Genel Takes Over Miran Block in Kurdistan, Expands in Somaliland

[Siciid1986]

Genel Energy Plc (GENL), the Iraq-focused oil company run by former BP Plc (BP/) Chief Executive Officer Tony Hayward, increased its interests in fields in Kurdistan and Somaliland.

 

Genel will take an extra 49 percent of Miran, leaving it with 100 percent of the field that holds 10.5 trillion cubic feet of gas, as repayment for a $294 million loan to Heritage Oil Plc (HOIL) issued in August, the company said in a statement in London. Separately, it said it will buy a stake in a Somaliland block.

 

Hayward is bolstering production in Kurdistan as the region can now sell its fuel for export following an agreement on revenue with the central government in Baghdad. He’s also expanding outside of Kurdistan with a cash pile of about $1 billion to spend on acquisitions.

 

The Odewayne Block covers block SL6 and part of blocks SL7 and SL10, onshore Somaliland. It comprises an area of 22,000 square kilometres enclosing a Jurassic/Cretaceous rift basin. An active petroleum system has been demonstrated by numerous oil seeps on the block confirming that the area is underpinned by a working hydrocarbon system, which is believed to be analogous to the nearby producing basins in Yemen. A recently commenced airborne gravity and magnetic survey will be used to design an extensive 2D seismic acquisition programme to be initiated in Q1 2013.

 

The Transaction is conditional on the receipt of approval from the Government of Somaliland.

 

Commenting on the transaction, Dr. John Hurst Chief Operating Officer of Africa for Genel, said:

 

“We are delighted to have farmed in to the Odewayne Block, substantially increasing our acreage position in Somaliland. This block, together with our SL10/13B acreage, means we have built a strong position in an exciting frontier exploration area. Such frontier exploration opportunities, with a very realistic possibility of finding large volumes of hydrocarbons, are increasingly rare. We look forward to commencing our exploration programme which will lead to spudding of our first well by mid-2014.”