Genel Energy has boosted its operating stake to 100% in a block onshore Somaliland on which it is pursuing a farm-out process to attract investors for a planned exploration campaign.
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The Anglo-Turkish independent has now acquired the 25% equity share in block SL-10-B-13 previously held by East Africa Resource Group and it has increased its stake to 100%. Now, Genel acts as the operator with a 50% stake in Somaliland’s Odewayne license, contiguous to SL-10-B-13 and also onshore.
“As previously announced, a farm-out process relating to the block is now underway, with Stellar Energy Advisors appointed to run the process,” said in a press release from Genel Energy.
Last week, Genel Energy has presented Somaliland opportunities at the African Oil Week conference in Cape Town.
Interpretation of the 2018 2D seismic data together with basin analysis has identified multiple stacked prospects, with each of them estimated to have resources of c.200 MMbbls. A further program of surface oil seeps sampling and analysis reiterates the presence of a working petroleum system on the block.
A presentation on the Somaliland opportunity, given last week at the Africa Oil Week conference in Cape Town, is now available here https://saxafimedia.com/wp-content/uploads/2019/11/genel-somaliland-aow-presentation.pdf
On 22nd March 2018, major oil company, Genel Energy announced via its Chief Executive Murat Ozgul that Genel may start drilling in Somaliland in 2019.
“For the long term, I really like (our) Somaliland exploration assets. It’s giving me a sense of Kurdistan 15 years ago,” Ozgul said in a phone interview. “In 2019 we may be (starting) the drilling activities.”
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About Genel Energy’s Exploration Assets in Somaliland
Somaliland is a highly prospective, onshore exploration province, and Genel is targeting resources of over two billion barrels of oil.
In August 2012, Genel was awarded an exploration license for onshore blocks SL-10-B and SL-13 in Somaliland, with a 75% working interest in both. Genel extended its presence in November 2012 with the acquisition of a 50% participating interest in the Odewayne Production Sharing Agreement which covers blocks SL-6, SL-7, SL-10A.
Onshore Somaliland is a relatively unexplored region, with few exploration wells drilled. The total size of the blocks is approximately equivalent to the entire Kurdistan Region of Iraq.
Interpretation of the 2018 2D seismic data together with continued basin analysis has led to the maturation of prospects and leads inventory for the SL10B13 block (Genel 75% working interest and operator) which confirms the longstanding view that the block has significant hydrocarbon potential. A number of potentially high-impact exploration targets have been identified within play types directly analogous to the prolific Yemeni rift basins.
Once these prospects and leads have been quantified in terms of volumetric potential and associated geological risk the Company will initiate a farm-out campaign, commencing late Q3 2019. This remains consistent with the Company’s capital allocation approach, as long-term reserves replacement from legacy African exploration assets is targeted through the lowest possible capital outlay. On the Odewayne block, further seismic processing is continuing in order to complete the Company’s understanding of the prospectively of the block. In both cases, the minimum work commitments and associated expenditure for the current license periods has been met.
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