Genel Energy notes DNO ASA announcement

Genel Energy notes the announcement from DNO ASA, operator of the Tawke field, that three new production wells have been completed at the Tawke field in the Kurdistan Region of Iraq as part of a stepped up drilling program kicked off in July 2016.

The Tawke-31 well, targeting the main Cretaceous reservoir will be brought on production following an acid stimulation program.

Two additional wells targeting the shallow Jeribe reservoir, Tawke-33 and Tawke-34, are also being readied for production. A further Jeribe well, Tawke-37, will be spudded next week.

The four wells are expected to cost less than $20 million in total and add about 10 percent to field output capacity.

Earlier this month the Peshkabir-2 well was spudded, aiming to appraise the Jurassic reservoir and explore the Cretaceous horizon on a previous discovery to the west of the main Tawke field.

This well marks the completion of the current drilling program at the Tawke license which was initiated on the back of monthly export payments from the Kurdistan Regional Government.

Plans to engage a third drilling rig were dropped in September though the company expects to re-start investments to boost production to a targeted level of 135,000 bopd following the resumption of regular and predictable payments.

Tawke production during the third quarter averaged 109,159 bopd, of which 108,759 bopd was delivered for export through Turkey.

At 9:30am: (LON:GENL) Genel Energy PLC share price was +3.25p at 106.5p

Story provided by