Bloomberg News

Genel Rises on ‘Significant’ Oil Find in Kurdistan: London Mover

April 10, 2013

Genel Energy Plc (GENL), an oil explorer run by former BP Plc (BP/) Chief Executive Officer Tony Hayward, rose to the highest in five months after making a significant oil discovery in Kurdistan.

The shares gained as much as 60.5 pence, or 7.6 percent, to 859.5 pence in London trading, the highest since November. The stock traded at 858.8 pence at 9:16 a.m.

Genel, the largest producer in Iraq’s Kurdish region, said the first of five Chia Surkh wells flowed 11,950 barrels of oil a day and 15 million cubic feet of gas, the company said today in a statement. It began drilling a second well this week.

“Whilst it’s early days, we’ve got a reservoir that will bring significant volumes” of oil, Hayward said in a phone interview. “We are only drilling big prospects.”

The field may hold more than 300 million barrels, Hayward said. Genel operates Chia Surkh and holds 60 percent of the license. The rest is held equally by Petoil Inc. and the Kurdish government, according to today’s statement.

Separately, Genel is in talks with as many as four Turkish utilities to sell gas from the company’s Miran field, Hayward said.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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