TIDMGENL
RNS Number : 3288C
Genel Energy PLC
19 January 2018
19 January 2018
Genel Energy plc
Bina Bawi and Miran West gas resource update
Genel Energy ('Genel' or 'the Company') is pleased to announce
that RPS Energy Consultants Ltd. ('RPS'), as part of its work on
the updated competent person's reports ('CPRs') for the Bina Bawi
and Miran West fields (Genel 100% and operator), has finalised its
evaluation of the contingent gas resources at both assets:
- The RPS evaluation confirms a significant upgrade to the
combined 2C gross (100% working interest ('WI')) raw gas resource
estimate for the Bina Bawi and Miran West fields:
o The RPS assessment of the combined gross 2C raw gas resource
for both fields now stands at 14,792 Bscf, a figure which excludes
associated condensate volumes attributable to the upstream
partners
o The RPS assessment of the combined gross 2C condensate volumes
potentially recovered from raw gas production at both fields totals
137 MMstb
o As at end-2016 Genel's reported 2C resources included net raw
gas resources from Miran and Bina Bawi totalling 1,421 MMboe(1) ,
which related to Genel's respective 80% and 75% interests in the
Bina Bawi and Miran PSCs at that time
o In February 2017 the Company increased its interest in both
PSCs to 100%, resulting in a combined pro-forma end-2016 Genel 2C
resource of 1,815 MMboe (10,530 Bscf(2) )
o The 2018 RPS estimates of combined 2C resources from both
fields have increased c.40% compared to the pro-forma end-2016 2C
resource
- The revised Bina Bawi 1C gross raw gas resource estimate is
more than 50% higher than the gas volume agreed to for the field
under the Gas Lifting Agreement ('GLA'). The revised Miran West 1C
gross raw gas resource estimate is in line with the volume agreed
to for the field in the GLA
A comparison of the revised 2C gross contingent resource numbers
for both fields and the Company's end-2016 number, which was based
on the 2013 RPS reports plus the addition of the Company's
assessment of non-hydrocarbon gases, is summarised in the following
table. Further detail is provided in an appendix to this
announcement.
Gross (100% WI) 2C
Contingent Resources
Raw gas (Bscf)
======= ============================
Previous Revised change
------- --------- -------- -------
Bina
Bawi 6,472 8,230 27%
------- --------- -------- -------
Miran
West 3,688 6,562 78%
RPS's updated analysis of the raw gas resources on both fields
has benefitted from updated reservoir simulation modelling combined
with analogue analysis jointly created and developed by the Company
and Baker Hughes since the original reports were produced. As a
consequence, the recovery factors for the gas reservoirs in both
fields have, in most resource categories, been increased to reflect
a better understanding of potential reservoir performance. Further
appraisal activity, which is currently under consideration, could
help refine reservoir performance and these recovery factor
estimates.
Volumes agreed under the GLAs total 2,800 Bscf from Bina Bawi,
and 2,000 Bscf from Miran West over a 12 year period, consisting of
a two year build-up period and 10 year plateau period. The revised
2C and 3C raw gas resources for both fields significantly exceed
these volumes. Following the completion of the upstream field
development plans ('FDPs'), sufficient progress on the midstream
facilities and sales gas export route, and subsequent final
investment decision, the Company expects that a percentage of the
contingent raw gas resources will be converted to reserves,
dependent on the volumes set to be produced under the FDPs.
The upstream FDPs for the gas and oil fields in the Bina Bawi
and Miran PSCs, which are being carried out by Baker Hughes, are
expected to be completed shortly.
RPS is continuing its evaluation of the oil bearing reservoirs
at both fields, the results of which will be announced once
finalised.
Appendix
Summary of Contingent Resources - Development unclarified (Gross
100% working interest basis) attributable to the Bina Bawi and
Miran West fields as of 31 December 2017
Gross (100% Gross (100%
WI) Contingent WI) Contingent
Resources Resources
====== ===================== ====== =====================
BINA Raw gas Condensate MIRAN Raw gas Condensate
BAWI (Bscf) (MMstb) WEST (Bscf) (MMstb)
------ -------- ----------- ------ -------- -----------
1C 4,651 34 1C 1,967 18
------ -------- ----------- ------ -------- -----------
2C 8,230 62 2C 6,562 75
------ -------- ----------- ------ -------- -----------
3C 13,036 99 3C 18,429 233
(1) Genel figure based on the 2013 RPS reports plus the addition
of the Company's assessment of non-hydrocarbon gases
(2) Based on a conversion factor of 5.8 MMscf/bbl
-ends-
For further information, please contact:
Genel Energy
Phil Corbett, Head of Investor
Relations
Andrew Benbow, Head of Public
Relations +44 20 7659 5100
Vigo Communications
Patrick d'Ancona +44 20 7830 9700
This announcement includes inside information.
Notes to editors:
Genel Energy is an independent oil and gas exploration and
production company listed on the main market of the London Stock
Exchange (LSE: GENL, LEI: 549300IVCJDWC3LR8F94). The Company, with
headquarters in London and offices in Ankara and Erbil, is one of
the largest London-listed independent oil producers, and is the
largest holder of reserves and resources in the Kurdistan Region of
Iraq. Through its Bina Bawi and Miran PSCs, the Company is
positioned to be a cornerstone provider of KRI gas to Turkey under
the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue
further growth opportunities within the Middle East and Africa. For
further information, please refer to www.genelenergy.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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