Genel: Taq Taq Field Hits 109,000 Barrels per Day

Kurdistan-focused Genel Energy announced Friday that production from its onshore Taq Taq field hit a high Jan. 4 of 109,000 barrels of oil per day. The company added that during the first two weeks of January production from Taq Taq has averaged 89,000 bopd.

Genel, reporting an operational update, said that it expects to complete its current exploration program in the Kurdistan region of Iraq during the first half of 2013. This program comprises three high-impact wells that are targeting a gross un-risked resource of more than 750 million barrels of oil equivalent. Tawke Deep and Chia Surkh 10 are currently drilling on schedule with results expected by the end of the first quarter. A third well (Taq Taq Deep) will spud during the next couple of months.

Capital expenditure for 2013 is expected to be between $400 million and $500 million. The firm spent approximately $230 million in 2012, which was fully funded by cash generated from current operations in Kurdistan.

Genel said that its average net working interest production for 2012 was 44,500 bopd, compared with 42,000 bopd in 2011. The company said that it began reducing exports of oil in mid-November, switching sales of production back into Kurdistan's domestic market, in response to the uncertainty regarding the receipt of the second payment for historic exports owed from the Federal Government of Iraq.

Meanwhile, Genel started exporting crude oil from Taq Taq into Turkey by truck earlier this month.

Genel Chief Executive Tony Hayward commented in the statement:

"2012 saw a strong production performance and a materially expanded exploration portfolio which will provide us with significant opportunities in 2013, both in the Kurdistan Region of Iraq and Africa. We expect revenues to be ahead of previous guidance and all development and exploration activities in Kurdistan to be funded from cash flow generated locally in line with our stated strategy. We are today exporting oil to Turkey in accordance with the authority granted to us by the Kurdistan Regional Government and as the largest independent operator in Kurdistan, are well placed to take advantage of regional opportunities for a broader export market as the political situation continues to develop."