Continued drillbit success enabled Genel Energy (GENL) to boost its contingent resource base by 50 per cent by the half-year stage, while tighter ties between the Turkish government and the Kurdistan regional government (KRG) presents huge export opportunities for the frontier oil & gas explorer.
January's export agreement with the KRG enabled Genel to monetise more of its production outside of Kurdistan. That helped net profits soar to $109m (£71.2m) from last year's $22.3m, while operating cash flow grew by 120 per cent to $181m. Genel expects a significant step-up in output over the next 18 months, too. The Taq Taq and Tawke production wells averaged 41,500 barrels of oil per day (bopd) on a working interest basis during the first half (39,000 bopd in 2012), with full-year output reiterated at 45,000-55,000 bopd - generating revenues of $300m-$400m. Completion of an export pipeline into Turkey this year should also enable Genel to boost output to 140,000 bopd by end-2014.