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Genel Energy Plc GENL Somaliland Farm In

  Genel Energy Plc (GENL) - Somaliland Farm In

RNS Number : 8345Q
Genel Energy PLC
12 November 2012




12 November 2012

                                      

                               Genel Energy plc

                      ("Genel Energy" or the "Company")

                                      

    Genel to farm in to Odewayne Block, Somaliland and assume operatorship

                                      

Genel Energy announces that it has agreed to farm in for 50 per cent of  Jacka 
Resources Limited's ("Jacka") licence interests to explore for and produce oil
and gas in the Odewayne Block, Somaliland ("Odewayne") (the "Transaction"). As
part of the Transaction, Genel Energy will assume operatorship.



Under the  Transaction, Genel  Energy  will acquire  50  per cent  of  Jacka's 
participating interest in the  Odewayne Production Sharing Agreement  ("PSA"). 
Jacka will  retain a  30  per cent  interest and  the  remaining 20  per  cent 
interest is held by Petrosoma. The consideration comprises an initial  payment 
of $0.67 million to  Jacka in recognition  of past costs plus  a 100 per  cent 
carry of Jacka and Petrosoma for the exploration work programme required under
phases III and IV of the PSA.  This programme includes a minimum of 1,500  kms 
2D seismic and the  drilling of one exploration  well. These will be  funded 
from the Company's existing cash resources. 

The Odewayne Block covers block SL6 and  part of blocks SL7 and SL10,  onshore 
Somaliland. It  comprises an  area  of 22,000  square kilometres  enclosing  a 
Jurassic/Cretaceous  rift  basin.   An  active  petroleum   system  has   been 
demonstrated by numerous oil  seeps on the block  confirming that the area  is 
underpinned by a working hydrocarbon system, which is believed to be analogous
to the  nearby  producing basins  in  Yemen. A  recently  commenced  airborne 
gravity and magnetic  survey will be  used to design  an extensive 2D  seismic 
acquisition programme to be initiated in Q1 2013.

The Transaction is conditional on the receipt of approval from the  Government 
of Somaliland.



Commenting on  the transaction,  Dr.  John Hurst  Chief Operating  Officer  of 
Africa for Genel, said:



"We are  delighted to  have farmed  in to  the Odewayne  Block,  substantially 
increasing our acreage position in  Somaliland. This block, together with  our 
SL10/13B acreage,  means  we have  built  a  strong position  in  an  exciting 
frontier exploration  area. Such  frontier exploration  opportunities, with  a 
very realistic  possibility  of finding  large  volumes of  hydrocarbons,  are 
increasingly rare. We  look forward  to commencing  our exploration  programme 
which will lead to spudding of our first well by mid-2014."



                                    -ends-



For further information, please contact:

                 

Genel Energy plc  +44 20 7659 5100

Julian Metherell

Natalie Fortescue


M: Communications +44 20 7920 2340

Patrick d'Ancona

Andrew Benbow



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  the 
Middle  East  and   Africa.  For   further  information,   please  refer   to 
www.genelenergy.com.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCLFFIFLDLLLIF -0- Nov/12/2012 07:00 GMT
 
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