Wednesday, Dec 21, 2011
-- Genel and Longford confirm both sides in talks on Genel acquiring extra 40% of North Iraq oil field
-- Talks may not result in agreement, both sides caution
-- Kurdistan-focused Genel recently formed by merger of ex-BP CEO's investment vehicle and Turkey's Genel Enerji
(Rewrites throughout, adds context, detail.)
LONDON (Dow Jones)--London-listed oil and gas company Genel Energy PLC (GENL.LN) is in talks with Canada's Longford Energy Inc. (LFD.V) about potentially buying an additional 40% stake in an oil field in the Kurdistan region of Iraq, both firms said Wednesday.
Kurdistan-focused Genel, which is headed by former BP PLC (BP) chief executive Tony Hayward, already has a 20% working interest in the Chia Surkh oil field. The prospect is believed to contain some 305.7 million barrels of oil equivalent, Genel said.
Both Longford and Genel said they were responding to recent speculation about a deal, but cautioned that there was no certainty that a deal would result from their discussions.
Genel is the product of a recent merger by Vallares PLC, the investment vehicle headed by Hayward and financier Nathaniel Rothschild, and Turkey's Genel Enerji.
At 1258 GMT, Genel shares were up 7 pence, or 0.8%, at 800p.
-By Alexis Flynn, Dow Jones Newswires; +44 207842 9471, alexis.flynn@dowjones.com
(END) Dow Jones Newswires
21-12-11 1343GMT
