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.
Be the first to know – Follow us on @Saxafi
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 licence, 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.”
About Africa Oil Week
For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.
It’s where they come to set out the future direction of the continent’s upstream oil and gas sector, secure major deals and lucrative new partnerships.
1,500 senior experts make up the attendee list including ministers, CEOs and senior representatives from NOCs, IOCs and independent oil companies, GEOs, oilfield services and business service providers. The entire value chain is represented, making it the premium deal-making hub for the industry.
Over 200 world-class speakers make up a cutting-edge agenda which every year tackles the industry’s biggest challenges. The discussion topics are shaped by the oil and gas leaders that make up our expert advisory board.
About Genel Energy’s Exploration Assets in Somaliland
In August 2012, Genel was awarded an exploration licence 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 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 licence periods has been met.