13th Jul 2015 07:33
LONDON (Alliance News) - Genel Energy PLC Monday said Chairman Rodney Chase has resigned from the company and said production in the first-half of the year rose by around 41% year-on-year as it reiterated its full-year production guidance but slashed its capital expenditure budget.
Tony Hayward has been appointed Chairman in his stead, with former president of the company's Turkish and Iraqi operations, Murat Özgül, appointed as chief executive of Genel, replacing Hayward.
"In his role as chairman, Tony will oversee the strategy of the company and the effective running of the board, with Murat focusing on the day-to-day management of Genel, including operational performance and the delivery of Genel's growth projects in the Kurdistan Region of Iraq," said Genel.
In a separate statement, Genel said production in the first half of the year is up around 41% year-on-year in an operational update ahead of the company's first-half results which will be released on August 6.
Revenue is estimated to total USD200 million for the first-half of the year and the company reiterated its full-year guidance of USD350 to USD400 million.
"Production has grown rapidly in the first half of the year, increasing 41% year on year, with operational delivery driving record volumes above 100,000 barrels of oil per day net to Genel on peak days," said Hayward.
Net working interest production in the first-half averaged 88,800 barrels of oil per day. In May and June, average net interest working production to Genel reached 95,600 barrels of oil per day and Genel reiterated its full-year production guidance of 90,000 to 100,000 barrels of oil per day.
However, despite the increase in production average oil prices fell 42% year-on-year to USD42 per barrel.
"This (production) increase has been integral in helping the Kurdistan regional government achieve its export goals, and the Kurdistan regional government is firmly committed to ensuring companies are paid in full for their production," he added.
Capital expenditure in the first-half totalled USD90 million, mainly on the Taq Taq and Tawke developments in Iraq. However, Genel slashed its capital expenditure budget for the rest of the year, with full-year capital expenditure to come in at USD150 to USD200 million compared to its previous guidance of USD200 to USD250 million.
Genel said it slashed the budget due to the exiting of exploration commitments and capital discipline on its Iraqi operations, it said.
Genel shares were down 2.5% to 464.30 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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