REG-Genel Energy PLC Genel Energy PLC: Somaliland farm-out

Genel EnergyAnnouncement

20/12/2021 07:05

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   Genel Energy PLC (GENL)
   Genel Energy PLC: Somaliland farm-out

   20-Dec-2021 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   20 December 2021

    

                                Genel Energy plc

                                        

                              Somaliland farm-out

                                        

   Genel Energy plc ('Genel' or 'the Company') is pleased to announce it  has
   signed a farm-out  agreement relating  to the  SL10B13 block,  Somaliland,
   with OPIC Somaliland  Corporation ('OSC'),  with all its  share of  future
   capital investment coming  from CPC Corporation,  Taiwan, the  state-owned
   enterprise of  Taiwan. Under  the agreement,  OSC receives  a 49%  working
   interest in  the block  for a  cash consideration  of 49%  of all  Genel's
   historic back costs,  plus a cash  premium. Genel previously  held a  100%
   working interest, and will continue as operator.

    

   Somaliland has significant underexplored potential, with geology analogous
   to Yemen. The SL10B13 block  is highly prospective, with multiple  stacked
   prospects with over 5 billion barrels of prospective resources  identified
   from the interpretation of  the 2D seismic  data acquisition completed  in
   January 2018.

    

   The field partners will now work together to plan exploration drilling  in
   this block,  with an  aim of  drilling a  well in  2023. It  is  currently
   estimated that a well can be drilled for a gross cost of c.$40 million.

    

   The prospective SL10B13 area is c.150 kilometres from the port at Berbera,
   offering a route to international markets.

    

   The agreement has been approved by the Government of Somaliland.

    

   Mike Adams, Technical Director of Genel, said:

   "Somaliland is a highly-prospective and largely unexplored region, with  a
   compelling technical case for the drilling of a well. Oil seeps confirm  a
   working petroleum system, and one prospect alone could target over half  a
   billion barrels across  multiple stacked reservoirs.  Being able to  drill
   this at a low-cost  to Genel, with  a clear route to  market in a  success
   case, fits with our strategy, and we look forward to working with OSC. 

    

   During the energy transition the hydrocarbons that should be developed are
   those that are low-cost, low-carbon,  and deliver a material and  tangible
   benefit to  local  people and  the  host government.  Somaliland  has  the
   potential to tick all of those boxes."

    

                                     -ends-

    

   For further information, please contact:

    

   Genel Energy
                                         +44 20 7659 5100
   Andrew Benbow, Head of Communications
                                          
   Vigo Consulting
                                         +44 20 7390 0230
   Patrick d'Ancona 

    

   Notes to editors:

   Genel Energy is  a socially responsible  oil producer listed  on the  main
   market   of    the    London    Stock   Exchange    (LSE:    GENL,    LEI:
   549300IVCJDWC3LR8F94). The  Company is  one of  the largest  London-listed
   independent hydrocarbon producers, with an asset portfolio that  positions
   us well for a future of fewer and better natural resources projects. Genel
   has low-cost and low-carbon production from the Sarta, Taq Taq, and  Tawke
   licences in the Kurdistan Region  of Iraq, providing financial  resilience
   that allows  investment  in growth  and  the  payment of  a  material  and
   sustainable dividend, even  at a low  oil price. Genel  also continues  to
   pursue further growth opportunities. For further information, please refer
   to  1 www.genelenergy.com.

    

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   ISIN:          JE00B55Q3P39, NO0010894330
   Category Code: MSCM
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  131097
   EQS News ID:   1259710


    
   End of Announcement EQS News Service

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