Malcy’s blogs Today27 May 2020 14:54
Genel Energy
DNO has stated that gross production at the Tawke licence in the KRI including the Tawke and Peshkabir fields, is expected to average 100,000 b/d in 2020 with a year end projected rate of 85,000 b/d absent any new wells. ‘The operator believes the reduction in oil production is reversible with a restart of drilling as and when the market recovers.’
Genel has been amongst the best performers in the sector lately, todays 128p being well more than double the 53.1p low mainly due to its low cost production, flexible and strong balance sheet and a management aware that all options, including dividends are open to them. Having visited the region last autumn it is clear that operations are growing, with significant upside even at lower oil prices, for these reasons I remain very comfortable with Genel at these levels.