">
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

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.'