Genel Energy production returns at Kurdistan fields

(Sharecast News) - Genel Energy said on Wednesday that production from its key Tawke and Peshkabir fields in the Kurdistan Region of Iraq had returned to around 80,000 barrels of oil per day, as it reported continued free cash flow generation in the third quarter despite discounted domestic sales prices. The company reported average domestic sales prices of $31 per barrel during the quarter, compared with $33 a barrel year-to-date, and said it expected to receive around $3m in insurance proceeds by the end of the year for lost output caused by drone strikes earlier in 2025.

Working interest production up to 30 September averaged 16,920 barrels per day, down from 19,650 barrels a day a year earlier.

"Since our half year results in August, we have been delighted with the progress made on resuming maximum production from the Tawke and Peshkabir fields, with the two fields currently back to producing around 80,000 barrels of oil per day," said chief executive Paul Weir.

"We now look forward to working with the operator to deliver an increased activity programme that can build on these production levels."

Weir said the company was "encouraged by the progress made on the operational resumption of Kurdistan exports," noting that "all Kurdistan oil production [is] now flowing through the export pipeline and being sold at Ceyhan".

"We hope that the implementation of the export payment process is effective and sees international oil companies paid their full entitlement revenue at international prices, which could enable the company to participate and significantly increase its core business cash generation," he added.

In Oman, Genel said it had started preparing to test the Batha West-1 discovery well on Block 54, where it holds a 40% interest.

The test was expected to confirm reservoir deliverability and inform the location of planned 3D seismic and additional exploration wells, with results anticipated around the end of the first quarter of 2026.

The company also said it was continuing to work towards conditions that would enable drilling of the Toosan-1 exploration well in Somaliland.

Genel ended September with $226m in cash and net cash of $135m, which it said was "prioritised for the purchase of new production assets".

The company reiterated its guidance for year-end net cash to remain broadly unchanged, and said it remained focused on maintaining a strong balance sheet that supported a "resilient, reliable, repeatable and diversified" cash flow and dividend programme.

At 0858 GMT, shares in Genel Energy were down 1.08% at 60.44p.

Reporting by Josh White for Sharecast.com.