Genel Energy Regulatory News (GENL)

13 July 2015

Genel Energy plc

Trading and operations update

Genel Energy plc ("Genel" or "the Company") issues the following trading and operations update in advance of the Company's half-year 2015 results, which are scheduled for release on 6 August 2015. The information contained herein has not been audited and may be subject to further review.

Tony Hayward, Chairman of Genel, said:

"Production has grown rapidly in the first half of the year, increasing 41% year on year, with operational delivery driving record volumes above 100,000 bopd net to Genel on peak days. This increase has been integral in helping the Kurdistan Regional Government achieve its export goals, and the KRG is firmly committed to ensuring companies are paid in full for their production. Over 600,000 bopd of exports are now flowing to Ceyhan and, as distribution of the resulting revenues stabilises, the KRG is moving towards a financial position from which to make export payments to contractors.

Progress has also been made on our world-class Miran and Bina Bawi assets, the development of which provides a huge opportunity for both Genel and the Kurdistan Region of Iraq as a whole. We are now working on putting in place all of the components to progress this transformational project to its development and ultimate monetisation."

KURDISTAN REGION OF IRAQ ("KRI") OIL PRODUCTION

· Net working interest production for H1 2015 averaged 88,800 bopd, an increase of 41% on H1 2014. The Company's net working interest production in May and June was 95,600 bopd

· The Company's 2015 production guidance is maintained at 90-100,000 bopd

· Gross production by field and sales route for H1 2015 is as follows:

· In H2 2015, Genel will seek to optimise the mix between domestic and export sales from Taq Taq and Tawke, balancing the benefit of near-term cash flows with the requirement for both fields to contribute to exports via the KRI-Turkey pipeline

· At Taq Taq, surface processing capacity stands at 150,000 bopd following the successful commissioning of a temporary production facility in Q1 2015. Completion and commissioning of the second central processing facility, which has planned capacity of 90,000 bopd, is on track for year-end 2015

· At Tawke, wellhead, processing and pipeline capacity was successfully doubled to 200,000 bopd during H1 2015. Record daily production of c.180,000 bopd was delivered in late May

KRI PIPELINE CAPACITY AND EXPORTS

· The KRI oil pipeline from Khurmala to Fishkhabur now has capacity of 700,000 bopd, with plans to increase to 1 mmbopd in 2016 through installation of additional compression

· According to Kurdistan Regional Government ("KRG") data, in May and June 2015 574,400 bopd was exported from northern Iraq to Ceyhan, not taking into account pipeline downtime, representing 20% of total Iraqi crude exports in that period, and underscoring the strategic importance of the KRI pipeline

· Production from Taq Taq and Tawke is not constrained by pipeline capacity

KRI GAS OPERATIONS

· Progress has been made on all necessary components for the development of the Miran and Bina Bawi fields, which will deliver the gas supply to underpin the KRI-Turkey Gas Sales Agreement, signed in November 2013:

- In June 2015, Genel executed a detailed term sheet with the KRG for the upstream production sharing contract, which retains Genel's upstream project economics in line with the original framework announced in November 2014

- A company will be contracted by the KRG on a build, own, operate and transfer ("BOOT") basis for the gas treatment facilities. Genel is working with the KRG on the midstream development, currently leading discussions in relation to FEED, EPC tender, and financing options

- Genel will sign a gas supply agreement with the KRG for the sale of raw gas from Miran and Bina Bawi

· The sale and purchase agreement for OMV's 36% operated stake in the Bina Bawi field is proceeding in parallel with the progress on the wider gas project, and is expected to complete on the signing of final contracts

FINANCIALS

· Revenue for H1 2015 is estimated at $200 million

· In H1 2015, crude oil realisations averaged c.$42/bbl, a 42% decrease on H1 2014 due to the impact of lower global oil prices

- Pipeline export realisations for Taq Taq and Tawke are estimated at $45/bbl and $40/bbl respectively

- Taq Taq domestic market sales (including Bazian refinery) realised c.$44/bbl

- Tawke domestic market sales realised $36-38/bbl

· 2015 revenue guidance is unchanged at $350-400 million on a Brent oil price of $50/bbl

· In its H1 2015 accounts, Genel expects to record an exploration expense of c.$10 million in respect of its Africa and KRI operations

CAPEX AND BALANCE SHEET

· Capital expenditure in H1 2015 is estimated at $90 million, the majority of which was spent on the Taq Taq and Tawke development programmes

· 2015 capex guidance is reduced to $150-200 million from $200-250 million, due to the exiting of exploration commitments and capital discipline on our KRI operations. Overall activity levels and associated expenditure during 2015 will continue to depend on oil prices and the evolution of payments for KRI exports

· Successful issue of $230 million senior unsecured bonds in March 2015

· Cash balances at 30 June 2015 stood at c.$470 million, with net debt of c.$220 million. Cash balances reflect a net trade receivable with the Kurdistan Regional Government of c.$378 million at the end of the period (from c.$230 million at end 2014), in addition to a working capital draw of c.$60 million in respect of 2014 Africa exploration activity

-ends-

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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 and resources in the Kurdistan Region of Iraq and, through its Miran and Bina Bawi gas fields, is set to be a cornerstone provider of gas to Turkey under the KRI-Turkey Gas Sales Agreement. Genel also continues to pursue further growth opportunities within the Middle East and Africa. For further information, please refer to www.genelenergy.com.

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements.