Genel Energy PLC: Somaliland farm-out (1259710)
December 20 2021 - 2:00AM
UK Regulatory
Genel Energy PLC (GENL) Genel Energy PLC: Somaliland farm-out
20-Dec-2021 / 07:00 GMT/BST Dissemination of a Regulatory
Announcement, transmitted by EQS Group. The issuer is solely
responsible for the content of this announcement.
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20 December 2021
Genel Energy plc
Somaliland farm-out
Genel Energy plc ('Genel' or 'the Company') is pleased to
announce it has signed a farm-out agreement relating to the SL10B13
block, Somaliland, with OPIC Somaliland Corporation ('OSC'), with
all its share of future capital investment coming from CPC
Corporation, Taiwan, the state-owned enterprise of Taiwan. Under
the agreement, OSC receives a 49% working interest in the block for
a cash consideration of 49% of all Genel's historic back costs,
plus a cash premium. Genel previously held a 100% working interest,
and will continue as operator.
Somaliland has significant underexplored potential, with geology
analogous to Yemen. The SL10B13 block is highly prospective, with
multiple stacked prospects with over 5 billion barrels of
prospective resources identified from the interpretation of the 2D
seismic data acquisition completed in January 2018.
The field partners will now work together to plan exploration
drilling in this block, with an aim of drilling a well in 2023. It
is currently estimated that a well can be drilled for a gross cost
of c.USD40 million.
The prospective SL10B13 area is c.150 kilometres from the port
at Berbera, offering a route to international markets.
The agreement has been approved by the Government of
Somaliland.
Mike Adams, Technical Director of Genel, said:
"Somaliland is a highly-prospective and largely unexplored
region, with a compelling technical case for the drilling of a
well. Oil seeps confirm a working petroleum system, and one
prospect alone could target over half a billion barrels across
multiple stacked reservoirs. Being able to drill this at a low-cost
to Genel, with a clear route to market in a success case, fits with
our strategy, and we look forward to working with OSC.
During the energy transition the hydrocarbons that should be
developed are those that are low-cost, low-carbon, and deliver a
material and tangible benefit to local people and the host
government. Somaliland has the potential to tick all of those
boxes."
-ends-
For further information, please contact:
Genel Energy
+44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Consulting
+44 20 7390 0230
Patrick d'Ancona
Notes to editors:
Genel Energy is a socially responsible oil producer listed on
the main market of the London Stock Exchange (LSE: GENL, LEI:
549300IVCJDWC3LR8F94). The Company is one of the largest
London-listed independent hydrocarbon producers, with an asset
portfolio that positions us well for a future of fewer and better
natural resources projects. Genel has low-cost and low-carbon
production from the Sarta, Taq Taq, and Tawke licences in the
Kurdistan Region of Iraq, providing financial resilience that
allows investment in growth and the payment of a material and
sustainable dividend, even at a low oil price. Genel also continues
to pursue further growth opportunities. For further information,
please refer to www.genelenergy.com.
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ISIN: JE00B55Q3P39, NO0010894330
Category Code: MSCM
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 131097
EQS News ID: 1259710
End of Announcement EQS News Service
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