REG-Genel Energy PLC Genel Energy PLC: Trading and operations update Q1 2026

Genel EnergyAnnouncement

Today 07:30

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   Genel Energy PLC (GENL)
   Genel Energy PLC: Trading and operations update Q1 2026

   07-May-2026 / 07:24 GMT/BST

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   7 May 2026

    

    

    

    

                                Genel Energy plc

                     Trading and operations update Q1 2026

                                        

   Genel Energy plc ('Genel' or  'the Company') issues the following  trading
   and operations update relating to Q1  2026, ahead of the Company's  Annual
   General Meeting, which is being held today.

    

   KURDISTAN

     • We note  DNO’s  statement  today regarding  operations  on  the  Tawke
       licence:

    

   “In Kurdistan,  DNO  started the  year  with strong  production  from  its
   operated  Tawke license,  where it  also brought two  newly drilled  wells
   onstream early in the quarter. However, as a safety measure, the   Company
   elected to temporarily halt production  and drilling following the  launch
   of U.S.-Israeli air strikes against Iran on 28 February.

    

   Limited field operations  restarted on  9 April 2026,  with resumption  of
   workovers of  existing  wells and  relaunch  of the  previously  announced
   eight‑well drilling  campaign  in  preparation  for  stepped-up  rates  of
   production from the Tawke  and Peshkabir fields  when security and  market
   conditions improve.”

    

     • Gross average production up to the date of suspension was 79,900  bopd
       compared to December gross average production of 80,700 bopd
     • Gross production of 52,800 bopd up to 31 March (Q4 2025: 77,270 bopd)

          ◦ Working interest production of 13,200 bopd (Q4 2025: 19,320 bopd)
          ◦ Q1 2026 sales price average was $31/bbl (Q4 2025: $32/bbl)

    

   OMAN

     • Work is  ongoing on  analysing data  collected from  the initial  work
       programme and assessing its implications  for the location of  further
       activity on Block-54,  which includes  the acquisition  of 3D  seismic
       data and drilling two exploration wells over the next 2 years

    

   SOMALILAND

     • Work towards drilling of  the highly prospective Toosan-1  exploration
       well is ongoing

    

   FINANCIAL

     • Q1 2026  production  business free  cash  flow after  interest  of  $2
       million inflow although impacted by no proceeds being received for the
       month of suspended production in March (Q4 2025: $5 million inflow)
     • Q1 2026 free  cash flow  of $2 million  outflow (Q4  2025: $2  million
       outflow)
     • Balance sheet at 31 March 2026

          ◦ Cash of $222 million (YE2025: $224 million)
          ◦ Total debt of $92 million (YE2025: $92 million)
          ◦ Net cash of $131 million (YE2025: $134 million)

     • Balances with KRG

          ◦ $88 million (under KBT pricing and excluding interest) remains
            overdue from the KRG, although this has been reduced by about $40
            million of credit balances. We continue to work towards a plan
            for payment or settlement of amounts owed, and appropriate
            adjustment for price and interest
          ◦ Not included in the $40 million, Genel Energy Miran Bina Bawi
            Limited, a subsidiary of the group, owes the KRG around $26
            million relating to an arbitration costs award. The appeal
            against this award, held in April, was unsuccessful and there
            will be no further legal challenge

    

    

   OUTLOOK

     • At Tawke, the Company continues  to monitor developments closely  with
       the Operator to assess when full production can be resumed safely
     • Once restarted, Tawke free  cash flow at  production and price  levels
       before the suspension is expected to continue to cover  organisational
       costs
     • Incremental to  the  production  business, the  Company  continues  to
       expect to invest up to $20 million on its pre-production assets:

     • On Block 54 in Oman, in line with the 3-year initial exploration phase
       work plan,  which includes  3D seismic  acquisition and  drilling  two
       wells, as we  announced at  the time of  entering the  licence in  the
       first half of 2025
     • SL10B13 in  Somaliland,  as  we make  progress  towards  drilling  the
       Toosan-1 prospect in 2027

     • The Company continues to progress  towards building a business with  a
       strong balance sheet that delivers resilient, reliable, repeatable and
       diversified  cash  flows  that  support  a  dividend  programme.   The
       Company’s objectives  for  the  year  on the  path  to  building  that
       business include:

     • acquisition of new assets to diversify our reserves and resources  and
       cash generation
     • restart of exports of Tawke oil to access international pricing
     • pursuit of net amounts owed by the KRG
     • safe and efficient execution of activity on Block 54
     • further progress towards drilling Toosan-1 

    

    

    

                                     -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
   Sequence No.:  426663
   EQS News ID:   2322890


    
   End of Announcement EQS News Service

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