22nd Apr 2014 07:16
LONDON (Alliance News) - Genel Energy PLC Tuesday said its production has jumped in its first quarter in line with its guidance, improvements in particular at its Taq Taq and Tawke sites.
The oil and gas exploration and production company, which has major assets in the Kurdistan region of Iraq, said its net working interest production for the three months ended March 31 increased 35% to 50,000 barrels of oil per day compared to the previous year.
The company said its production increases were down to particular improvements at its Taq Taq site, where production averaged 81,000 barrels of oil per day, and its Tawke site, where production averaged 57,000 barrels of oil per day.
The company said its sales realisations were USD69 per barrel for Taq Taq and USD58 per barrel for Tawke, and it expects production and revenues to increase over the course of 2014 as a major new oil pipeline system in the region comes into play.
As such, Genel reiterated its confident 2014 production and revenue guidance of 60,000 to 70,000 barrels of oil equivalent per day and revenue of USD500 to USD600 million.
The company said that the new pipelines commissioning process is substantially complete and that works to replace a short section of the Iraq-Turkey pipeline and install extra compression are expected to be completed in the second half.
Genel also said the construction of its second central processing facility at Taq Taq is progressing on track for completion around year end, with drilling of the first horizontal wells on site to follow.
The company said 2014 capital expenditure guidance remains at USD550 to USD600 million and cash balances at March 31 stood at USD600 million.
Genel Energy shares were down 0.2% to 926.00 pence early Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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