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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

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).