Genel Energy agrees to farm-in on Sidi Moussa

Genel Energy, the oil and gas giant led by former-BP frontman Tony Hayward, on Thursday agreed to farm in for 60 per cent of the licence interests to explore and produce oil and gas in the Sidi Moussa Offshore Block, offshore Morocco.

Under the agreement, Genel will acquire the stake in return for an initial payment of $1.3m relating to past costs, as well as a further payment for the drilling of the commitment well of up to $50m.

75% of Sidi Moussa is currently held by Serica Sidi Moussa, San Leon Offshore Morocco, and Longreach Oil and Gas Ventures. They will each transfer part of their interest to Genel to give the firm its 60% holding. The remaining 25% is held by the Office National des Hydrocarbures et de Mines, and costs relating to this interest are covered in full during the exploration and appraisal stage.

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Genel wins formal approval for interest in Miran Block

Genel also announced that after receiving formal approval for the acquisition of an additional 26% interest in the Miran Block in the Kurdistan Region of Iraq, the sale has closed. As a result it now holds a 51% interest in the block.

Genel Energy and Heritage Energy Middle East (HEME), a subsidiary of Heritage Oil, have agreed to establish a new joint venture company for the purposes of managing the Miran Block, to be held between them pro rata to their working interests in the field. HEME will transfer the operatorship of the Miran Block to the new vehicle within 60 days.

The share price rose 2.45% to 711.50p by 12:56.

NR