* Taq Taq output fell to 58,600 bpd in third quarter
* 2016 revenue to hit lower end of $200 mln to $230 mlnguidance
* Full-year production expected at bottom of range (Adds KRG payment for August oil sales from Taq Taq)
By Karolin Schaps
LONDON, Oct 26 (Reuters) - Genel Energy, one of themain oil producers in Iraqi Kurdistan, warned on Wednesday thatfull-year revenue would be at the lower end of its targetbecause of weaker than expected production, sending its sharesto a seven-month low.
Production at Genel's main oil asset, the Taq Taq field thathas reserves of more than 170 million barrels, fell in the thirdquarter to 58,600 barrels per day (bpd), against 68,800 bpd inthe first half of the year, as output from existing wellsdeclined.
This forced Genel to warn that 2016 revenue would hit thelower end of its $200 million to $230 million target, which ithad already lowered in July from between $200 million and $275million.
It also said that 2016 production levels would come in atthe bottom of its target range of 53,000 bpd to 60,000 bpd.
Genel shares were down 11 percent at 83 pence by 0919 GMT,having earlier touched 76.25p, their lowest since March.
"We are disappointed to see the continued decline at Taq Taqand the delays in revenue from the KRG have not helped here,"said Daniel Slater, research director at Arden Partners, whorates the stock "neutral" with a price target of 93p.
Genel's receivables from the Kurdistan Regional Government(KRG), which pays domestic oil producers for exports, rose to$437 million at the end of September, compared with $412 millionat the end of June.
The KRG, which had been paying foreign producers in monthlyinstalments for oil exports since September 2015, fell behind onpayments this summer, raising concern among oil exporters.
"Despite the recent delay in payments, we remain optimisticthat they will continue, facilitating further investment acrossour KRI assets," said Genel Chief Executive Murat Oezguel.
Genel said later on Wednesday that it had received a netpayment of $12.2 million from the KRG for August oil sales fromTaq Taq.
Fellow Kurdistan producer Gulf Keystone also said onWednesday that it had received a gross payment of $15 millionfrom the authority for August crude sales from its Shaikanfield.
Genel plans to submit a plan next year to expand Taq Taq andsaid that it has opened a tender to procure a more powerful rigto drill more wells.
A spokesman said the extent of the field's expansion willdepend on oil export payments. (Editing by David Holmes and David Goodman)