Genel Nearly Halves Taq Taq Reserves Estimate, Expects $1B Impairments

Genel Energy announced Monday that it expects to record an impairment charge of approximately $1 billion, following revised assumptions on recoverable reserves at the Taq Taq field in the Kurdistan Region of Iraq.

Last month, Genel revealed that it would review its Taq Taq reservoir model following production declines during 2015. The results of this internal review found that proven and probable (2P) reserves from the field dropped to 357 million barrels of oil, from an initial estimate of 683 million barrels. As of December 31, 2015, the Taq Taq field had produced 184 million barrels gross. As a result, the remaining gross recoverable 2P reserves estimate as of December 31, 2015 is 172 million barrels of oil.

Genel currently anticipates that gross Taq Taq production will average around 80,000 barrels of oil per day in 2016. Gross Taq Taq production is currently estimated at 65-75,000 bopd and 50-70,000 bopd in 2017 and 2018 respectively.

The impairment, subject to audit, of approximately $1 billion to Genel’s Taq Taq field carrying value includes the revised assumptions on recoverable reserves announced today and the impact of lower oil prices.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Farstad Shipping Sells AHTS Lady Sandr... (Sep 27)
 -  Real Energy Prepares for Tamarama-1 We... (Sep 27)
 -  Trelleborg Appoints Unique Group as it... (Sep 27)
 -  Neptune Marine Services Bags Quadrant'... (Sep 27)
 -  Richard Dyson Appointed New CEO of IO ... (Sep 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Engineer II, Production
Expertise: Production Engineering
Location: Pittsburgh, PA
 
Treasury & Credit Management Analyst
Expertise: Accounting|Financial Analyst|Financial Audit
Location: KCMO, MO
 
State Income Tax Counsel/Tax Advisor
Expertise: Accounting|Financial Analyst
Location: San Ramon, CA
 
search for more jobs

Brent Crude Oil : $47.35/BBL 3.18%
Light Crude Oil : $45.93/BBL 3.25%
Natural Gas : $2.99/MMBtu 1.01%
Updated in last 24 hours