Middle East and Africa-focused independent Genel Energy reported Tuesday that its 2014 production and revenue guidance remains unchanged at between 60,000 and 70,000 barrels of oil equivalent per day and between $500 million and $600 million.
Genel said that net working interest production for the first quarter averaged 50,000 barrels of oil per day (bopd), representing an increase of 35 percent on the first quarter of 2013. The firm's Taq Taq and Tawke fields in Iraqi Kurdistan averaged 81,000 bopd and 57,000 bopd respectively.
Genel said that production and revenues are expected to increase over the course of 2014 as Kurdistan's oil pipeline system comes into operation.
At the Taq Taq field the construction of a second central processing facility is progressing and is on track for completion around the end of this year, Genel said. The drilling of the first deviated and horizontal wells on the field will follow completion of the Taq Taq Deep exploration well – where a testing program on Jurassic and Triassic reservoirs is now in progress.
Genel added that, during the first quarter of the year, two additional horizontal development wells were completed at the Tawke field and brought on stream at a combined rate of 37,000 bopd. The operator of the field, DNO International, has outlined plans to increase field processing capacity from 100,000 bopd to 200,000 bopd by the end of 2014.
Meanwhile, first gas production from the Summail field development is expected shortly.
Analysts at London-based investment bank First Energy commented that a possible downwards revision to gas realized prices sold to Turkey could significantly affect economics, while it does not expect resolution on pipeline exports anytime before or in the immediate aftermath of Iraqi elections.
As far as Genel's exploration activities are concerned, the company confirmed that it has agreed to acquire 15-percent stakes in Block 38 and Block 39 offshore Angola. These deals provide Genel with a position in exploration licenses "that hold multi-billion barrel prospectivity and represent an attractive high-impact, near-term exploration opportunity", it said.
The Stena Carron (DW drillship) vessel has been contracted for a drilling program offshore Angola. This is scheduled to begin in mid-2014.
Offshore Morocco, work in ongoing to evaluate the extent of movable hydrocarbons after the Cap Juby well confirmed the presence of heavy oil over a gross interval of 360 feet in an upper-Jurassic carbonate reservoir.
Meanwhile, the exploration well on the Hagar Qim prospect on the Area 4 license offshore Malta is scheduled to spud in May.
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