Your account already exists. Please login first to continue managing your settings.
Genel Energy has agreed to acquire an additional 21% interest in the Bina Bawi exploration block in the Kurdistan region of Iraq from Hawler Energy Ltd. for US $240 million, Genel Energy announced.
The transaction is in addition to the company’s acquisition of an initial 23% interest in the Bina Bawi block, which completed Aug. 3.
The Bina Bawi exploration block is in the center of the Kurdistan region of Iraq and covers an area of 240 sq km (93 sq miles).
To date, two of the three exploration wells drilled on the block have encountered significant hydrocarbons. The most recent well, Bina Bawi-3, encountered a gross hydrocarbon column of more than 800 m (2,645 ft) in the Jurassic zone and two Jurassic reservoir intervals tested separately achieved an aggregate flow rate of more than 4,000 barrels a day of light, 44° to 47° API oil. A further gross hydrocarbon column, estimated at over 1,000 m (3,281 ft), in the Triassic zone of Bina Bawi-3, remains untested but confirmed the gas find made in the first well in 2007.
The overall results of Bina Bawi-3 continue to be reviewed, including the evaluation of deeper potential targets in the Triassic reservoirs. An extended well test will commence towards the end of the year. There are two further appraisal wells planned on the block this year. The Bina Bawi discovery is estimated to contain contingent resources of between 500 MMboe to 1 Bboe.
Upon completion of the acquisitions, Genel Energy will hold a 44% working interest in the PSC, OMV will hold a 36% working interest and the KRG will retain a 20% working interest which is carried by the contractors pro rata to their PSC entitlements.
The transaction is conditional on the receipt of approval from the Kurdistan regional government.
Commenting on the transaction, Tony Hayward, CEO of Genel, said, “This acquisition gives us a material interest in a third major oil and gas development (alongside Taq Taq and Tawke) and reinforces Genel’s leading position in the Kurdistan oil and gas province. It is consistent with our strategy of continuing to build our Kurdistan business through selective acquisitions and our ongoing exploration drilling program.”