Genel Energy Regulatory News (GENL)

17 March 2014

Genel Energy plc

Operational Update

Genel Energy plc ("Genel") notes that DNO International ASA, as operator of the Tawke PSC (Genel 25% working interest) has today issued the following press release:

'DNO International ASA ("DNO International"), the Norwegian oil and gas company, announced today that it has initiated production from two newly completed horizontal wells in the Tawke field in the Kurdistan region of Iraq at a combined rate of 37,000 barrels per day.

In one of the new wells, Tawke-21, eight productive fracture corridors penetrated by a 980-meter horizontal section in the main Cretaceous reservoir interval flowed an average rate of 9,700 barrels per day each. In the other well, Tawke-22, located six kilometers away, seven productive fracture corridors penetrated by an 800-meter horizontal section flowed an average rate of 8,800 barrels per day each. Both wells are subject to wellbore and surface facilities limitations.

Two previous Tawke horizontal wells came on production in the second half of last year, two wells are currently drilling and three more are scheduled which, together with Tawke-21 and Tawke-22, will bring the total number of horizontal wells in the field to nine by year-end.'  

In addition, Cairn Energy, as operator of the JM-1 well (Genel 37.5% working interest) offshore Morocco, has today issued the following press release:

'The JM-1 well drilled to evaluate Upper Jurassic and Middle Jurassic objectives reached a total depth of 3,711m true vertical depth subsea and has been plugged and abandoned without testing.

In the Upper Jurassic section, the well has confirmed the presence of heavy oil over a gross interval of 110 metres as originally tested in the 1968 MO-2 well, some 2km from the JM-1 well. Reservoir quality and the oil gravity in the Upper Jurassic across the Cap Juby structure require further evaluation by Cairn and its joint venture partners (Office National Des Hydrocarbures et Des Mines "ONHYM" and Genel Energy). Work is ongoing to correlate the core and log data from JM-1 with other wells on Cap Juby to evaluate the extent of moveable hydrocarbons and how any further assessment should be conducted.

The Middle Jurassic objective was encountered with limited primary porosity and evaluation of well logs and side wall cores continues.'

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Notes to editors:

Genel Energy is an independent oil and gas exploration and production company listed on the main market of the London Stock Exchange (LSE: GENL). The company, with headquarters in London and additional offices in Ankara and Erbil, is the largest independent oil producer and the largest holder of reserves in the Kurdistan Region of Iraq and, through value-accretive acquisitions, is building a high impact exploration portfolio within Africa and the Middle East. For further information, please refer to www.genelenergy.com.