is expected to commence in Q2 2014. The first well of this programme, on Block 39, is expected to target the very material Dilolo prospect. The first well on Block 38 is scheduled to follow the Block 39 well.

The interests will be acquired through two separate transactions. In each transaction, a 15% working interest will be acquired by a 50/50 Genel/WREV joint venture company.

In Block 38, the 15% working interest will be acquired from China Sonangol for an upfront payment of US$59m (US$30m net to Genel), representing a pro rata share of past costs.

In Block 39, the 15% working interest will be acquired from the operator, Statoil Angola Block 39 AS (a wholly-owned subsidiary of Statoil), for a consideration comprising a pro rata share of past costs and a partial carry of Statoil's share of the first exploration well, for a total consideration value of US$222m (US$111m net to Genel). All consideration will be paid by carrying Statoil's share of expenses on the block, with the carry on the first exploration well capped at US$123m (US$61m net to Genel) and the remaining US$99m carry (US$50m net to Genel) paid in the event that Genel/WREV elects to participate in additional activity on the Block.

Genel intends to fund its share of the acquisition consideration and drilling cost through existing cash balances. Completion of the acquisition is subject to both Angolan government and Block partner approvals.

Macquarie note today:
"The Kurdish pipeline is complete and binding agreements have been signed with Turkey. Everything is in place for the KRG to ramp up its exports and start on its pathm to over one million bopd of crude production. One thing is standing in the way:Baghdad. Tensions are running high; however, the upcoming Iraqi elections could pave the way toward opening the flood gates that will let Kurdish oil into international markets.
Kurdistan has fair fiscal terms, proving infrastructure and ~45 billion boe of recoverable resource, putting it on a world class scale. Companies that have chosen the right assets are poised to reap the rewards. We have analysed each asset using a proprietary ranking method and rate all of Genel’s assets, as well as Oryx’s Hawler block, as excellent. Following closely behind are Afren’s Ain Sifni and Barda Rash licences.
We believe Genel Energy (GENL-LSE), Afren (AFR-LSE) and Oryx Petroleum (OXC-TSX) all stand in a good stead; however, we particularly favour Genel’s exposure. The company has greater than 1 billion boe of contingent resource, two of the largest producing assets in the region (Taq Taq and Tawke), and in H2/14, a Gas Sales Offtake Agreement to supply the hungry Turkish market from its gas fields, Miran and Bina Bawi. We initiate coverage of Genel with an Outperform rating and a target price of 1,450p."

Genel Energy plc ("Genel" or "the Company") issues the following Interim Management Statement for the period from 1 January 2014 to today. This statement is issued ahead of Genel Energy's Annual General Meeting, which is being held at 11.00am today at the Sofitel St James, 6 Waterloo Place, London, SW1Y 4AN.

PRODUCTION AND REVENUE
· 2014 production and revenue guidance unchanged at 60,000-70,000 boepd and revenue of $500-600 million

· Net working interest production for the first quarter averaged 50,000 bopd, an increase of 35% on Q1 2013

o Taq Taq and Tawke averaged 81,000 bopd and 57,000 bopd respectively

· Domestic sales realisations were $69/bbl for Taq Taq and $58/bbl for Tawke

· Production and revenues expected to increase over the course of 2014 as the Kurdistan Region of Iraq ("KRI") oil pipeline system comes into operation

INFRASTRUCTURE
· The KRI pipeline commissioning process is substantially complete after compression was installed at the Khurmala Dome. Works to replace a short section of the 40 inch Iraq-Turkey pipeline in Turkey and install extra compression at Fishkabur are expected to be completed in H2 2014.

DEVELOPMENT AND APPRAISAL
· At the Taq Taq field, the construction of the second central processing facility is progressing and is on track for completion around year end. The drilling of the first deviated and horizontal wells on the field will follow completion of the Taq Taq Deep exploration well.

· During the quarter, two additional horizontal development wells were completed at the Tawke field and brought onstream at a combined rate of 37,000 bopd. The operator, DNO International, has outlined plans to increase field processing capacity from 100,000 bopd to 200,000 bopd by the end of 2014 through the installation of early production facilities.

· First gas production from the Summail field development is expected shortly.

EXPLORATION
· In April, the company announced that, together with White Rose Energy Ventures, it had agreed to acquire 15% working interests in Block 38 and 39 offshore Angola. The transactions provide Genel with a position in exploration licences that hold multi-billion barrel prospectivity and represent an attractive high-impact near-term exploration opportunity. The Stena Carron drillship has been contracted for a drilling programme, which is expected to commence in mid-2014. The first well of this programme, on Block 39, is expected to target the very material Dilolo prospect.

· Drilling operations on the Taq Taq Deep exploration well were completed in March 2014 at a depth of 4,600m after the well had intersected gas bearing upper Triassic reservoirs. A testing programme on Jurassic and Triassic reservoirs is now in progress.

· The Cap Juby well offshore Morocco confirmed the presence of heavy oil over a gross interval of 110 metres in an Upper Jurassic carbonate reservoir. Work is ongoing to evaluate the extent of moveable hydrocarbons and how any further assessment should be conducted.

· The exploration well on the Hagar Qim prospect on the Area 4 licence offshore Malta is scheduled to spud in May.

FINANCE
· 2014 capital expenditure guidance remains at $550-600 million as the capital programme has been optimised to accommodate the Angola drilling activity.

· Cash balances at 31 March 2014 stood at c.$600 million.

Genel Energy's 2014 Half Year Results will be announced on 5 August 2014.

Director Declaration

Genel Energy plc notes that Glencore Xstrata plc has announced the permanent appointment of Tony Hayward as its Non-Executive Chairman with immediate effect.

surprised none of you guys picked up on the good snippet in yesterday's ST .... hence this morning's little flurry

Comment from Oriel today:
"At the current price, we see little implied risk of accident, disappointment, failure or miscalculation in regard to the business of producing and selling oil in Kurdistan. As such, we do not think the ‘political de-risking’ buy case for Genel is compelling. Given this view, we think only a speedy maturation of the gas development portfolio, coupled with exploration success in Angola or Morocco, can support the current share price. Our negative stance on these key assets leads us to a REDUCE recommendation.
Important, low return gas projects are at risk. Using Genel’s own cost assumptions, we do not think Miran and Bina Bawi represent attractive uses of capital at likely gas prices. The two fields are strategically important to Kurdistan’s relationship with Turkey and this fact may lead to an accord between the Kurdistan Regional Government (KRG) and its contractors. However, Genel needs to farm out at Miran and we think any delay in reaching the advertised field development milestones will be taken negatively as the year progresses.
Exploration hopper, filled at great expense, could be empty by year end.
Genel’s decision to shorten a two-year contract for its deepwater drilling rig suggests a lack of good prospects in its Africa exploration portfolio, in our view. Although we are encouraged at the show of capital discipline, there is now little visibility on Africa exploration in 2015. We carry a risked value of 100p/sh for this year’s remaining five exploration wells, noting that four of these are to be drilled at sole risk or with Genel providing a significant carry, at a net cost of US$300-350m (65-75p/sh).
Violence in Iraq may preclude Genel’s near term acquisition. One compelling reason to hold Genel is the potential for a corporate takeover at a higher price level. The strategic significance of Tawke and Taq Taq make them appealing to an acquirer, especially should the KRG move further towards autonomy and/or independence in the months ahead. However, given recent violence, political disquiet and Genel’s c.US$4bn EV, we think an outright sale is unlikely for some time."

Trading and Operations Update
Genel Energy plc ("Genel" or the "Company") issues a Trading and Operations Update in advance of the Company's half-year 2014 results, which are scheduled for release on 5 August 2014. The information contained herein has not been audited and may be subject to further review.

PRODUCTION AND REVENUES UPDATE
· Gross production from Taq Taq averaged 92,000 bopd in H1 2014 and 113,000 bopd in June.
· Gross production from Tawke averaged 84,000 bopd in H1 2014 and 116,000 bopd in June.
· Genel net working interest production averaged 63,000 boepd in H1 2014, an increase of 50% on H1 2013.
· Genel net working interest production averaged 84,000 boepd in June 2014 on the back of exports via the KRI-Turkey pipeline, trucked exports via Turkey, strong domestic demand and the ramp up of deliveries from the Summail gas field into the Dohuk power station.
· The Company's 2014 production guidance is maintained at 60-70,000 boepd.
· The Company's 2014 revenue guidance is maintained at $500-600 million.

http://www.moneyam.com/action/news/showArticle?id=4842186

Unaudited results for the six months to 30 June 2014
Genel Energy plc ("Genel" or the "Company"), the London listed exploration and production company and largest independent oil producer in the Kurdistan Region of Iraq, announces its unaudited half year results to 30 June 2014

Highlights
§ Genel's operations in the Kurdistan Region of Iraq (KRI) remain safe and secure
§ Significant volume growth in H1 2014, average net working interest production of 63,000 boepd represents c.50% uplift on H1 2013
§ Progress towards sustainable KRI pipeline exports - first cargo lifted from Ceyhan in May and proceeds from first sale received in a Turkish bank account controlled by the Kurdistan Regional Government (KRG)
§ First gas from Summail development delivered to Dohuk Power Station in May
§ H1 2014 revenues of $192 million, up 20% on H1 2013, excludes $40 million of export revenue owed but not recognised
§ H1 2014 EBITDAX of $138 million, up 6% on H1 2013 principally as a result of higher revenue
§ Cash balances at end H1 2014 of $974 million following high-yield bond issue; net cash of $483 million at period end

Exploration update
§ Material Dilolo prospect offshore Angola spudded in June, drilling operations scheduled to take up to 5 months to complete
§ Nour prospect on Sidi Moussa licence offshore Morocco spudded in late July and is expected to take two to three months to complete

Outlook
§ 2014 production (60-70,000 boepd), revenue ($500-600 million) and capex guidance ($550-600 million) unchanged
§ Good progress negotiating a gas sales offtake agreement (GSOA) for Miran and Bina Bawi; expected to conclude by year-end 2014.

Commenting today Tony Hayward, chief executive, said:
"Operational momentum in the KRI is increasing, with the opening of the KRI-Turkey pipeline resulting in a significant rise in our production. Whilst we continue to monitor the situation closely, our operations in Kurdistan have been unaffected by events elsewhere in Iraq. The KRG has successfully sold oil exported through Ceyhan at international prices, and we expect our production to increase further in the second half of the year as sales become regular and payments predictable.

The signing of the gas sales offtake agreement for Miran and Bina Bawi will be transformational for our gas business, and will provide a clear path to monetisation of this world-class resource. With the GSOA expected to be signed before the end of the year, and drilling underway on high-impact prospects offshore Angola and Morocco, the Company is set to make material progress in the second half of 2014."

Update regarding Kurdistan Region of Iraq
"Following recent events in the vicinity of the Kurdistan Region of Iraq ('KRI'), Genel Energy plc can confirm that the Taq Taq and Tawke fields remain safe and secure. Operations there are unaffected, with combined gross production from both fields averaging c.230,000 bopd this week.

We remain confident in the Kurdistan Regional Government's ability to maintain the territorial integrity of both the KRI and oil infrastructure.

In line with moves by other operators, we are taking the prudent and precautionary step of withdrawing non-essential personnel from our non-producing assets in the region."

Getting hammered today.

Chart support at 720p?

Return to normal staffing levels in Kurdistan Region of Iraq
Genel Energy announces that, following a significant improvement in the security situation in the border region of the Kurdistan Region of Iraq ('KRI'), the Company has begun the process of returning staffing levels to normal. This follows the temporary and precautionary step of withdrawing non-essential personnel from non-producing assets.

Genel's primary consideration is the safety and wellbeing of our employees. The decision to resume full operations has been made following a close monitoring of the situation, and in consultation with the Kurdistan Regional Government, Foreign and Commonwealth Office of the British Government, and other well-placed authorities.

Genel's operations in the KRI remain safe and secure. Production at Taq Taq and Tawke has been entirely unaffected, and has risen to record levels. Since the start of September combined production from Taq Taq and Tawke has averaged c.234,000 bopd, with piped exports from both fields totalling an average of c.182,000 bopd, boosted by the recent upgrade work on the KRI-Turkey pipeline.

StockMarketWire.com
Genel Energy had noted today's announcements by its partners San Leon Energy and Serica Energy regarding the Sidi Moussa-1 well offshore Morocco, operated by Genel with a 60% working interest.

Genel confirms the information contained in the operational updates issued by its partners.

Genel says it is premature at this stage of operations and ahead of the forthcoming testing of the well to make any definitive technical interpretation.

Genel shall update the market on completion of operations.

Due to report on thursday.

http://www.scoop.it/t/aim-market-gossip



Analysts also expect Genel to unveil a landmark gas supply contract with Turkey. The explorer found a huge gas field it named Miran, but investors are reluctant to assign it a value because it was unclear how, or whether, it woud be developed. The expected deal could value Miran at as much as $2bn ( £1.3bn). Genel’s market value is £2bn.

Genel and Gulf Keystone declined to comment.

853.00
+99.00 (+13.13%)
live: 8:17AM GMT
Buy Volume 234,014 Trade Low 796.40
Sell Volume 141,879 Trade High 858.00
? Volume 4,016 VWAP 818.72
Total Volume 379,909 Prev da

http://www.cityam.com/1415594556/genel-poised-reveal-lucrative-turkey-gas-deal

Trading update and capital markets day preview
Genel Energy plc ("Genel" or "the Company") issues the following trading update and preview ahead of a capital markets day presentation for analysts and investors in London commencing at 14:00 GMT. The presentation materials will be published at 12:00 GMT on www.genelenergy.com with the event broadcast live on the website, and available for download shortly afterwards.

HIGHLIGHTS
· Genel and the Ministry of Natural Resources ("MNR") of the Kurdistan Regional Government ("KRG") have signed an agreement governing the development of the Miran and Bina Bawi gas fields, materially de-risking the gas business and unlocking significant value
· A total of c.23 million barrels of KRI pipeline crude have been exported from Ceyhan in 30 liftings, with a three month track record of predictable sales seeing 24 of these tankers sold and five en route to customers
· The KRG has given a firm commitment to paying contractors in full, with an initial payment to be made in November 2014 and further payments to follow on a regular basis. A normalised payment mechanism is expected in Q1 2015 as increasing pipeline exports deliver budget equilibrium for the KRG
· 2014 production and revenue guidance is unchanged at 60,000-70,000 boepd and revenue of $500-600 million
· 2015 production guidance is set at 90,000-100,000 boepd and revenue guidance at $500-600 million, based on a Brent price of $80/bbl
· Genel's operations in the Kurdistan Region of Iraq ("KRI") remain safe and secure.

http://www.moneyam.com/action/news/showArticle?id=4922489

Agreement with MNR for development of Miran and Bina Bawi

Agreement reached for acquisition of Bina Bawi stake from OMV

Genel Energy plc ("Genel" or "the Company") is pleased to announce that it has reached an agreement with the Ministry of Natural Resources ("MNR") of the Kurdistan Regional Government ("KRG") for the development of the Miran and Bina Bawi gas fields.

In addition, Genel has agreed key terms with OMV to acquire its 36% operated stake in the Bina Bawi gas field. The total consideration will be $150 million in cash. An initial payment of $20 million will be paid on completion of the deal, with the remaining $130 million paid in two instalments after first gas. This is subject to finalisation of documentation and OMV's corporate approvals.

The agreement with the MNR for the development of Miran and Bina Bawi states that:

· The Miran and Bina Bawi fields are to be combined under one Production Sharing Contract ("PSC"). This is expected to be approved by year-end 2014. Following approval, Genel will become the sole contractor and have a 100% equity interest in both fields
· The responsibilities of Genel will be drilling of the gas wells and installation of flowlines and first stage condensate separation at Miran and Bina Bawi. The Company will also be responsible for the development of the oil resources at Miran and Bina Bawi
· The KRG will assume responsibility for the gas treatment facilities and gas offtake arrangements from the fields
· The tender process for the gas treatment plant will commence in the first half of 2015 and first gas production for export will commence in H1 2018. The KRG also has an option to request gas for domestic consumption commencing in 2016
· Genel's entitlement will be 100% of oil revenues until all licence back costs are fully recovered. The Company's share of oil revenues will then revert to 50%. First oil production is expected in 2016
· Genel will also receive 100% of the revenues for condensate extracted at first stage separation and a fee of $0.78 per thousand cubic feet for the raw gas delivered into the gas treatment facilities

The Company expects that a final investment decision for the development of the fields will be made in H1 2015.

http://www.moneyam.com/action/news/showArticle?id=4922484

Kurdistan region, Baghdad reach deal on oil exports and payments

By Michael Georgy and Isabel Coles

BAGHDAD/ARBIL Thu Nov 13, 2014 2:53pm EST


Kurdistan regional government confirms deal with Baghdad over oil exports

(Reuters) - The government of Iraq and the semi-autonomous region of Kurdistan have reached a deal to ease tensions over Kurdish oil exports and civil service payments from Baghdad, Iraq's finance minister told Reuters on Thursday.

Hoshiyar Zebari said the central government had agreed for the time being to resume payments from the federal budget for Kurdish civil servants' salaries.

Zebari, who is a Kurd, described the step as a "major breakthrough" that would reduce friction between the KRG and Baghdad. He said the payments would cover October and then November.

The deal was reached after talks between Iraqi Oil Minister Adel Abdel Mehdi and Kurdish Prime Minister Nechirvan Barzani in the Kurdistan region on Thursday.

Baghdad stopped paying for KRG civil servant salaries in protest against the Kurds' exporting oil to Turkey independently.

Under the agreement, Iraqi Kurdistan will give 150,000 barrels per day of oil exports - equal to around half its overall shipments - to the federal budget.

In Arbil, the Kurdistan Regional Government (KRG) confirmed the agreement.

"What they have agreed is that Baghdad will release some funds - $500 million - and the KRG will give 150,000 barrels per day of oil to Baghdad," KRG spokesman Safeen Dizayee told Reuters.

EXPORTS STILL UNDER CONTROL OF KURDS

He said a KRG delegation headed by the prime minister would travel to Baghdad soon to hammer out a more comprehensive deal and the regional government would not hand over control of exports to Baghdad.

A similar agreement was proposed in April but never advanced to a deal.

In July, then Iraqi foreign minister Zebari said the Kurdish political bloc withdrew from the national government in protest against Prime Minister Nuri al-Maliki's accusation that Kurds were harbouring Islamist insurgents in their capital.

The Kurds later rejoined the administration. But tensions persisted.

Maliki, one of the most divisive figures to emerge from the U.S. occupation of Iraq, was later replaced by Haider al-Abadi.

He is seen as a moderate Shi'ite capable of cooperating with Sunni Muslims, Kurds and other sects.

Iraqi leaders are under pressure to bury differences in order to counter Islamic State militants who have seized chunks of the country in the north and west.

There are about 5 million Kurds in majority Arab Iraq, which has a population of more than 30 million. Most live in the north, where they run their own affairs, but remain reliant on Baghdad for a share of the national budget.

(Writing by Michael Georgy; Editing by Keiron Henderson)

Consolidation will cut the number of oil producers in Kurdistan by three-quarters within five years, Genel Energy Plc (GENL) Chief Executive Officer Tony Hayward said.

“It’s likely that we’ll end up with, perhaps, five or six of the largest companies operating with Genel, Exxon, Chevron ending up as major operators,” Hayward said in a Nov. 21 interview during the Atlantic Council conference in Istanbul. “It’s what happens in most hydrocarbon provinces.”

ExxonMobil Corp. (XOM), Chevron Corp. (CVX) and DNO ASA (DNO) of Norway are among more than two dozen international oil companies holding 35 licenses in the Kurdish Regional Government area. They export about 350,000 barrels a day of crude, pumping it through a Turkish pipeline to the Mediterranean.

Genel has spent more than $1 billion since 2012 on acquisitions in Kurdish-controlled northern Iraq, giving the London-based company joint ventures in seven of the region’s oil and gas fields. This month it agreed to pay $150 million for OMV AG’s 36 percent stake in Bina Bawi, making it the sole owner of the gas field.

“Having made four or five investments in the region, we are continuously looking for opportunities,” said Hayward.

Genel expects approval by the end of this year of an agreement signed with KRG last week to develop the Miran and Bina Bawi gas fields, which will start sending Turkey 4 billion cubic meters of gas a year from 2018. That export volume could more than double by 2020 and increase fivefold to 20 billion cubic meters by 2025, Hayward said.

Gas Reserves

Officials in Turkey said the country plans to build a pipeline to import the fuel.

Development starts next year at Miran, which has gas reserves of 4 trillion cubic feet, and Bina Bawi, with double that volume, according to Hayward. Genel will sell unprocessed gas from the two fields to KRG at a price of 78 U.S. cents per million British thermal units after investing in drilling wells and flow lines, he said.

“We will earn our return through the condensate we’ll strip from the gas and the oil associated with the gas field and KRG will get this gas at a very cheap price,” Hayward said. The KRG will build a gas-processing plant in which Turkish builders and lenders will participate, he said.

Genel, which doesn’t need partners for the gas fields, would need to spend about $1 billion over three years to develop them, Hayward said. KRG’s processing plant would cost as much as $6 billion, potentially with about half coming from Turkish bank loans and the remainder as equity from Turkish contractors, he said.

Lowest Cost

KRG will sell the gas to Turkey at $7 per million Btu, according to a 2013 agreement between the regional government and Turkey, he said. The wholesale market price for gas-fired power plants in Turkey is $10 to $11 per million Btu, Hayward said. Turkey imports almost all of its gas needs, with Russia supplying 60 percent.

“This is one of the lowest cost prices in the world today actually and right on the Turkish doorstep, only 100 kilometers away,” Hayward said. “Kurdish gas has certainly the potential to match Russian gas for Turkish market.”

Turkey plans to build a pipeline extension to the Iraqi border to import gas from Kurdistan, two Turkish officials with knowledge of the matter said last week. It would carry as much as 20 billion cubic meters of gas a year, one of them said.

StockMarketWire.com
Genel Energy has announced that the Taq Taq field partners have received an initial gross payment of $30m from the Kurdistan Regional Government for oil exported through the Kurdistan Region of Iraq (KRI)-Turkey pipeline.

The Tawke field partners will also receive a $30 million gross payment. Genel's net share of these payments is $24 million.

Genel believes that this is an important first step towards the normalisation of payments for oil exported through the pipeline. Payments are expected to become more regular and predictable once the KRG reaches budget equilibrium in early 2015.

Oil exports by pipeline from the KRI continue to grow and recently exceeded 350,000 barrels of oil per day.

From the Times.


The Kurds and Baghdad have finally ended their bitter feud over how to share Iraq’s oil revenues, sending shares in London-listed Kurdish oil explorers soaring.
After more than five years of squabbling, the two sides have struck an agreement guaranteeing that oil producers in the Kurdish semi-autonomous region of Iraq will be paid in full.
Shares in Genel Energy, the explorer set up by Tony Hayward, the former chief executive of BP, rose by nearly 10 per cent, and Gulf Keystone’s stock closed up by 15 per cent.
Hoshiyar Zebari, the finance minister of Iraq, described the deal as a “win-win” for Baghdad and the Kurdish Regional Government.
Baghdad has agreed to allow the Kurds to export 300,000 barrels a day from Kirkuk, the northern city, and another 250,000 barrels a day from the northern Kurdish region through Turkey. In return, the Kurds will receive a 17 per cent share of Iraq’s national budget every month.

Bloomberg

Kurdistan Ripe for Consolidation as Oil Plunges, Genel Says
By Firat Kayakiran
December 17, 2014 12:04 PM EST

1

Genel Energy Plc (GENL), the company headed by former BP Plc Chief Executive Officer Tony Hayward, sees acquisition opportunities in Iraqi Kurdistan as oil prices plunge and the region resolves differences with Baghdad.

“We expect to see a lot of consolidation both in Kurdistan and globally,” Genel President Mehmet Sepil said in London today. “Most of the big companies were created through mergers at the time of political or economic crisis.”

Genel has spent about $1.4 billion on acquisitions and plans to continue to grow, Sepil said. While crude futures have slumped about 44 percent this year to trade below $55 in New York, the London-based explorer produces oil at a cost of $5 a barrel, Sepil said. “Even if the price falls to $20 a barrel, we are making a lot of profit.”

An agreement between the Kurdistan Regional Government and Baghdad over oil exports will create a wave of consolidation both in the semi-autonomous region and the country as a whole, Sepil said. Disagreement between the two authorities had slowed investment by forcing international companies to choose between them, he said.

Genel shares jumped 6.3 percent to 662.5 pence, valuing the company at 1.84 billion pounds ($2.88 billion) at the close in London.

Agreement Reached
The KRG is set to produce 1 million barrels of oil a day by the end of 2015, it said on Nov. 7. It plans to export 500,000 barrels a day via neighboring Turkey by the end of March. The region had been exporting oil in defiance of Baghdad until they reached an agreement last month on sharing revenue, paving the way for a broader agreement on the future of the region.

ExxonMobil Corp. and Chevron Corp. are among more than two dozen international oil companies with a combined 35 licenses in the area. The companies export about 400,000 barrels a day of crude, pumping most of it through a Turkish pipeline to the Mediterranean.

Kurdistan has become a key contributor to the Iraqi economy, Sepil said. The Kurds are protecting the oil fields from Islamic militants and provide stability and steady production, he said.

Kurdish forces helped to repel Islamic State militants who threatened the region’s energy boom by taking a vast swathe of northern Iraq and Syria this year.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net Alex Devine, Dylan Griffiths

From lse

Mulder 699 posts

Genel IR call

I spoke with Genel Investor Relations earlier. (Much better than Anastasia!) They say all the oil companies are in the same boat. A further payment is imminent to all from the KRG but they would not tell me when. They also reassured me the earlier payment was definitely not a one off and that these would become regular in 'the foreseeable future'. Advised us all to be patient!

Sun 11 Jan 2015

NewsNewspaperAppJob

Where's the money?

GENEL ENERGY

By Nassir Shirkhani London

09 January 2015 00:00 GMT

Where is the money? This is the mantra of leading operators in Iraqi Kurdistan as they freeze expansion plans until the Kurdistan Regional Government (KRG) Oil Ministry pays them for the crude they produce in the autonomous region.

The pioneers that put Iraqi Kurdistan on the global energy map argue it is high time they reap the rewards of investing in a region once shunned by major companies for being a risky destination.

Norway’s DNO, Anglo-Turkish oil company Genel Energy and UK-listed Gulf Keystone Petroleum, which account for the bulk of Kurdish oil production, are under intense pressure from shareholders to rein in expansion plans until the KRG begins a regular payment schedule to help them recover costs after years of hectic spending.



New agreement Executives of the three companies urged KRG’s Oil Minister Ashti Hawrami during a CWC conference in London in December to turn a new page in the region’s relationship with the companies now that the KRG is receiving funds from the Iraqi central government under a new revenue sharing agreement.

The companies’ push for money intensified following the landmark agreement in early December that commits the central government to resuming payments of federal funds to the Kurds in return for oil exports through the region.

The deal followed the formation of the new Iraqi government, led by Haider al-Abadi, in the wake of humiliating defeats by the Iraqi army at the hands of self-proclaimed Islamic State militants.

The KRG has since played a key role in pushing back the jihadists, and relations between Erbil and Baghdad improved significantly.

DNO executive chairman Bijan Mossavar-Rahmani and his peers see light at the end of the tunnel after a tumultuous decade of operations in the KRG. “I expect we are seeing the dust start to settle and the smell of victory is in the air,” he says.

However, he cautions that the victory will sound hollow unless the companies see a steady revenue stream after years of patchy payments for their work in Iraqi Kurdistan.

“We have indicated that we will do more with more. More regular and transparent payments for past, present and future production. More clarity about how Kurdistan’s oil is commercialised,” Mossavar-Rahmani told the London conference.

“Until such normalisation takes hold the true oil and gas potential of Kurdistan will not be fully unlocked.”

Genel president Mehmet Sepil sounded optimistic about a lasting agreement between Baghdad and the KRG on ending their long-standing oil dispute, making it possible for the Kurdish government to pay companies.

“Starting from next month, I think Ashti is going to regularise all the payments,” Sepil says. Genel and its partner Sinopec, meanwhile, are putting on hold expansion plans for their flagship Taq Taq field, which is currently producing close to 140,000 barrels per day.

Output is to peak at 150,000 bpd by February.

“Then we will see whether we want to increase. We are a publicly-listed company and don’t want to commit more than we see today, but there is a good chance we will be producing over 150,000,’’ Sepil says.

Genel says the pause will allow the Taq Taq partners to carry out a reservoir study after water encroachment at the field.

Genel said earlier this year it was planning to increase production at Taq Taq to 200,000 bpd by 2015.

DNO, meanwhile, is preparing to take a breather on expansion at its operated Tawke block, which is capable of producing 200,000 bpd — making it the largest producing field in Kurdistan.



Standing back Tawke is now producing 100,000 bpd, but output will double to 200,000 bpd by February once a lager 24-inch pipeline connecting the field to the Turkish border has been completed.

“We are going to catch our breath. We have quadrupled capacity in two years and deserve to stand back and pause to see how the wells are performing, how the field is performing and understand how the commercialisation works,” says Mossavar-­Rahmani.

“To continue to grow deliverability when commercialisation is unclear does not make sense. We will pause in 2015 and then, in consultation with our partner Genel and the Kurdistan government, we will make a decision as to whether additional investments are warranted or not.

“We have been promised regularity of payments and we will base our own planning around that,’’ he adds, referring to KRG Oil Ministry plans to start paying companies on a regular basis.

DNO has a 55% in Tawke, while Genel is on 25% with the KRG holding the remaining 20%.

Elsewhere in Iraqi Kurdistan, Gulf Keystone is on track to double production from its Shaikan field to 40,000 bpd in January.

Any further expansion of Shaikan is on hold, pending regular payments.

Gulf Keystone is therefore bound to miss its longer-term production goal of 100,000 bpd by the end of 2015.

The KRG paid a total of $75 million to DNO, the Taq Taq partners and Gulf Keystone in December after receiving $500 million in federal funds.

The KRG has just received a further similar amount from the central government, with the companies expecting another share of the cake.

The three pioneers and partners are expected to produce a total of just under 400,000 bpd from their Kurdish fields by February.

Additionally, the local Kar group is producing about 100,000 bpd from the Khurmala dome, thus soon giving the KRG a combined production of 500,000 bpd.

Hawrami has set himself a production goal of 1 million bpd in 2016 from KRG territories, but that target looks increasingly distant amid payment problems, the faltering oil market and security issues.

Pact binds country’s wounds: Page 26

Desktop version Contact App© Upstream 2014

StockMarketWire.com
Goldman Sachs has upgraded its recommendation on Kirdistan focused independent oil producer Genel (LON:GENL) to 'buy' from 'neutral', stating that it believes the stock offers an attractive risk / reward opportunity on a strategic asset base.

The broker added: "If regular and sustainable oil export payments can be achieved, this would not only de-risk visibility on company cash flows, but also remove a key hurdle for future accretive asset disposals, which we see as the longer term driver for Genel's valuation."

Nevertheless, analysts have cut their target price to 850 pence per share from 1,280 pence.

Separately, Deutsche Bank repeated its 'buy' call but lowered its target to 800 pence from 1,000 pence, which it said was after stress-testing balance sheets in the sector down to $50

StockMarketWire.com
Genel Energy lowered revenues guidance for this year and expects revenue for 2014 to be towards the lower end of the $500m-600m guidance range, in line with consensus.

In 2014, crude oil realisations averaged $73 per barrel, an 11% increase on 2013. Pipeline export realisations from Taq Taq and Tawke are estimated at $77/bbl while Taq Taq domestic market sales (including Bazian refinery) realised $75/bbl, a 6% increase on 2013. Tawke domestic market sales realised $56/bbl, a 7% decrease on 2013.

Genel's revenue guidance for 2015 has been revised from $500m-600m at a Brent price of $80/bbl to $350m-400m at a Brent price of $50/bbl.

The company says a combination of low development and operating costs and production sharing contract structure creates a robust Kurdistan Region of Iraq oil business very resilient to sustained low oil prices.

Genel produced 69,000 barrels of oil equivalent per day in 2014 - an increase of 58% year-on-year with significant further growth expected this year.

"Only two more categories now and the first is to look at the potential for Genel and Gulf Keystone in Kurdistan. These stocks have had an additional bumpy ride as not only have they had the oil price to contend with but by being where they are they have a geo-political risk factor. Genel has not only Taq Taq and Tawke to give them massive increases in production this year but also have the gas development at Miran which I have always said is the jewel in the crown. The market is concerned about payments for their crude from the KRG but I believe that it is not in the interests of the Government not to pay them and in due course this will happen. Genel is a major beneficiary of Turkey’s ongoing need for energy and with significant booked reserves of oil and gas should be on the shopping list of any cash-rich major as it is just too cheap in the long run. As for GKP it too must be looking very interesting at around 50p, at long last the company has hit the targets it set itself and although it too is awaiting payments for crude oil delivered it will also get paid. There is little doubt that once payments start becoming more regular the company can beef up its operation and will deliver value for shareholders. I think that GKP could easily get taken over as now it has started proper production from Shaikan and with modest pipeline connections can steadily increase its oil sales." -

HTTP://www.malcysblog.com/2015/01/oil-price-the-bucket-list-and-finally/

Thanks for posting that cyril ,i bookmarked that site ,useful to read ..

HTTp://news.sky.com/story/1419273/ex-bp-boss-hayward-lures-monaghan-to-genel

New CFO for Genel

By Mark Kleinman, City Editor

The oil company led by Tony Hayward, the former boss of BP, is poised to announce a shake-up of its executive team four years after it was founded.

Sky News has learned that Genel Energy, which is listed on the London Stock Exchange, will issue a statement on Monday in which it will say that Julian Metherell is to step down as its chief financial officer.

Mr Metherell, a former partner at Goldman Sachs, is expected to retire at Genel's annual meeting in the spring, having played a key role in the company's development.

He will be replaced by Ben Monaghan, one of the City's top oil and gas sector bankers.

I went long here at 618P this morning ,it's trading at nearly a year low ,i shall be out very quickly with a small profit hopefully .

Oil on a run again ,i might hold a bit longer here .

Out for 30 points .

Nice trade jimmy.

Thanks Chris , i should have dived in on TLW as well this morning .

I must say i see these oil stocks as day trades at the moment ,if you can grab a few points ,in and out .

Your probably right Jimmy, I'm hoping TLW can push on has breached 50DMA. Probably tank now :0)

http://www.investmentu.com/article/detail/43176/interview-john-hofmeister-shell-oil#.VNVLSubEDke

Thanks Cyril interesting article.

Yes cheers cyril .

Removed old news.

StockMarketWire.com
Genel Energy posts a pre-tax loss of $312.8m for the year to the end of December against a profit of $186.5m in 2013.

The company - the largest independent oil producer in the Kurdistan Region of Iraq - said revenues rose by 49% to $520m and earnings before interest, tax, depreciation, amortisation and exploration expense increased to $410.6m from $274.8m.

Production in 2014 rose by 58% year-on-year to 69,000 barrels of oil equivalent per day and the group expects significant further growth this year.

Chief executive Tony Hayward said: "2014 was a year of significant growth for Genel. Operational progress and the completion of the KRI-Turkey pipeline helped to drive production up 58%, which in turn led to an increase in both revenue and EBITDAX of almost 50%. Growth is set to continue in 2015, with production forecast to rise by a further 40%.

"At a time of a depressed oil price we remain focused on the importance of a robust balance sheet. Genel's financial flexibility is a significant strength, and allows us to target spending on growth at our producing assets in the KRI, as we wait for the economic situation in Iraq to improve sufficiently to facilitate regular export payments.

"In the first quarter of 2015 we have stepped up the domestic monetisation of our KRI production. Given that this production is amongst the lowest-cost in the world, and domestic realisations strong, this provides a significant interim source of revenue until predictable export payments are in place. We expect to receive regular payments for exports as we move through 2015."

DeutscheBank note:
"A solid set of results that should reassure that Genel’s balance sheet and ability to generate cash in the domestic market is capable of absorbing a period of uncertainty over export payments. Revenue for 2014 came in at $520m, ahead of consensus ($501m) and in line with company guidance for 'low-end' of $500-600m. Production of 69.4kboe/d is consistent with January's trading statement, as is the level of cash generation and year-end cash balance of $489m. As expected, Genel has moved to accrual accounting at year-end and booked a $233m receivable for Kurdistan export sales that have been completed but revenue has not yet been received. Detail provided on the temporary domestic sales arrangement is encouraging, particularly on price realisation. A domestic price of $40-45/bbl (Brent less transportation) for Taq Taq's light oil is much stronger than we had anticipated and above guidance of 'mid $30's' from other operator's, albeit for different fields where crude quality is somewhat lower. The outlook for 2015 has been maintained with production of 90-100kboe/d, sales of $350-400m (at $50 Brent) and capex of $200-250m (- 70% Y/Y). Operationally, installation of temporary production facilities at Taq Taq to increase capacity to 150kb/d is on track for completion in 1Q15.
Expansion of production facilities at Tawke towards 200kb/d also appears on track for early 2015. Elsewhere, no further investment is planned at the underperforming Dohuk gas field and minimal levels of production are now expected. As a consequence, 2P reserves have been de-booked and an $81m impairment has been taken."

Genel expressed optimism on Thursday that the resolution of a longstanding Iraqi government dispute could soon enable the Kurdistan oil explorer to secure regular payment for its crude exports.

A disagreement between the Kurdistan Regional Government and Iraq’s federal administration over the distribution of oil revenues led to the freezing of payments by Baghdad to the KRG. This in turn resulted in the KRG not paying Genel and other oil producers in the region for much of their oil exports.

**However, this week the KRG was paid $208m by the Iraqi government, following an agreement between Erbil and Baghdad aimed at resolving the dispute over oil revenues and other federal funds.**

http://www.ft.com/cms/s/0/76d8c972-c33e-11e4-9c27-00144feab7de.html#axzz3TYNXQjax

Completion of private placement of U.S. $230 million senior unsecured bonds
Genel Energy ("Genel") plc is pleased to announce that it has priced an issue of U.S. $230 million in senior unsecured bonds ("the Bonds") due 14 May 2019 on the same commercial terms as the existing GENEL01 PRO U.S. $500 million bond. The Bonds were issued at a market price in line with the trading level of GENEL01 PRO.

Fosun Group was a lead investor in the bond issue.

Financial discipline and a robust balance sheet are crucial in the oil and gas industry, and a source of competitive advantage at a time of low oil prices. The net proceeds of the Bonds will be used to underpin Genel's financial strength and provide flexibility to implement our refocused Kurdistan Region of Iraq ("KRI") strategy. After the successful issuance of the Bonds, the average cost of debt on the Company balance sheet is 8.7%.

In the KRI, production at the Taq Taq and Tawke fields continues to increase as planned. New gross daily production records have been set at both fields, with Taq Taq production having recently surpassed 142,000 bopd, and Tawke 147,000 bopd.

The temporary domestic market sales channel, implemented by the Kurdistan Regional Government ("KRG"), under which contractors receive 50% of domestic sales proceeds, has run successfully for Taq Taq through February and March 2015. Around 30-40,000 bopd continues to be sold locally, and cash received in line with expectation. Domestic sales from Tawke have increased throughout March.

Ticking up quite nicely.

Credit Suisse stays outperform on Genel, target cut to 1,045p from 1,095p.

Former BP Chief Sees Oil Price Rebound Soon
By Andy Tully - Thu, 23 April 2015 21:23

BP’s former CEO Tony Hayward agrees with OPEC that its strategy of maintaining the oil glut and thereby helping to drive down prices will quickly crush the US shale boom and that oil prices will rally sooner than many people expect.

Hayward, one of 42 speakers at the Financial Times’ Global Summit in Lausanne, Switzerland, on April 20-22, said the average global price of a barrel of crude will soon be around $80, up from the current price of about $60, demonstrating that OPEC is “the most successful cartel in history.”........ more

http://www.ft.com/cms/s/2/56c5749e-e8f7-11e4-b7e8-00144feab7de.html#axzz3YE4ZMn8j

Deutsche Bank stays buy on Genel, target cut to 700p from 750p.

StockMarketWire.com
Genel Energy chief executive Tony Hayward has taken over as chairman following the resignation of Rodney Chase.

Hayward - formerly head of BP - will be succeeded as CEO by Murat Ozgül, previously president, Turkey and the Kurdistan Region of Iraq.

Hayward will oversee the strategy of the company and the effective running of the board, with Murat focusing on the day-to-day management of Genel, including operational performance and the delivery of Genel's growth projects in the Kurdistan Region of Iraq.

"Hayward said: "Rodney has been a driving force in the establishment of Genel Energy as a respected London-listed company. It has been a great pleasure working with him, and on behalf of the Board and the Company I would like to express my sincere gratitude for his leadership through the IPO and over the past four years, which has helped make Genel the company it is today"

The company also issued a trading update. Hayward said: "Production has grown rapidly in the first half of the year, increasing 41% year on year, with operational delivery driving record volumes above 100,000 bopd net to Genel on peak days. This increase has been integral in helping the Kurdistan Regional Government achieve its export goals, and the KRG is firmly committed to ensuring companies are paid in full for their production.

"Over 600,000 bopd of exports are now flowing to Ceyhan and, as distribution of the resulting revenues stabilises, the KRG is moving towards a financial position from which to make export payments to contractors.

"Progress has also been made on our world-class Miran and Bina Bawi assets, the development of which provides a huge opportunity for both Genel and the Kurdistan Region of Iraq as a whole. We are now working on putting in place all of the components to progress this transformational project to its development and ultimate monetisation."

StockMarketWire.com
Genel Energy will announce its results for the six months ended 30 June on 6 August 2015.

StockMarketWire.com
Genel Energy's revenues rose to $199.3m in the six months to the end of June - up from $192.1m last time.

Earnings before interest, tax, depreciation, amortisation and exploration expense increased to $158.1m from $138.0m but pre-tax profits fell to $31.4m from $70.7m.

Chief executive Murat Ozgül said: "Genel's operating performance in the first half of 2015 was strong, with net working interest production up 41% to 88,800 bopd. In recent days the KRG has made a public commitment to pay international oil companies on a sustainable basis from September 2015. These regular and predictable payments will allow Genel to fully capitalise on our strategic opportunities.

"We remain committed to the Kurdistan Region of Iraq and will continue to invest in our existing oil fields while moving our major gas fields forward to development, creating significant value for both Genel and the KRG."

Genel oil situation in Kurdistan

1. Tony Hayward answered the Oil questions. Regarding getting paid. He is very confident the KRG will follow through. In essence, they do what they say they are going to do.

Pipeline started transporting Oil to Turkey yesterday. If there is a problem, they switch a valve, the Oil goes to the domestic market.

They were asked : KRG have advised they need 500,000 bopd to pay govt employees, Pershmerga etc, over and above this amount, what additional amount is needed to pay IOCs. What's the current position ?

Hayward advised, currently * 600,000 bopd being produced. They are strongly confident 700,000 + bopd will be produced by year end. Even at $ 50.00 Oil, * this amount is enough to pay all the basics and all the contractors.

2. By end 2016, they are looking to be producing 1,000,000 bopd. The Company and the whole region has the potential for large production increase.

3. The entire amount produced by Genel can be sold into the Local domestic market if needed. The current requirement capacity in the domestic market is between 120,000 to 150,000 bopd, Genel can provide up to 110,000 bopd.


50% of local sales is paid in advance. Both Genel and KRG though would like to see Oil being exported, better price.

4. KRG have stated, they would pay ongoing obligation from September then as the volumes rise in 2016 they will contribute to catching up on the receivables owed to Genel.

Hayward, said, once Genel are in a regular payment cycle, they will invest on a normal course.

5. No response from Baghdad to KRG announcement. ' Better to ask somebody else '.


Development of major gas agreement with Turkey.

A GSA has been discussed between the govts of Kurdistan and Turkey for two years. In the past six months the bones of this have been put together. 600 to 1,200 mill cu ft per day to Turkey at $ 1.20 from 2019.

KRG relationship with Turkey remains very strong. $ 10 billion bi-lateral trade agreement.

First Gas to Turkey in 2019. Looking for equity partnership with Turkey + financing debt Turkish banks keen + private companies. Turkish appetite huge for local gas. Project eminently more finance-able than otherwise could expect as have a Midstream ' vehicle ' in place.

Barclays note:
"Our view: Management’s commentary is consistent with our expectations, upbeat following the KRG’s recent commitment to providing some compensation for exports from September while underlining progress on the issue is required to justify further investment in Kurdistan. Revisions to the Miran-Bina Bawi fiscal arrangements require further analysis, but at this stage we believe tangible progress on the project is more significant than any minor revisions to its valuation. We reiterate our Overweight rating.
Preparing for export payments
The Taq Taq and Tawke fields continue to perform in line with guidance, averaging 88,000b/d net to Genel in H1/15. There is no change to FY15 guidance of 90-100,000b/d. Looking further ahead, we believe the following comment underlines the KRG’s need to act on export payments: “Further development activity on Genel’s producing KRI assets will depend on the evolution of payment for exports from both fields”. In our view, the outlook for 2016E production is subject the KRG following through on its stated to desire to begin transferring a portion of export revenues from September. We currently forecast 2016E net production of 127,600b/d.

Plans for three appraisal wells in Kurdistan during 2016 – Peshkabir, Ber Bahr and Chia Surkh – underline the potential for further growth within Genel’s existing portfolio and management’s eagerness to move these projects forwards. However, again we see this activity as dependent upon export payments materializing.
Miran-Bina Bawi fiscal term revisions
The original agreement for the Miran-Bina- Bawi oil and gas upstream project (announced in November 2014) have been revised. Genel states the project economics have been preserved and capex estimates look to be in line with prior guidance. The proposed gas price Genel is to receive has increased to $1.20/Mcf from $0.78/Mcf. However in our opinion, the re-introduction of an R-factor to determine profit sharing and 5% royalty on oil/condensate revenues may impact assets valuations that deviate from Genel’s planning assumptions on the outlook for oil prices. Our 816p/shr Tangible NAV includes 319p/share on a risked basis for the project.
Financials as expected
H1 revenue of $199m is consistent with the trading update, as is net debt of $216m. The P&L benefitted from lower than forecast Cost of Sales, resulting in EPS of $0.11 vs. our $0.06 estimate. We calculate Post-tax Cash Flow from Operations (exc. working capital) was $131m, in line with our forecast and underlining the portfolio’s ability to generate healthy cash flows in the current oil price environment. FY15 guidance is unchanged.

Update on acquisition of interest in the Bina Bawi field
Genel Energy plc is pleased to announce that on 14 September 2015 it signed a definitive sale and purchase agreement with OMV to acquire its 36% operated stake in the Bina Bawi field. Completion of the acquisition is subject only to government approval, which is expected shortly.

The consideration comprises an upfront payment of $5 million. A contingent payment of $70 million is payable once gas production exceeds agreed threshold volumes from the Miran and Bina Bawi fields. A further contingent payment of $75 million is payable two years after the date of the second payment.

In consideration of the Kurdistan Regional Government ('KRG') agreeing to the transfer of OMV's stake in the Bina Bawi field, on completion of the acquisition Genel will offset US$25 million against monies owed by the KRG to Genel in respect of past expenses incurred on the Miran field.

StockMarketWire.com
Genel Energy says that following approval from the Kurdistan Regional Government, the acquisition of OMV's 36% operated stake in the Bina Bawi field has completed. As a result, Genel now holds an 80% operated interest in Bina Bawi.

StockMarketWire.com
Genel Energy has described the third quarter as a turning point for the company.

Chief executive Murat Ozgül says September's payment for exports, coupled with local sales, has stabilised the receivable owed to the company by the Kurdistan Regional Government.

Ozgül continues: "An October payment for Taq Taq and Tawke is set to be received imminently. With total exports from the Kurdistan Region of Iraq again hitting record levels, and pipeline uptime improving, we have confidence in the KRG's commitment to make regular payments for oil exports." Financials: · Revenue for Q3 2015 of $77 million, with total revenue for the first nine months of 2015 of $276 million

· In the third quarter of 2015, the Company received cash proceeds of $45 million, which included domestic Kurdistan Region of Iraq ("KRI") sales proceeds and the September 2015 export payment of $24.5 million. The receipt of the September payment led to cash balances increasing by $7 million in the period to $481 million at 30 September 2015

· A further payment for Taq Taq and Tawke exports of $24.5 million is expected imminently

· Q3 2015 local sales proceeds of $20.5 million reflect Genel's ability to divert production into the local market at short notice during periods of export pipeline downtime

· Total cash proceeds from KRI domestic and export sales for the first nine months of 2015 were $95 million

· In Q3 2015, crude oil realisations averaged $37/bbl, a 52% decrease on Q3 2014, due to the impact of lower global oil prices

Receipt of payment for KRI oil exports from Taq Taq field
Genel Energy plc ('Genel') is pleased to announce that the Taq Taq field partners have received a gross payment of $30 million from the Kurdistan Regional Government for oil exported through the Kurdistan Region of Iraq-Turkey pipeline. Genel's share of the gross Taq Taq payment is $16.5 million.

StockMarketWire.com
Genel Energy has sold a 20% participating interest in the Chia Surkh production sharing contract to Petoil Inc. 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%.

Never traded this one Harry, had a spurt on last couple of days and on track to breach 25 and 50DMA. Watching.

Oil is currently up over $50 pb, so think that may be the reason for the rise here.

Probably right.
LATEST BROKER VIEWS

Date Broker New target Recomm.
26 Oct Beaufort... N/A Speculative Buy
26 Oct Investec 445.00 Buy
21 Oct Beaufort... N/A Speculative Buy
21 Oct Barclays... 500.00 Equal weight
21 Oct JP Morgan... 610.00 Overweight
8 Oct JP Morgan... 610.00 Overweight
23 Sep Deutsche Bank 520.00 Buy
16 Sep JP Morgan... 700.00 Overweight
14 Sep Barclays... 500.00 Equal weight
11 Sep Canaccord... 560.00 Buy
Broker Recommendations for Genel Energy

Probably right.
LATEST BROKER VIEWS

Date Broker New target Recomm.
26 Oct Beaufort... N/A Speculative Buy
26 Oct Investec 445.00 Buy
21 Oct Beaufort... N/A Speculative Buy
21 Oct Barclays... 500.00 Equal weight
21 Oct JP Morgan... 610.00 Overweight
8 Oct JP Morgan... 610.00 Overweight
23 Sep Deutsche Bank 520.00 Buy
16 Sep JP Morgan... 700.00 Overweight
14 Sep Barclays... 500.00 Equal weight
11 Sep Canaccord... 560.00 Buy
Broker Recommendations for Genel Energy

Same as PMO and TLW , once oil stops going up down they will go ,got to get in when things are bleak .

Thanks Jimmy, back to trade what you know for me then :0)

Chris i missed this rise but i have bought PMO and TLW down low and sold on small rises , PMO below 70p and TLW below 200p .
I have not as yet bought this .
PS Tullow has been quite easy to read , as Buffet says buy when there is blood on the street and for me that applies to these smaller oilers .

Ok Jimmy thanks.

.

Barclays Capital retains equal weight on Genel Energy, target cut from 500p to 350p.

Sky News has learnt that Genel Energy, which Mr Hayward has chaired since stepping aside from the chief executive's post this year, is in the early stages of discussions about a tie-up with New African Global Energy (New Age).

Sources said on Tuesday that the talks were at an early stage, and were just one of a number of conversations taking place between Genel and other oil groups as the industry readjusts to the protracted slump in oil prices.

Genel's oil production is currently focused on Kurdistan, but it has a string of exploration assets in Somaliland, Morocco, the Ivory Coast and elsewhere in Africa.

One banker described the company as a "good fit" with New Age, which has a similar geographic profile, operating across Africa and in Kurdistan.

The structure of any potential deal is unclear, with one possibility that Genel could use its shares as part of a consideration to acquire New Age.

The two companies are said to be of roughly comparable size.

New Age is owned by a group of private shareholders, including the Wall Street investment manager Och Ziff, the oil trader Vitol and an undisclosed group of sovereign wealth funds.

A merger of Genel and New Age would come as oil explorers examine ways to dilute the impact of the downturn in oil prices, with many analysts and executives anticipating that it may continue for another 12 months.

Cazenove comment:
"Rationale for Genel. From a Genel perspective, it would provide a more diverse production base, with lower risk to revenues, an issue which has clearly impacted its market rating. It would also add barrels that are easier to finance (via RBL or RCF type bank loans) for growth. It would likely make Genel the largest reserve holder in European E&P.
New Age has a portfolio that overlaps in several regions – Kurdistan, Morocco, Ethiopia. Judging from New Age’s website, it has multiple years of growth and a decent exploration hopper.
Rationale for New Age. From a New Age perspective, a deal would be a way of publically listing the business without a formal IPO process that would likely be very difficult given the current market backdrop. A merger with listed Genel could provide a potential exit route for some New Age shareholders and, of course, a public market valuation, which private equity looks for. One of Genel’s key assets is its seasoned UK listing, in our view.
Questions to answer ahead of a possible merger. 1) Dilution risk – Clearly the structure of the deal is important. From our perspective Genel shares are trading at a steep discount to NAV, meaning it could be NAV dilutive to do a paper deal of size (assuming an all equity exchange).
Such dilution could be reduced if Genel does not pay a premium – arguably New Age should pay the premium given access to Genel’s UK listing. 2) Valuation – What is New Age’s fair value? We do not have a good line of sight on reserves (New Age website cites 861 mmboe 2P +2C), or production (is early stage in the KRI and Congo is likely around 5-10 kbopd currently). 3) Balance sheet – New Age does not have publically traded debt, but it has some convertible debt. 4) Growth profile – New Age’s website cites 5 development projects, of which 3 are LNG developments. We do not know how much capex needs to be deployed to achieve this growth and how much of this growth is still unfunded. Africa has not been a happy experience for Genel shareholders given an expensive and ultimately unsuccessful exploration campaign."

Credit Suisse today reaffirms its outperform investment rating on Genel Energy (LON:GENL) and cut its price target to 430p (from 465p).

StockMarketWire.com
Genel Energy has announced that the Taq Taq field partners have received a gross payment of $30m from the Kurdistan Regional Government for oil exported through the Kurdistan Region of Iraq-Turkey pipeline.

Genel's share of the gross Taq Taq payment is $16.5m.

Genel also notes the announcement on 3 December 2015 from DNO ASA, as operator of the Tawke field, that the Tawke field partners have received a gross payment of $30m for oil exported through the Kurdistan Region of Iraq-Turkey pipeline.

Together, these represent the third monthly export payments made to contractors in 2015.

Is the share price tells you something?
well there is two reason at the moment not to buy the shares

1 - the TREND
The trend is your friend they say, it has been this way for some time now

2 - Oil price
once again today the Oil price has got into a new lows

Conclution:
wait till all reverses

Barclays Capital today upgrades its investment rating on Genel Energy (LON:GENL) to overweight (from equal weight) and left its price target at 350p.

below is the 5 year chart, merely to highlight the plight of all e+p oilies

StockMarketWire.com
Genel Energy is well positioned to weather the downturn and thrive when the oil cycle turns, chief executive Murat Ozgul says.

Ozgul says: ""2015 was a very challenging year for the oil industry, with pronounced oil price weakness which has continued into 2016. In addition, the funding of the security effort in northern Iraq, influx of refugees into the KRI and cessation of budget transfers from Baghdad continue to place a very significant strain on the KRG's finances.

"Against this backdrop, the recent receipt of four consecutive payments for pipeline exports is highly encouraging. These payments, totalling almost $100 million, have stabilised our receivable and maintained our healthy cash position. We recognise the efforts that the KRG has made to meet its commitments to IOCs in a very difficult economic environment. "With low oil prices expected to persist in the near-term, we have focused on cost control by cutting capital expenditure and overheads. With production costs of less than $2 per barrel, a robust cash position, low capital commitments and a material resource base, Genel is well positioned to weather the downturn and thrive when the oil cycle turns."

Investec today reaffirms its buy investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 230p (from 350p).

StockMarketWire.com
Genel Energy has announced that the Taq Taq field partners have received a gross payment of $16.3 million from the Kurdistan Regional Government for oil exported through the Kurdistan Region of Iraq-Turkey pipeline.

Genel's share of the gross Taq Taq payment is $9 million. As the Ministry of Natural Resources announced on 1 February, the payment is based on the monthly production entitlement, inclusive of crude quality differentials compared to Brent and the deduction of applicable transportation charges and handling costs. Payments will be subject to full reconciliation with the terms of the production sharing contract in due course. An additional $3.2 million payment ($1.8 million net to Genel), equivalent to five percent of the gross monthly netback revenue of the field, has been made towards the recovery of the receivable. The KRG has stated that payments will be increased as oil prices rebound. In total, Genel received $10.8 million for the Taq Taq field for the month of January.

Genel notes payment for KRI oil exports

StockMarketWire.com

Genel Energy has noted the announcement from DNO ASA, as operator of the Tawke field, that the Tawke field partners have received a gross payment of $17.99 million towards the monthly entitlement for January, for oil exported through the Kurdistan Region of Iraq-Turkey pipeline. An additional $3.46 million gross payment has been made towards the recovery of outstanding entitlements for past deliveries. The payments will be shared pro-rata by DNO and Genel.

At 8:14am: (LON:GENL) Genel Energy PLC share price was +3.5p at 121.5p

disaster beckons.

Genel Energy will announce results for the year ended 31 December on 3rd March 2016.

Taq Taq reserves update
Genel Energy issues the following announcement in respect of its reserves position at the Taq Taq field (Genel 44% working interest).

In its Trading and Operations Update on 20 January 2016, the Company announced that it was reviewing its Taq Taq reservoir model following production declines seen at the field during 2015.

The results of this internal review and the McDaniel & Associates ('McDaniel') Competent Person's Report ('CPR') on Taq Taq are now largely complete. The initial gross recoverable proven and probable ('2P') reserves (referred to in the industry as Estimated Ultimate Recovery, or EUR) estimated by McDaniel for Taq Taq are summarised in the table below:

Proven plus Probable (2P)
EUR as of 30 June 20111 , mmbbls683
EUR as of 31 December 2015, mmbbls 356
1. original McDaniel Taq Taq CPR (effective 30 June 2011)

As of 31 December 2015, the Taq Taq field had produced 184 mmbbls gross. The remaining gross recoverable 2P reserves estimate as of 31 December 2015 is therefore:
Proven plus Probable (2P) Reserves as of 31 December, mmbbls 172

The vast majority of the original Taq Taq oil in place was reservoired within fractures in Cretaceous carbonate formations. The Cretaceous has three principal producing units - the Qamchuqa, Kometan and Shiranish - with the Shiranish being the shallowest interval. Genel's internal Taq Taq review and the CPR process have focused on the fracture porosity within the Shiranish reservoir. Both processes have utilised recently acquired data to establish that the fracture porosity within the Shiranish is lower than estimated in the original McDaniel CPR dated 30 June 2011.

The updated McDaniel CPR will be completed shortly.

Genel currently anticipates that gross Taq Taq production will average c.80,000 bopd in 2016. Gross Taq Taq production is currently estimated at 65-75,000 bopd and 50-70,000 bopd in 2017 and 2018 respectively.

The Company's production guidance of 60-70,000 bopd for 2016 is unchanged.

Genel expects to record an impairment, subject to audit, of approximately $1 billion to the Taq Taq field carrying value in its 2015 accounts. The impairment includes the revised assumptions on recoverable reserves announced today and the impact of lower oil prices.

Barclays comment:
"Our view: Although a reserve downgrade at Taq Taq was previously flagged and therefore should have been widely anticipated, we believe the scale of the cut is likely to surprise many investors. Trading at a 48% discount to our current 237p/share Core NAV, versus a peer group average premium to Core NAV of 9% we believe the stock was already pricing in a significant portion of the reserve cut.
Taq Taq gross 2P reserves have been reduced from 683mmbbls to 356mmbbls on an estimated ultimate recovery basis. With 184mmbbls produced by the end of 2015, remaining gross 2P reserves now stand at 172mmbbls. The cut – following an internal review and updated Competent Person’s Report – therefore represents a 65% cut in remaining 2P reserves versus the current assumption within our Genel NAV. We have previously stated that a 25% cut in reserves would result in a ~20% reduction in our valuation of the asset – Genel’s 44% stake in Taq Taq is the company’s most material asset within our 320p/share Tangible NAV.
Genel expect completion of the updated CPR shortly, but have stated the reserve downgrade should have no impact on 2016 production guidance of 60-70,000b/d. Taq Taq is forecast to produce 80,000b/d gross in 2016, but is then scheduled to decline in 2017-18. Our current valuation assumes a ramp-up to ~150,000b/d.
The reserve update combined with a lower oil price outlook is set to result in a ~$1bn impairment charge on the asset in Genel’s FY15 results, due to be published on 3 March."

CitiBank comment:
"Significant downgrade to reserves at its core Taq Taq asset.
Genel has reduced the expected gross ultimate recovery from its Taq Taq field from 683mbbls to 356mbbls due to revised assumptions on the fracture porosity within the Shiranish reservoir at the field. As a result of this reserve downgrade, Genel also expects to record an impairment of c.US$1bn due to a lower carrying value for the Taq Taq field in its FY15 results, which is c.28% of its current equity value. Our Buy-case on Genel was based on a view that despite the political uncertainties in the Kurdistan region, Genel held a significant low cost resource base that was undervalued and remained relevant to the wider industry. However, the news today changes this investment thesis and also makes it more challenging for Genel to fund its Miran gas development, in our view. We reduce our core NAV to 120p/share and downgrade Genel Energy to Neutral/High Risk (2H).
Recoverable resource at the Tawke field will be questioned
The cut to the Taq Taq resource base creates increased uncertainty on the underlying assumptions (and ultimate resource recovery) at the DNO-operated Tawke field. DNO is currently preparing an updated resource report for the Tawke field. We have increased the risking of the valuation of the Tawke field to 85% (from 90%) in our Genel NAV.
Ability to fund its major gas development becomes more challenging
With a significant cut to reserves and consequently future cashflows from its core Taq Taq field, we believe the ability for Genel to finance the development of its Miran/Bina Bawi gas development becomes more challenging. Genel has estimated upstream capex of c.US$1bn before first gas. We have moved our valuation of Genel’s gas development from core NAV to base NAV given this uncertainty.
Updating NAV and estimates, downgrading to Neutral
We have lowered our core NAV to 120p/share to reflect the lower reserves at Taq Taq, increased risking of the Tawke field moving the Miran/Bina Bawi gas field into base NAV. With continued political uncertainty (and ongoing pipeline issues), we believe Genel could trade at a discount to core NAV in the near-term."

Stay clear this could be 25p sometime.

Investec today reaffirms its buy investment rating on Genel Energy PLC (LON:GENL) and raised its price target to 245p (from 230p).

Is - HARRY - out of pocket already with today's buys?
a little bird told me he bought today two lots average under 80p
silly boy wait for tomorrow, the rule is buy the second day of falling heavily

No mentor.......Harry didn't buy recently.....he bought ages ago at a much higher price. Fortunately only a small stake so can wait awhile before averaging down.

oh, so is the serial abuser back again under yet another alias?

mentor got so hammered on several stocks that he just vanished ,after telling everyone else they were stupid. :)

I wondered what happened to him .

i suspect he still posts under that moniker on advfn, but as i restrict myself to a single thread there, and he hasn't infected that, i'm not certain

JP Morgan Cazenove today reaffirms its overweight investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 248p (from 410p).

on what planet are these guys living?

Mea culpa - HARRY- but I am -pim - someone is copying your post then, but (he) also follows TLW, MONI, PMO, BARC, GLEN, like you.
Strange but true, or someone is telling porkies?

------------------
downbutnotout- 29 Feb 2016 Mon 12:43
Posts: 2,614
RE: TLW
i made 2 buys of GENL. average under 80p. so im in a small paper profit at the mo. seems to be recovering slowly now.
---------------------
HARRYCAT - 29 Feb 2016 13:44 - 287 of 293
Investec today reaffirms its buy investment rating on Genel Energy PLC (LON:GENL) and raised its price target to 245p (from 230p).
------------------
downbutnotout 29 Feb 2016 Mon 15:05
Posts: 2,618
Investec today reaffirms its buy investment rating on Genel Energy PLC (LON:GENL) and raised its price target to 245p (from 230p).

some nasty people around this place, they look like a pack of wild dogs, or maybe are hyenas

edited - well has double up, the post not the share price

StockMarketWire.com
Genel Energy's pre-tax losses rose to USD1.2bn in the year to the end of December - up from USD312.8m in 2014.

Revenues fell to USD343.9m from USD519.7m and earnings before interest, tax, depreciation, amortisation, impairment and exploration expense fell to USD279.4m from USD410.6m.

Chairman Tony Hayward said: "The sustained low oil price has placed a significant strain on both the industry and the economy of the Kurdistan Region of Iraq.

"As the external environment has deteriorated, we have been proactive in ensuring that your Company remains robust. Our production costs are amongst the lowest globally, and our asset base allows us to flex our capital expenditure programme to align with our cashflow and to preserve a robust balance sheet.

"Despite the reserve reassessment and write down at Taq Taq, which is very disappointing, our asset base remains strong, with many years of production ahead of us.

"Despite the difficulties of the external environment, 2015 saw record production for Genel, up 22%. Payments for pipeline exports in the second half of the year, followed by a payment mechanism being confirmed in 2016, both demonstrated the firm commitment of the Kurdistan Regional Government to fully compensate IOCs for all production, both in the past and going forward."

Chief executive Murat Ozgul said: "We recognise and share the disappointment of the recent Taq Taq reserves update. Both Taq Taq and Tawke remain low-cost oil fields by any global benchmark. The fields are set to be significantly cash generative going forward, with a discretionary investment programme aiming to maximise the value of the remaining reserves. Our 264 million barrels of net 2P reserves comprise a robust oil business well positioned in the current oil price environment.

"The instigation of the new payment mechanism by the KRG Ministry of Natural Resources in February 2016 provided clarity over the timing and quantum of our monthly receipts for export payments, recognising our receivable and putting in place the process through which it will be recovered.

"We are now starting to make real progress in the development planning for our KRI gas business. It remains a unique opportunity underpinned by a government signed gas sales agreement."

JP Morgan Cazenove today reaffirms its overweight investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 237p (from 248p).

There is a pretty harsh downtrend here. Possibility of a trade north to close a gap if you can be arsed @ 114p. Far better imo to wait till trend reverses if it ever will and go long then. But hey, horses for courses. To breach 50DMA and stick would be a good start.

Genel notes update on Tawke reserves

StockMarketWire.com

Genel Energy has noted that DNO ASA, as operator of the Tawke field has today published updated estimates of field reserves. Genel has a 25% working interest in the Tawke field.

Genel says the timing of DNO ASA's reserves update is in line with the disclosures made in the company's full year 2015 results on 3 March. The full DNO annual statement of reserves, providing further context, can be found at www.dno.no. At 31 December 2015, Tawke gross proved (1P) reserves are estimated by DNO ASA at 387.0 mmbbls, a 21% increase from the 319.9 mmbbls at year-end 2014, with the increase driven by improved confidence on primary recovery rates at the field.

At 31 December 2015, gross proved plus probable (2P) reserves are estimated at 543.0 mmbbls, compared to 680.3 mmbbls at year-end 2014. The reduction from year-end 2014 reflects 2015 production of 49.3 mmbbls, technical revisions of 5.5 mmbbls and a recategorisation of 82.5 mmbbls from 2P reserves to 2C contingent resources pending both a review of enhanced recovery options at Tawke and a decision to commit funds towards a field-wide redevelopment programme.

The updated Tawke 2P reserves compares to Genel's previously reported figure of 631.0 mmbbls, which was disclosed as part of the full year 2015 results.

The 631.0 mmbbls figure was a pro-forma estimate derived from DNO ASA's 31 December 2014 Tawke 2P reserves of 680.3 mmbbls less 2015 gross production of 49.3 mmbbls.

Genel Energy also announced a reverse tender offer to holders of Genel Energy Finance plc's USD730 million GENEL01 PRO senior unsecured callable bonds with ISIN NO0010710882.

The company, being the sole shareholder of Genel Energy Finance plc and guarantor of the bonds, intends to offer one repurchase price at which all relevant bonds are to be repurchased. The repurchase price will be determined through a reverse book-building ('Dutch auction').

The buy-back offer is being carried out for cash management purposes and the company intends to buy back a minimum of USD50 million in nominal value of bonds.

At 8:01am: (LON:GENL) Genel Energy PLC share price was +5.5p at 84.75p



Story provided by StockMarketWire.com

LATEST BROKER VIEWS

Date Broker New target Recomm.
18 Mar Liberum Capital 100.00 Hold
10 Mar RBC Capital... 115.00 Sector Performer
8 Mar Liberum Capital 100.00 Hold
4 Mar JP Morgan... 237.00 Overweight
2 Mar Canaccord... 210.00 Speculative Buy
1 Mar Barclays... 130.00 Overweight
1 Mar JP Morgan... 248.00 Overweight
29 Feb Investec 205.00 Buy
26 Feb Canaccord... 290.00 Speculative Buy
9 Feb Barclays... 350.00 Overweight
Broker Recommendations for Genel Energy

22 March 2016



Genel Energy plc



Receipt of payment for KRI oil exports from Taq Taq field



Genel Energy plc ('Genel') is pleased to announce that the Taq Taq field partners have received a gross payment of $12.6 million from the Kurdistan Regional Government ('KRG') for oil sales during February 2016. Genel's share of the gross Taq Taq payment is $6.9 million.



As agreed with the KRG, sales into the local market and deliveries to the Bazian refinery during February 2016 were invoiced at the wellhead export netback price, in line with the payment mechanism announced by the KRG on 1 February 2016.



An additional $2.5 million payment ($1.4 million net to Genel) has been made towards recovery of the receivable.



In total, Genel received $8.3 million for the Taq Taq field for the month of February.



Gross oil sales from the Taq Taq field in February 2016 averaged 62,091 bopd. Production and sales during the month were impacted by the shut in of the KRI-Turkey export pipeline between 17 February and 10 March 2016. Flows into the export pipeline from the Taq Taq field resumed on 11 March 2016.



-ends-



For further information, please contact:



Genel Energy

Phil Corbett, Head of Investor Relations

Andrew Benbow, Head of Public Relations
+44 20 7659 5100




Vigo Communications

Patrick d'Ancona
+44 20 7830 9708

Jefferies International today downgrades its investment rating on Genel Energy PLC (LON:GENL) to underperform (from buy) and cut its price target to 62p (from 248p).

Genel Energy PLC Double In 12 Months? - By Motley Fool | Thu, 7th April 2016

An oil stock that could double

Genel Energy (LSE:GENL) can breakeven with Brent crude at $20 per barrel -- half the current oil price. Unfortunately, these ultra-low costs have not prevented the Kurdistan producer's shares falling by 85% since May 2015.

Falling oil prices have depressed the shares of all oil companies. Things have been made worse for Genel because the firm is owed about $422m for past oil production. Genel also operates on the fringes of a major conflict.

Genel's most recent lurch lower was in February. Following production declines in 2015, the company was forced to downgrade its estimate of proven and probable oil reserves for the Taq Taq field by almost 50%.

Despite all of this, Genel looks cheap by any normal measure of value. The risk is all political: will the war with ISIS spread into Kurdistan? Will the Kurdish government ever be able to pay its bills?

Genel could easily double, perhaps even more. But it could fall further too. This is a very speculative buy, in my view.

Receipt of payment for KRI oil exports from Tawke field
Genel Energy plc ('Genel') notes the announcement from DNO ASA, as operator of the Tawke field, that the Tawke field partners have received a gross payment of $16.87 million from the Kurdistan Regional Government for March crude oil deliveries to export and local markets from the Tawke field under the payment arrangement announced earlier in 2016.

An additional $3.24 million gross payment has been made towards the recovery of outstanding entitlements for past deliveries.

The payments will be shared pro-rata by DNO and Genel.

Having a go at closing that wee gap and finally above 50DMA.

Gap closed. Where next? haven't got a scooby doo.

As long as sp stays above 50DMA and or 100p worth a punt to next target 140p would be my guess. Watching.

Long this morning on the spreads @ 116.98 target 140p stop 98.98

Stop to entry for risk free trade. If oil goes south profit taking will kick in.

Added 128.01

Stops to 124.98

Struggling to breach 130p, overbought on RSI may have to consolidate to go higher.

Not exactly setting the world on fire, but 130p cleared for now.

What's going on?

no news on reuters or anywhere else, so perhaps just some strange rogue price
note that there is no trading volume shown either

Very strange cyners.

LATEST BROKER VIEWS

Date Broker New target Recomm.
3 May Goldman Sachs 113.90 Neutral
14 Apr Jefferies... 62.00 Underperform
7 Apr Jefferies... 62.00 Underperform
23 Mar Barclays... 115.00 Overweight
23 Mar Deutsche Bank N/A Buy
21 Mar Canaccord... 165.00 Speculative Buy
21 Mar Barclays... 130.00 Overweight
18 Mar Liberum Capital 100.00 Hold
10 Mar RBC Capital... 115.00 Sector Performer
8 Mar Liberum Capital 100.00 Hold
Broker Recommendations for Genel Energy

StockMarketWire.com
Genel Energy has appointed Paul Schofield as chief operating officer. Schofield has 35 years' management and technical experience encompassing all aspects of the upstream oil and gas business. He started his petroleum engineering career at Shell in 1981, subsequently working with Enterprise Oil, Tuscan Energy and Hess.

Receipt of payment for KRI oil exports from Tawke field
Genel Energy plc ('Genel') notes the announcement from DNO ASA, as operator of the Tawke field, that the Tawke field partners have received a payment of $16 million from the Kurdistan Regional Government ('KRG') for oil sales during April 2016.

The payment reflects part settlement of the invoiced amount of $32.3 million for April 2016 Tawke oil sales. This figure incorporates $27.1 million towards contractor monthly entitlement and $5.2 million towards recovery of historical receivables.

The payment will be shared pro-rata by DNO and Genel.

Tawke production in April averaged 118,918 barrels of oil per day (bopd), of which 117,815 bopd were earmarked for export, up from an average of 74,546 bopd in March.

Only for oil sales in April, just like GKP....
Back payments must be getting dealt with differently now?
I hope so....

Receipt of payment for KRI oil exports from Tawke field
Genel Energy plc ('Genel') notes the announcement from DNO ASA, as operator of the Tawke field, that the Tawke field partners have received a payment of $16.3 million from the Kurdistan Regional Government for oil sales during April 2016.

The payment follows the receipt of $16 million as announced on 27 May 2016.

The payment completes settlement of the invoiced amount of $32.3 million for April 2016 Tawke oil sales, an amount that incorporates $27.1 million towards contractor monthly entitlement and $5.2 million towards recovery of historical receivables.

The payment will be shared pro-rata by DNO and Genel.

StockMarketWire.com
Equity research analysts at Barclays Capital say now might be a good time to "pause for thought" in respect of Kurdistan focussed oil and gas company Genel Energy (LON:GENL), given the share price recovery which has taken place since the Taq Taq reserve downgrade in February.

The broker reckons that, while the company is still providing exposure to improving payments for oil exports in Kurdistan, further material upside will now depend on it advancing the Miran Bina Bawi gas project.

It added: "We believe this can become a highly accretive project for Genel, but do not expect investors to ascribe significant value to the opportunity until the commercial arrangements are concluded and development timescales confirmed."

Barclays has downgraded its investment rating to underweight from overweight but increased its price target to 130 pence per share from 115 pence.

StockMarketWire.com
Genel Energy has noted the announcement from DNO ASA, as operator of the Tawke field, that the field partners have received a payment of $15.0 million from the Kurdistan Regional Government for oil sales during May 2016.

The payment reflects part settlement of the invoiced amount of $39.28 million for May 2016 Tawke oil sales. This figure incorporates $32.95 million towards contractor monthly entitlement and $6.34 million towards recovery of historical receivables.

The payment will be shared pro-rata by DNO and Genel. Tawke production in May averaged 117,757 barrels of oil per day (bopd), of which 114,848 bopd were earmarked for export.

StockMarketWire.com
Genel Energy has noted the announcement from DNO ASA, as operator of the Tawke field, that the Tawke field partners have received a payment of $24.28 million from the Kurdistan Regional Government for oil sales during May 2016. The payment follows the receipt of $15 million as announced on 21 June 2016. The payment completes settlement of the invoiced amount of $39.28 million for May 2016 Tawke oil sales, an amount that incorporates $32.95 million towards contractor monthly entitlement and $6.34 million towards recovery of historical receivables. The payment will be shared pro-rata by DNO and Genel.

Is that more then they have been getting per month from Tawke?
Good news if so....

Goldman Sachs today reaffirms its neutral investment rating on Genel Energy PLC (LON:GENL) and raised its price target to 141.80p (from 113.90p).

Bought some earlier @ 121.90p

Time for the bounce
Today 11:39
Bought some at 121.90p
reason why below....

Oil price on the way up for the last couple days and the stock is today starting to move higher after being at oversold position at this point.

chart with Indicators

Genel Energy PLC (GENL) Given ” Buy” Rating at Canaccord Genuity

Posted by Donnie Miller on Jul 11th, 2016

Genel Energy PLC (LON:GENL)‘s stock had its ” buy” rating restated by research analysts at Canaccord Genuity in a report issued on Monday. They currently have a GBX 195 ($2.59) price target on the stock.
Canaccord Genuity’s target price would suggest a potential upside of 61.83% from the stock’s previous close.

A number of other analysts have also recently weighed in on GENL. Liberum Capital reaffirmed a “hold” rating and issued a GBX 100 ($1.33) price objective on shares of Genel Energy PLC in a report on Friday, March 18th.
Barclays PLC reaffirmed an “overweight” rating and issued a GBX 130 ($1.73) price objective on shares of Genel Energy PLC in a report on Monday, March 21st.
Deutsche Bank AG reaffirmed a “buy” rating on shares of Genel Energy PLC in a report on Wednesday, March 23rd.
Jefferies Group cut shares of Genel Energy PLC to an “underperform” rating and dropped their price objective for the stock from GBX 248 ($3.29) to GBX 62 ($0.82) in a report on Thursday, April 7th.
Finally, Goldman Sachs Group Inc. lowered their target price on shares of Genel Energy PLC from GBX 123.40 ($1.64) to GBX 113.90 ($1.51) and set a “neutral” rating on the stock in a research note on Tuesday, May 3rd.

Two research analysts have rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of GBX 235.06 ($3.12).

Genel Energy PLC (LON:GENL) opened at 120.625 on Monday. The company’s 50 day moving average is GBX 131.24 and its 200 day moving average is GBX 117.80. Genel Energy PLC has a 52 week low of GBX 71.75 and a 52 week high of GBX 481.50. The stock’s market cap is GBX 335.80 million.

Genel Energy Plc is a holding company. The Company is engaged in the business of oil and gas exploration and production in the Kurdistan Region of Iraq (KRI). The Company’s segments include Kurdistan and Africa. The Company has interests in approximately two producing fields in the Kurdistan Region of Iraq, Taq Taq and Tawke, with access to local and international markets

"Oil outlook; where are oil prices heading" ?

oil-outlook-where-are-oil-prices-heading

StockMarketWire.com
Genel Energy notes the announcement from DNO ASA, operator of the Tawke field, that three new production wells have been completed at the Tawke field in the Kurdistan Region of Iraq as part of a stepped up drilling program kicked off in July 2016.

The Tawke-31 well, targeting the main Cretaceous reservoir will be brought on production following an acid stimulation program.

Two additional wells targeting the shallow Jeribe reservoir, Tawke-33 and Tawke-34, are also being readied for production. A further Jeribe well, Tawke-37, will be spudded next week.

The four wells are expected to cost less than $20 million in total and add about 10 percent to field output capacity.

Earlier this month the Peshkabir-2 well was spudded, aiming to appraise the Jurassic reservoir and explore the Cretaceous horizon on a previous discovery to the west of the main Tawke field.

This well marks the completion of the current drilling program at the Tawke license which was initiated on the back of monthly export payments from the Kurdistan Regional Government.

Plans to engage a third drilling rig were dropped in September though the company expects to re-start investments to boost production to a targeted level of 135,000 bopd following the resumption of regular and predictable payments.

Tawke production during the third quarter averaged 109,159 bopd, of which 108,759 bopd was delivered for export through Turkey.

GMP comment:
"Genel Energy (GENL LN); SPECULATIVE BUY: £3.50 – DNO (DNO NO) (not covered) announces an operating update in Kurdistan. Plans to engage a third drilling rig were dropped in September due to irregular payments from the KRG. The company expects to re-start investment to boost production at Tawke (Genel WI: 25%) to a targeted level of 135,000 bbl/d following the resumption of regular and predictable payments. Tawke oil production during 3Q16 averaged 109,159 bbl/d (GMPe: 120 mbbl/d).
Market reaction: slightly negative on what looks to be a more muted production outlook by DNO. This should not come as a big surprise to investors given the ongoing payment difficulties with the KRG. Genel has in any case a more prudent view on Tawke. The ongoing four well campaign is expected to boost Tawke production to c.120 mbbl/d (+10%) excluding natural decline. This level would be marginally below our forecast of 125 mbbl/d for 4Q16. This probably means that Genel’s FY16 production will be near the lower end of the Company’s guidance of 53-60 mbbl/d."

Trading and operations update
Genel Energy plc issues the following trading and operations update in respect of Q3 2016. The information contained herein has not been audited and may be subject to further review.

Murat Özgül, Chief Executive of Genel, said:
"Genel has received $163 million in cash proceeds during 2016, underpinning the drilling of successful production wells across Taq Taq and Tawke.

The KRG has made significant progress in restructuring the region's economy. With export volumes at Ceyhan having increased following a new deal with the federal government, and the recent recovery in the oil price, this bodes well for the region's cash flows. Despite the recent delay in payments, we remain optimistic that they will continue, facilitating further investment across our KRI assets."

http://www.moneyam.com/action/news/showArticle?id=5437792

Another GKP on the cards......no proper regular payments..

Biggest faller today.

Canaccord Genuity today downgrades its investment rating on Genel Energy PLC (LON:GENL) to speculative buy (from buy) and cut its price target to 150p (from 195p).

Barclays Capital today (05/12/16) reaffirms its equal weight investment rating on Genel Energy PLC (LON:GENL) and raised its price target to 130p (from 120p)

Goldman Sachs today (16/12/16) reaffirms its neutral investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 78.20p (from 78.70p).

Numis today (23/12/16) reaffirms its buy investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 175p (from 180p).

StockMarketWire.com
Genel Energy says the third and final well of the 2016 Taq Taq drilling programme, TT-16y, has been successfully drilled and completed in the main Shiranish reservoir.

The well is naturally flowing at c.8,000 barrelsof oil per day.

Genel - which has a 44% working interest in the field - said gross Taq Taq production is currently c.40,000 bopd, with Q4 2016 averaging 45,000 bopd to date.

The Pilaspi reservoir is being readied for production in January 2017, and is expected to contribute c.3,000 bopd. The three Shiranish wells (TT-27x, TT-07z, and TT-16y) drilled in the 2016 campaign are currently producing a combined c.9,000 bopd. Discussions are ongoing between the Taq Taq partners over a potential workover of TT-07z.

This well flowed on test at 5,000-9,000 bopd, although as a result of mechanical issues experienced during well completion activities TT-07z has recently been producing at 400 bopd. Genel's net working interest production from the Taq Taq and Tawke fields has averaged 53,500 bopd in 2016 to date.

Genel Energy plc notes the announcement made this morning by DNO ASA, as operator of the Tawke licence (Genel 25% working interest).

The Peshkabir-2 well currently drilling on the Tawke PSC has discovered oil in the Cretaceous horizon in the southern flank of the Peshkabir field.

The well flowed at a stable rate of 3,800 barrels of 28° API oil per day on a 52/64 choke from an open hole test of a 170-metre interval. Pressure data supported by observations of oil shows from cuttings and side wall cores indicate a Cretaceous oil interval in excess of 300 metres.

Peshkabir-2 was spudded last October to explore the Cretaceous horizon and appraise the previously tested deeper Jurassic reservoir on a 2012 discovery 18 kilometres to the west of the Tawke field.

The well, currently drilling ahead of schedule and under budget, is expected to reach total depth of 3,500 metres and will be completed in the Jurassic by early February. Pre-spud estimates for drilling, open hole testing of the Cretaceous and completion stood at $17.5 million.

The Tawke partners are considering a number of options to step up the appraisal of the new Cretaceous discovery, including a geological side-track in the central part of the Peshkabir structure or a third well. Options are also under consideration for possible early Peshkabir production and trucking to the Tawke field's gathering, processing facility and export facilities at Fishkabur some 12 kilometres away.

The Tawke partners will provide an update on the resource potential of both the Cretaceous and Jurassic horizons following post well evaluation of all data acquired during Peshakabir-2 operations.

StockMarketWire.com
Genel Energy said 2016 was a major step forward for the monetisation of oil exports from the Kurdistan Region of Iraq.

Chief executive Murat Ozgul said: "We received $207m in cash proceeds for oil sales and receivable recovery.

"These payments in turn allowed for work programmes to resume at Taq Taq and Tawke.

"The KRG has confirmed that payments will continue, allowing us to plan with confidence for 2017."

Genel's net production averaged 53,300 barrels of oil per day in 2016.

Looking ahead, the company said production guidance for 2017 was set at 35-43,000 bopd.

It said: this assumed the delivery of the Taq Taq work programme and a prudent level of contingency with respect to the Tawke operator's current 2017 production expectation.

It added: "The work programmes at Taq Taq and Tawke are subject to change depending on the results of development drilling and payments from the KRG for current sales and receivable recovery

"Capital expenditure, net to Genel, at the Taq Taq and Tawke fields in 2017 is forecast at $50-75m.

"Expenditure on the KRI gas business is estimated at $10m."

Capex on the 2017 Africa exploration programme is estimated at $40m, which includes c.$30m Morocco exploration expense.

It said 2017 operating expenditure, net to Genel, at the Taq Taq and Tawke fields was estimated at $30-35m.

Jefferies comment:
"Company production guidance for 2017 is set at 35-43,000bpd which puts JEFe 42,270kbpd at the upper end of the range but means consensus will move down from its 51,600kbpd level. Mid-point of GENL's 2017 guidance would be -27% y/y from the 53,300bpd average Group production reported for 2016 (which itself was -37% y/y from 84,900bpd ave. Group production in 2015).
GENL's 2016 net production was split 50:50 between Taq Taq (GENL 44% WI of 60,100kbpd gross production) and Tawke (GENL 25% Wi of 107,300kbpd gross production). But new 2017 guidance emphasizes the differing fortunes of the fields as Taq Taq is expected to average 24-31,000bpd in 2017 (-54% y/y at the mid point!) whereas Tawke "is expected to remain stable at the current (Jan 2017) rate of 115,000bpd (+7% y/y from107.3kbpd gross in 2016).
Firm 2017 Taq Taq work program includes only one workover and one new appraisal well in the north of the field with further work contingent on "regular & predictable" KRG payments and partner approval. An updated Field Development Plan and CPR for Taq Taq are both "on track for completion in 1Q17". It is virtually certain, in our view, that this CPR will result in a further downgrade of "Estimated Ultimate Recovery (EUR) at the Taq Taq field from the 356mmb gross 2P reserves estimated on 29 Feb 2016, which was a 48% reduction from 683mmb previously. The stability of production at Tawke is therefore the most important positive factor in a GENL investment case. Tawke will also see further production support drilling/workover in 2017 as well as appraisal of the adjacent Peshkabir discovery is ongoing and with it the possibility of early production via Tawke facilities.
Capex of $61m in 2016 is forecast to rise to $100 - 125m overall in 2017 of which $50 - 75m is for Taq Taq & Tawke, $10m is for KRI gas business (Miran/Bina Bawi) and $40m is for African exploration (of which $30m is future Morocco exploration commitment and we note GENL is in discussions with over the nature, scope & timing of this activity).
Net Debt of $240m at 31 Dec 2016 is slightly ahead of our $227m estimate and made up of $408m unrestricted cash balances and ~$650m bond (7.5% coupon, due May 2019). With all the issues GENL faces it is a relative positive that net debt is flat on $239m reported at 31 Dec 2015. Considering our production estimate for 2017 is inline and assuming Genel are able to defer most of that $30m Morroco exploration commitment we would expect the company to cover its costs in 2017 and even generate FCF of $20-30m.
The KRI gas assets of Miran (75% WI) and Bina Bawi (80% WI) are expected to record a material impairment in 2016 accounts from the current $1.427bn carrying value (this in addition to the $198m carrying value impairment of the separate Chia Surkh asset already guided to). Efforts are continuing to farm-down the Miran/Bina Bawi licenses but with "firm 2017 activity expected to be largely technical and commercial in nature" the project continues to be stalled (and remains outside our PT) without a farm-in partner able to truly move the project further."

Barclays Capital today reaffirms its equal weight investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 90p (from 100p).

StockMarketWire.com
Genel Energy has finalised documentation of previously agreed terms of amended and restated production sharing contracts and gas lifting agreements for both the Miran and Bina Bawi gas fields.

The amended and restated PSCs and GLAs for Miran and Bina Bawi incorporate the commercial terms as announced in the term sheets signed in 2015 by Genel and the Kurdistan Regional Government.

With the PSC and GLA terms formally confirmed, Genel will now be able to progress the project.

The company said it remained committed to developing these large scale, low-cost, onshore gas fields, which would form the cornerstone of gas exports to Turkey under the 2013 KRG-Turkey gas sales agreement.

StockMarketWire.com
Genel Energy has removed its previous guidance of gross average production of 24-31,000 barrels of oil per per day this year for the Taq Taq field and expected to take a $181m hit on the field carrying value following a fall in estimated reserves.

The company - which has a 44% working interest - said the field was currently producing around 19,000 bopd, compared with about 36,000 bopd at the end of 2016 and recently key producing wells had exhibited high rates of decline as a result of water breakthrough, which had exacerbated the decline rate across the field.

It said 1P, 2P and 3P reserves were estimated at 25.8; 59.1 and 95.0 million barrels respectively at the end of February compared with 60.0; 171.8 and 416.4m barrels respectively at the end of December.

An update said: "Gross 2P reserves for the Taq Taq field as of 28 February 2017 are estimated by McDaniel at 59 MMbbls, compared to 172 MMbbls at 31 December 2015.

"Cumulative oil production from the Taq Taq field to 28 February 2017 is 207.9 MMbbls. Of this figure, 1.8 MMbbls has been produced in 2017.

"The further reduction in reserve estimates for Taq Taq is a consequence of a reassessment of the gross rock volume above the oil water contact and fracture porosity in the undrained Cretaceous Shiranish reservoir.

"This follows an analysis of reservoir surveillance data and well performance in 2016 and the first two months of 2017.

"The McDaniel CPR states that there is still significant uncertainty in Taq Taq oil reserves.

"In particular, reserves are dependent on the Shiranish formation fracture porosity in the un-swept portion of the reservoir, which remains very difficult to estimate."

The company said that a result of the reserve downgrade, it expected to record an impairment, subject to audit, of $181 million to the Taq Taq field carrying value in its 2016 accounts.

StockMarketWire.com
Genel Energy's operating losses rose to $1,222.9m in the year to the end of December - up from $1,104.1m

Revenues fell to $53,300m from $84,900m and EBITDAX fell to $130.7m from $279.4m after the group booked an impairment of exploration assets of $779.0m - up from $144.1m in 2015.

2016 net production averaged 53,300 bopd (2015: 84,900), at the lower end of revised guidance.

Chief executive Murat Ozgul said: "While 2016 was a challenging year at Taq Taq, Tawke continues to produce at a stable level, and regular payments for our oil production in the Kurdistan Region of Iraq helped generate free cash flow in the year.

"The improved financial position of the Kurdistan Regional Government bodes well for a continuation of these payments.

"The signing of definitive agreements in February 2017 allows us to focus on concluding negotiations with potential partners, helping unlock the significant value in our gas assets.

"We move into 2017 with clear priorities: maximising the value of our oil assets, accelerating the recovery of the receivable, and building on the increased momentum in the development of our gas assets."

Deutsche Bank today reaffirms its sell investment rating on Genel Energy PLC (LON:GENL) and cut its price target to 63p (from 67p).

Kurdistan Operational Update
Genel Energy plc ('Genel') notes that DNO ASA ('the Company'), as operator of the Tawke PSC, has issued the following update:

"The expanded 2017 Tawke program includes eight new production wells, of which six are Cretaceous and two shallow Jeribe wells. A third drilling rig has been mobilized following receipt of regular payments for oil exports through Turkey.

Elsewhere on the Tawke license, the Company produced an average of 3,000 barrels of oil per day from the Jurassic horizon of the recently drilled Peshkabir-2 well during a two-week test period in April. These volumes were trucked to DNO's facilities at Fish Khabur and exported. Extended testing of the shallower Cretaceous discovery in the Peshkabir-2 well has commenced. The Peshkabir-3 appraisal/production well will spud this summer.

The Company is preparing an accelerated development plan utilizing an early production facility to bring the Peshkabir field onstream by the end of this year."

StockMarketWire.com
The fundamentals of Genel Energy's business are sound and the strategic focus is clear despite recent changes at board and management level, shareholders will be told at today's annual general meeting.

Chairman Tony Hayward will say: ""Genel has a clear strategic focus - maximising the generation of free cash flow from our oil assets, accelerating the recovery of the receivable for unpaid oil sales, and crystallising value from the KRI gas business.

"The Tawke field continues to perform in line with expectations, and drilling success at Peshkabir is expected to add to production from the end of 2017.

"While production at Taq Taq has continued to fall in 2017 the rate of decline has recently slowed, although it remains too early to extrapolate long-term conclusions from this trend. "In the year to 31 May 2017 net production to Genel has averaged 37,700 bopd.

"On a gross basis, Tawke has averaged 110,000 bopd, and Taq Taq 23,300 bopd in the period. Production from Tawke in May 2017 averaged 108,000 bopd, and for Taq Taq 17,000 bopd.

"Additional investment at Taq Taq will be targeted and appropriate in order to generate free cash flow.

"At Tawke, as previously announced, the receipt of regular payments for oil exports has led to an expansion of the 2017 work programme to include eight new production wells, of which six are Cretaceous and two shallow Jeribe wells.

"We have now received oil export payments for 18 consecutive months since September 2015. These payments resulted in Genel generating free cash flow in 2016.

"Payments have continued into 2017, and in the year to date the Kurdistan Regional Government has made gross payments of $316 million relating to oil sales and receivable recovery from Tawke and Taq Taq, of which $122 million is net to Genel.

"The economic situation in the Kurdistan Region of Iraq continues to improve.

"Stable exports are generating significant revenue, and the success of government cost-cutting programmes has moved the KRG towards fiscal breakeven.

"We expect to continue receiving payments for exports throughout the year, and are working with the KRG to accelerate the recovery of the receivable for past oil sales.

"Ongoing clarity over payments, amongst other factors, gave us the confidence to repurchase $252.8 million nominal of our bonds in April 2017. The bonds were repurchased at a 14% discount to par.

"The Company is in the process of cancelling all Bonds repurchased, including the $55.4 million repurchased in 2016. Following the buy back, externally held debt now stands at $421.8 million. This has reduced interest outflow from c.$55 million per annum to c.$32 million per annum.

"Unrestricted cash balances at 31 May 2017 are estimated at $232 million, with IFRS net debt at $171 million.

"There are just under two years until our bonds mature in May 2019 and the payment evolution, coupled with progress on the accelerated recovery of the KRG receivable and progress on the gas business, will influence our approach to refinancing.

"Moving on to the gas business, 2017 is a very important year. While there is still much work to do on monetising the gas assets, there is renewed momentum behind the project.

"The signing of definitive agreements in February 2017 was a significant step forward that has allowed us to focus on negotiations with potential partners.

"These are ongoing, and we look forward to updating you in due course.

"Onshore Somaliland, the acquisition of 2D seismic data commenced in March 2017. The data is being acquired as part of a Somaliland government owned speculative 2D seismic acquisition project, with the company purchasing the associated data from the government. To date, over 500 km has been acquired.

"There have recently been a number of changes at Board and management level, and board composition is under review.

"However, the fundamentals of the business are sound, our strategic focus is clear, and there are significant opportunities for value creation in the portfolio."

Tawke update
Genel Energy plc ('Genel') notes that DNO ASA, as operator of the Tawke PSC, has today issued an update on licence activity.

The Tawke partners have resumed appraisal drilling at the Peshkabir discovery on the Tawke licence in the Kurdistan Region of Iraq following extended testing of the Cretaceous and Jurassic reservoirs in the Peshkabir-2 well.

The Peshkabir-3 well was spud on 8 July as part of a fast track field development plan including the acquisition and installation of an early production facility by year-end 2017 to be followed by a pipeline connection to the Tawke export terminal at Fishkhabur.

Three Cretaceous productive horizons (Upper Shiranish, Lower Shiranish and Qamchuqa) tested 3,800 bopd, 4,000 bopd, and 1,100 bopd, respectively, of 28⁰ API gravity crude oil during a two-week cased hole testing program in May. The Cretaceous column in the Peshkabir-2 well is estimated to range between 380-590 meters.

Two productive horizons in the deeper Jurassic formation tested 2,665 bopd and 400 bopd, respectively, of 25⁰ API gravity crude oil, again over a two week cased hole testing program in April. The Jurassic column in the Peshkabir-2 well is estimated to range between 125-160 meters.

The well's Lower Shiranish Cretaceous zone has been placed on production since late May at an average rate of 4,500 bopd, trucked to Fishkhabur some 12 km away and commingled with Tawke production for pipeline export through Turkey.

Tawke licence production from the two fields has averaged 115,000 bopd month-to-date in July.

yet another stock that suckered many ......

Numis today reaffirms its buy investment rating on Genel Energy PLC (LON:GENL) and raised its price target to 140p (from 135p).

Definitive agreement reached with KRG on receivables
Genel Energy plc ('Genel' or 'the Company') is pleased to announce a definitive agreement with the Kurdistan Regional Government ('KRG') relating to unpaid entitlements for past oil sales from the Taq Taq and Tawke fields.

Cash flow is expected to be materially enhanced over the course of the agreement, delivering significant value creation for all stakeholders.

A Receivable Settlement Agreement ('RSA') has been signed between Genel and the KRG, with a Tawke Production Sharing Contract ('PSC') Amendment also being executed. In return for cancelling and waiving its rights to outstanding receivables relating to unpaid entitlements for past oil sales, Genel will benefit from the following:

· In addition to proceeds for current sales, Genel will receive 4.5% of Tawke gross field revenues for the five year period from 1 August 2017 to 31 July 2022 ('the Genel Override')
· Genel's capacity building payments ('CBP') on the profit share element of its Tawke entitlement will be eliminated over the entire life of the Tawke field
· The KRG has agreed with all audit adjustments on the petroleum costs on the Tawke PSCs and on Genel's share of petroleum costs in the Taq Taq PSC for the period up to 31 July 2017
· Outstanding production bonuses and PSC liabilities on the Taq Taq and Tawke fields totalling c.$30 million net to Genel have been set off against the receivable and as a result are no longer payable

Genel Energy PLC (LON:GENL) shares tumbled as tensions rose over the future of the region in northern Iraq.

The Kurdish population voted overwhelmingly in favour of independence (it got 93% of the vote) in a referendum earlier this week, and the apparent mandate has not been well received in Baghdad.

Iraq’s central government has reportedly suspended all international flights into Erbil, the Kurdish regional capital.

The country’s prime minister Haider al-Abadi refused to recognise the result.

Baghdad claims the vote was an unconstitutional move to take control over oil revenues in the region and nearby disputed territories like Kirkuk.

Some 650,000 barrels of oil is produced per day in the region, with 150,000 bopd coming out of Kirkuk.

Brendan Long, analyst at WH Ireland, said: “Shutting in production would be easily done by neighbours that are all hostile to an independent and thriving Kurdistan.”

“The threat of logistical isolation at minimum would cut production growth to a halt.”

He pointed to new risks including potential impediments to western engineers and oil service personnel, access to equipment, potential problems for oil trading.

Long added: “Iraq has called for diplomatic missions to be recalled from Erbil, which we consider to be very hostile given the implication that their security may be at risk.”

Real threat of war developing more quickly

Looking specifically at the potential impacts on producers in the country, such as GKP and Genel, he highlighted: “With a potential war looming and limited support from OECD countries so far, the KRG may be inclined to hoard cash, potentially putting stresses on cash payments to oil companies operating in the region.

“We have been watching this simmer for years and see the recent escalation as an unprecedented flare-up with a real threat of war developing more quickly than we had envisaged.”

Tehran is taking a stance against the Kurdistan Regional Government by temporarily halting oil product shipments into the semi-autonomous region, according to reports emerging from the area.

The Iran Road Maintenance and Transport Organization also banned oil product trades from the KRG to Iran, Tasnim news agency said.

The move comes just days after the Iraqi Kurds voted to secede from Iraq and form their own government, despite opposition from Baghdad and the international community. Next, the KRG is due to set up a committee that will negotiate the terms of the secession with Iraq in a process expected to take years to complete.

"Our relationship with the Kurds, in our view, will not change," said U.S. State Department spokesperson Heather Nauert during a press briefing on Thursday. The U.S. had previously opposed having the referendum, preferring, instead, for all Iraqis to be focused on rebuilding a war-torn nation.

Iran’s investment in the Kurdish population of Iraq has been great. According to Foreign Affairs, the nation is the only one with a substantial Kurdish population to maintain good relations with Erbil over several decades.

Update on Tawke PSC
Genel Energy plc ('Genel') notes that DNO ASA, as operator of the Tawke PSC, has today issued an update on licence activity.

The Peshkabir-3 well on the Tawke PSC is currently undergoing extended production testing across a horizontal section in excess of 1.2 kilometres of Cretaceous and Jurassic aged reservoirs. A total of ten oil zones and one gas zone have been identified for testing. The first oil zone tested flowed in excess of 3,000 bopd on a 64/64" choke.

The Peshkabir-2 well continues to produce at a steady rate of 4,700 bopd from one of four production zones and is commingled with over 100,000 bopd from the adjacent Tawke field for export. The Peshkabir early production facility remains on track for start-up by year-end 2017.

Operations and investment activity at the Tawke PSC continue uninterrupted.

StockMarketWire.com
Genel Energy is to carry out at a 3D seismic campaign across the Sidi Moussa licence following an agreement over its remaining exploration commitment on the acreage with the Moroccan government.

Genel said its previous commitment to drill one well on the licence has been replaced by an undertaking to carry out a 3D seismic campaign across the Sidi Moussa acreage.

It said planning had started, with seismic acquisition expected to begin in 2018.

It said the current phase of the licence had been extended until February 2020. Genel said the 3D seismic was expected to materially de-risk the prospectivity of the Sidi Moussa licence.

Genel also said it noted that DNO ASA, as operator of the Tawke PSC, had today issued an update on licence activity.

The Peshkabir-3 well on the Tawke PSC is currently undergoing extended production testing across a horizontal section in excess of 1.2 kilometres of Cretaceous and Jurassic aged reservoirs.

A total of ten oil zones and one gas zone have been identified for testing. The first oil zone tested flowed in excess of 3,000 bopd on a 64/64" choke. The Peshkabir-2 well continues to produce at a steady rate of 4,700 bopd from one of four production zones and is commingled with over 100,000 bopd from the adjacent Tawke field for export.

The Peshkabir early production facility remains on track for start-up by year-end 2017.

StockMarketWire.com
Genel Energy said the TT-29w well, which was drilled to appraise the northern flank of the Taq Taq field, had been completed as a producer after successfully encountering oil bearing Cretaceous reservoirs.

Genel - which has a 44% working interest in the field - said the well was drilled to a measured depth of 3,100 metres and encountered good quality oil bearing Cretaceous Shiranish and Kometan reservoirs.

Six zones were subsequently tested over a 20 day period, with test rates of up to 6,400 bpd (40/64 inch choke) of 48 degrees API oil delivered from individual zones.

Four of the five tests in the Shiranish produced dry oil, with one test tight. The Kometan reservoir test produced oil with a 40-50% water cut, confirming the oil water contact within the Kometan reservoir at this location in the field.

TT-29w production has commenced from the Lower Shiranish reservoir at a rate of 3,200 bpd of dry oil on a restricted 24/64 inch choke, with the expectation that this rate will increase following an initial observation period.

Genel said: 'The TT-29w well has proved a current oil water contact at this location on the northern flank of the field at a level at least 145 metres deeper than pre-drill estimates.

'Combined with the testing results, management is optimistic for the potential of the northern flank of the Taq Taq field.

'However, it is too early to estimate what impact the well result will have on reserves, long-term production rates or future investment activity in the northern flank and the field as a whole.' Genel said that in addition to the positive result from TT-29w, the TT-30 Pilaspi well was also successfully drilled as a producer in November and is currently producing around c.650 bopd.

A further Pilaspi development well (TT-31) is planned before the end of 2017.

Gross production from the Taq Taq field is currently 15,100 bopd.

StockMarketWire.com
Genel Energy said an evaluation by RPS Energy Consultants had confirmed a significant upgrade to the combined 2C gross raw gas resource estimate for the Bina Bawi and Miran West fields.

The evaluation was carried out as part of RPS's work on the updated competent person's reports for the fields.

Genel said the RPS assessment of the combined gross 2C raw gas resource for both fields now stands at 14,792 Bscf, a figure which excludes associated condensate volumes attributable to the upstream partners.

The RPS assessment of the combined gross 2C condensate volumes potentially recovered from raw gas production at both fields totals 137 MMstb.

As at end-2016 Genel's reported 2C resources included net raw gas resources from Miran and Bina Bawi totalling 1,421 MMboe, which related to Genel's respective 80% and 75% interests in the Bina Bawi and Miran PSCs at that time.

In February 2017 the company increased its interest in both PSCs to 100%, resulting in a combined pro-forma end-2016 Genel 2C resource of 1,815 MMboe (10,530 Bscf).

The 2018 RPS estimates of combined 2C resources from both fields have increased c.40% compared to the pro-forma end-2016 2C resource.

StockMarketWire.com
Genel Energy said it had the solid platform and financial flexibility needed to execute its growth plans during 2018 and beyond.

Genel said a strong final quarter of 2017 completed a very positive year for the company.

It said 2017 net production averaged 35,200 bopd, with Q4 averaging 32,760 bopd.

Genel said combined net production from the Tawke and Taq Taq PSCs during 2018 was expected to be close to Q4 2017 levels.

Chief executive Murat Ozgul said: 'During the quarter, the successful Peshkabir-3 well result tripled production at the field to c.15,000 bopd, a figure that is expected to grow in 2018, while at Taq Taq the TT-29w well was brought on production.

'Payments for oil sales were received from the Kurdistan Regional Government in every month of 2017, totalling over $260m net to Genel and leading to $140m of free cash flow in the year.

'The 2017 payments were bolstered by the receipt of override payments in the fourth quarter under the receivable settlement agreement, and payments have continued in early 2018.

'The recently announced CPRs reaffirmed the potential of the Bina Bawi and Miran fields, with combined 1C gross raw gas resource estimates higher than the gas volumes agreed under the gas lifting agreements.

'The upstream field development plans are expected to complete shortly, and will help define the roadmap to unlocking the value in these major resources.

'The successful debt refinancing in late 2017, and the expectation of ongoing material free cash flow, provides us with a solid platform and financial flexibility to execute our growth plans during 2018 and beyond.'

StockMarketWire.com
Genel Energy said Wednesday production would be slightly ahead of guidance as output from its Peshkabir field in Iraq exceeded expectations.

Average net production for 2018 expected would be slightly above guidance of about 32,800 barrels of oil a day, and the exit rate production at the end of the year was expected 'considerably higher' than this figure, the company said.

The upbeat outlook on production were supported by positive results from wells at Peshkabir, which were expected to lead to a 'material' increased reserves, the company added.

For the three months to 30 September, the company production averaged 33,700 barrels of oil a day received cash proceeds of $85m, taking the total cash proceeds received so far this year to $236m.

Capital expenditure for 2018 was expected to be towards the bottom end of the previously stated $95m-to-125m guidance range, while operating expenditure for 2018 was expected to come in at about $25m, lower than previous guidance of about $30m. 'Genel continues to rapidly increase both production and cash, and is now in a net cash position, said Murat Ozgul, Chief Executive of Genel. 'Peshkabir is once again exceeding expectations, and drilling on the Taq Taq and Tawke fields provides the potential for working interest production to continue to grow. This can further increase our already material free cash flow generation. With notable opportunities in the portfolio, Genel is well positioned to generate significant shareholder value.'