REG-Genel Energy PLC Genel Energy PLC: Trading and operations update Q1 2025

Genel EnergyAnnouncement

Thu 07:02

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   Genel Energy PLC (GENL)
   Genel Energy PLC: Trading and operations update Q1 2025

   08-May-2025 / 07:00 GMT/BST

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   8 May 2025

    

    

    

    

                                Genel Energy plc

                     Trading and operations update Q1 2025

                                        

   Genel Energy plc ('Genel' or  'the Company') issues the following  trading
   and operations update relating to Q1  2025, ahead of the Company's  Annual
   General Meeting, which is being held today.

    

   Paul Weir, Chief Executive of Genel, said:

   “In line with expectations, the Tawke PSC continues to deliver consistent,
   reliable production  and  generate  significant  cash  flow  even  at  the
   discounted domestic sales  prices. The  operational performance  delivered
   from the Tawke and  Peshkabir fields, together  with the significant  cost
   efficiency, continues to set these fields apart from others in the region.

    

   Our entry into  Block 54 in  Oman is  expected to complete  in the  coming
   weeks, with first  substantial work programme  activity commencing  around
   the end of the year.

    

   We continue  to work  towards diversifying  our production,  both  through
   expansion of our footprint in Oman as  well as the purchase of new  assets
   in other preferred jurisdictions.  We addressed the  maturity of our  bond
   debt by calling the old bond and issuing a new $100 million bond,  thereby
   increasing available cash and  putting in place  a capital structure  that
   can  provide  funding  towards  delivery  on  our  strategic   objectives,
   regardless  of  whatever  uncertainties  may  face  the  business  at  the
   macro-economic level.”

    

   KURDISTAN

     • Gross production of 82,081 bopd in Q1 2025 (Q4 2024: 74,140 bopd) from
       the Tawke  licence  where  performance  continues  to  be  robust  and
       domestic sales demand reliable

          ◦ Working interest production of 20,520 bopd (Q4 2024: 18,540 bopd)

     • Q1 2025  sales price  has been  consistent with  the previous  quarter
       around $35/bbl
     • Exit from the Sarta  and Qara Dagh licences  has now been approved  by
       the KRG, in the form of relinquishment and termination agreements with
       minimal residual potential liabilities

    

   OMAN

     • As previously announced, we are delighted to have entered Oman through
       the award of an interest in Block 54
     • Royal Decree is expected in the  coming weeks and we are working  with
       OQEP, the operator,  on planned activity  for the second  half of  the
       year

    

   SOMALILAND

     • On SL10B13  in  Somaliland,  we continue  to  work  towards  achieving
       conditions that support  drilling of the  highly prospective  Toosan-1
       exploration well

    

   MOROCCO

     • We have  informed ONHYM  that  we will  not  be extending  beyond  the
       Initial Period of the Lagzira  licence to the First Extension  Period,
       and consequently will be abandoning the licence in June 2025

    

   FINANCIAL

     • Net cash of $135 million at 31 March 2025 (YE2024: $131 million)
     • Q1 2025 free cash flow  of $5 million (Q4  2024: $1 million free  cash
       outflow)

          ◦ Ahead of guidance due to higher production and some timing
            differences on spend
          ◦ Tawke free cash flow expected to cover organisational costs this
            year
          ◦ No spend to date on Oman

     • Cash of $201 million at 31 March 2025 (YE2024: $196 million)

          ◦ In April the Company called $66 million of bonds maturing October
            2025 and issued a new $100 million bond maturing April 2030

     • Balances with KRG

          ◦ Both receivable and payables have reduced as a result of the exit
            from Sarta and Qara Dagh

               ▪ Gross reported nominal receivables of $99 million, reduced
                 from $107 million at YE2024
               ▪ Payables of around $40 million, reduced from around $50m
                 million at YE2024
               ▪ The arbitration costs award  made by the Tribunal for
                 amounts owed to the KRG by Genel Energy Miran Bina Bawi
                 Limited (“GEMBBL”) is circa $27 million, reduced from the
                 circa $36 million claimed by the KRG
               ▪ GEMBBL has appealed this costs award to the High Court on
                 the grounds that, because the KRG did not provide any
                 breakdown of the amounts claimed by reference to any items
                 of work, the Arbitration Tribunal was unable to assess the
                 reasonableness and proportionality of the recoverable costs
                 and consequently did not have jurisdiction to make an award

    

   OUTLOOK

     • Tawke free cash flow at current  production and prices is expected  to
       continue to  cover organisational  costs, with  net cash  at  year-end
       expected to be about the same as the start of the year
     • Following our  entry into  Oman,  there will  be some  direct  capital
       investment this year as we work towards testing previously  discovered
       resource
     • Talks between the Kurdistan Regional Government and Federal Government
       of Iraq and Ministry  of Oil regarding  the Iraq-Türkiye Pipeline  are
       ongoing, but no material  progress has been made  since March and  the
       timing of the resumption of exports remains uncertain

    

    

    

    

                                     -ends-

                                        

   For further information, please contact:

    

   Genel Energy: Luke Clements, CFO   +44 20 7659 5100
   Vigo Consulting: Patrick d’Ancona  +44 20 7390 0230

    

   Genel Energy is  a socially responsible  oil producer listed  on the  main
   market   of    the    London    Stock   Exchange    (LSE:    GENL,    LEI:
   549300IVCJDWC3LR8F94).  For   further   information,   please   refer   to
    1 www.genelenergy.com

    

    

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   ISIN:           JE00B55Q3P39, NO0010894330
   Category Code:  TST
   TIDM:           GENL
   LEI Code:       549300IVCJDWC3LR8F94
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   386892
   EQS News ID:    2132558


    
   End of Announcement EQS News Service

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