15th Jan 2014 10:20
LONDON (Alliance News) - Genel Energy PLC Wednesday said it expects to significantly increase production and sales in 2014 following lower-than-hoped production in 2013.
The oil and gas exploration and production company, with operations in the Kurdistan region of Iraq, said its net working production for the twelve months ended December 31, 2013 averaged 44,000 barrels of oil per day, lower than its production guidance for the year, which was between 45,000 barrels of oil per day and 55,000 barrels.
In October, the company had said that it expects to meet full-year production and financial forecasts as net production increased 10% in its third quarter.
The company said Wednesday that the Tawke site's gross production averaged 39,000 barrels of oil per day, a fall on its 45,000 barrels of oil per day average in 2012. The Taq Taq site's gross production averaged 77,000 barrels of oil per day in 2013, a fall from its third quarter 85,000 barrel average after a fire in the Taq Taq tanker loading station in November. The company said its full operating capacity was restored at the end of 2013.
Genel has a 44% working interest in the Taq Taq site and a 25% working interest in the Tawke site, and its net working production figures reflect those holdings.
Genel set its net production guidance for the full year 2014 at 60,000 to 70,000 barrels of oil equivalent per day, the midpoint being a 50% increase on the 2013 figure. The company expects the increase to come from steadily rising oil export volumes from Taq Taq and Tawke, along with an export pipeline from the Kurdistan region of Iraq coming into operation during the second quarter 2014.
Genel said its sales for 2013 totalled USD350 million, which is within its guidance of between USD300 million and USD400 million, and higher than its 2012 average of USD333 million.
Genel said it expects to achieve sales of USD500 million to USD600 million for the full year 2014, based in the strong production increases. For 2013, capital expenditure totalled USD560 million, and the company expects the 2014 investment figure to be largely the same, projected at USD550 million to USD600 million.
"Drilling is also now underway on our high impact African assets, with four wells set to be drilled this year, each offering the potential for material finds. Overall, 2014 is shaping up to be another very exciting year for Genel," Tony Hayward, Genel chief executive and former boss of BP PLC, said in a statement.
Genel Energy shares were up 0.09% to 1,086.00 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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