Genel Energy makes 'significant' oil discovery in Iraq

Oil and gas company Genel has announced a 'significant' oil discovery at the first of five exploration wells it plans to drill this year in the Kurdistan Region of Iraq.

The company said the Chia Surkh 10 well was drilled to a depth of 1,696 metres in the Oligo-Miocene section, and, in tests extending over several days, flowed at up to 11,950 barrels of oil a day and 15m cubic feet of gas.

A second drill-stem test is being planned for the Miocene section, after which the well will be suspended as a future producer.

The group has begun a second well, Chia Surkh 11, to appraise the discovery.

Chief Executive Tony Hayward said: "We intend to carry out a rapid appraisal and development programme and expect to have an early production scheme operating in the first half of 2014. Over the same period we will be evaluating and drilling a number of other prospects we have in the Chia Surkh licence.

"We are delighted at this level of success in what is the first of the five high-impact exploration wells we plan in the Kurdistan Region of Iraq during 2013. To have made a discovery of such potential materiality at this early stage is highly encouraging."

Chia Surkh 10 is the first exploration well to be drilled on the Chia Surkh acreage since 1954. The 985 square kilometre licence is operated and held 60% by Genel Energy. The remaining 40% is held equally between Petoil and the Kurdistan regional government.

NR