Genel Energy plc ('Genel' or 'the Company') issues the following trading and operations update in respect of the third quarter and first nine months of 2022.
Paul Weir, Chief Executive of Genel, said:
'I am pleased that we remain on track to generate around $250 million of free cash flow this year, building towards a significant cash balance of over $500 million by the end of the year. We are focused on putting this cash to work to purchase new assets, grow the business, and increase shareholder returns. It is business as usual on an operational level in Kurdistan, while we continue to work with the KRG on the challenges that the sector faces. Our existing predictable production business outlook supports our established dividend of $50 million, and our committed dividend programme has paid $178 million of cash to shareholders since its inception in 2019.'
FINANCIAL
Margin of $36/bbl in the first three quarters of 2022 (2021: $24/bbl), with Brent averaging $105/bbl (2021: $71/bbl)
Capital expenditure of $109 million, of which $55 million was spent at Tawke, and $38 million at Sarta
Free cash flow of $175 million up to 30 September 2022
This does not include proceeds for June production, totalling $59 million, received in October
In relation to the nominal $120 million for unpaid sales made from November 2019 to February
2020, and the suspended override from March 2020 to December 2020 that would have earned
$38 million, since January 2021:
Cash of $117 million has been received
Offsets of $9 million have been made
Cash of $447 million at 30 September 2022 ($412 million at 30 June 2022)
Net cash under IFRS of $181 million at 30 September 2022 ($141 million at 30 June 2022)
Total debt of $274 million at 30 September 2022 ($280 million at 30 June 2022), following the opportunistic acquisition of $6 million of bonds at a price that provided an attractive level of return
PRODUCTION BUSINESS
Net production of 30,350 bopd in the first nine months of 2022, and 30,200 bopd in Q3, in line with guidance
Tawke PSC (25% working interest)
Gross production averaged 107,300 bopd in the first nine months of 2022, and 108,500 bopd in Q3
Sarta (30% working interest and operator)
Gross production averaged 4,900 bopd in the first nine months of 2022, and 3,960 bopd in Q3
Production continues from existing well stock as we continue to work on the field to seek to optimise production from various zones, ranging from the pilot production tests of the newly discovered Butmah and Najmah resources through to the initial stacked Mus & Adaiyah reservoir intervals Rigless testing at Sarta-6 is now underway, with the initial appraisal programme expected to be complete by the end of year
Taq Taq PSC (44% working interest and joint operator)
Gross production averaged 4,660 bopd in the first nine months of 2022, and 4,280 bopd in Q3
Taq Taq continues to perform in line with expectations, with positive results from the recent well intervention programme
Drilling is set to resume with an infill production well expected to spud around the end of 2022
Contact:
Genel Energy
Andrew Benbow
Head of Communications
T: +44 20 7659 5100
Vigo Consulting
Patrick d'Ancona
T: +44 20 7390 0230
This announcement includes inside information.
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 progressive dividend. Genel also continues to pursue further growth opportunities. For further information, please refer to www.genelenergy.com
GENEL ENERGY PLC 
