Genel Shares Barely Move on Half-Year Results

By John Lee.
Genel Energy, the London listed exploration and production company and largest independent oil producer in the Kurdistan Region of Iraq, has announced its half year results for the six months to 30 June 2012.
Shares in the company closed at 700p on Thursday, up just 0.8%.

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