Genel Completes Purchase of 49% of Miran Block

Genel Energy confirmed Wednesday that it has completed its acquisition of the remaining 49 percent participating interest in the Miran exploration block in the Kurdistan Region of Iraq. The firm now holds 100 percent of the participating interest in the block (and 75 percent of the working interest) and has become the sole operator, following its deal with Heritage Oil.

In a separate statement, Heritage Oil confirmed the disposal – which was carried out in order to repay a $294 million loan made by Genel to Heritage in August 2012.

Heritage CEO Tony Buckingham commented in the statement:

"We are delighted to have received final approval for the disposal which means we have not only monetized the asset at an attractive valuation but have also used the proceeds to fund a significant part of our entry into a new region through the recent acquisition of a major interest in OML 30, Nigeria. This brings the total disposal proceeds generated by Heritage from asset sales to over $2 billion."

Genel describes the Miran block as a "world-class gas field". It contains two large contiguous structures, Miran West and Miran East, where results from wells drilled to date have confirmed the existence of two hydrocarbon systems with oil in the shallower Upper Cretaceous section and gas (and condensate) within the deeper Lower Cretaceous and Jurassic formations.




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