Monday, Jan 16, 2012
LONDON (Dow Jones)--Genel Energy PLC (GENL.LN), said Monday that it has become the government's sole Contractor in the Chia Surkh exploration block in Iraq, adding that it is to increase its interest in the block to 80% from 20% and will become licence Operator.
MAIN FACTS:
-Chia Surkh covers an area of 984 square kilometers in the southern part of the Kurdistan Region and has prospective resources estimated at more than 300 million barrels of oil equivalent.
-Genel Energy is paying a total of $68 million for the 40 per cent interest currently held by Forbes & Manhattan Kurdistan Inc, a subsidiary of Longford Energy Inc. This consists of $42 million to be paid directly to F&M and $26 million to be paid to the Kurdistan Regional Government in respect of F&M's outstanding obligations.
-Genel is also paying $26 million to Petoil Petroleum for their 20% interest.
-Both transactions will be funded from Genel's existing cash reserves of some $1.9 billion.
-The Government will retain its existing 20 per cent carried interest.
-The acquisition will add some 183.4 mmboe of unrisked prospective resources to the Genel Energy portfolio based on an estimate by independent U.S. assessors McDaniel & Associates that Chia Surkh contained unrisked mean prospective resources of 305.7 mmboe, as of 30 June 2011.
-Genel Energy PLC is an independent Anglo-Turkish oil and gas company created from the merger of Vallares PLC and Genel Energy International Ltd.
-Genel Energy shares closed Friday at 755 pence, valuing the company at GBP1.41 billion.
-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@dowjones.com
(END) Dow Jones Newswires
16-01-12 0711GMT
