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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

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.”