Genel revises Kurdistan oilfields reserves

UK’s Genel Energy said it has revised its Taq Taq, Bina Bawi and Miran oil reserves after a new report on the Kurdistan oilfields.

The oil and gas exploration and production company said at Taq Taq, McDaniel’s competent person’s report (CPR) resulted in a 12 per cent reserves replacement for 2P and 40 per cent reserves replacement at the higher confidence 1P level as a result of stabilising production and the integration of well TT-29w.

Taq Taq gross 2P reserves at the end of December were estimated by McDaniel to be 54.7 million barrels, compared to 59.1 million barrels end of February 2017, despite production in the period which was partly offset by a small upward technical revision.

“The replacement reflects the stability in cash-generative production that we have seen from the field in the second half of 2017,” Murat Özgül, chief executive of Genel said in a statement.

Genel’s Bina Bawi gross 2C light oil resources estimate by RPS Energy Consultants rose at the end of Dec. to at 37.1 million barrels, compared to 13 million barrels at the of July 2013. The increase reflects higher recovery factors than initially estimated due to integrating learnings from analogue carbonate fields of similar oil quality.

“The significant increase in high-value Bina Bawi 2C oil resources offers a tangible opportunity for near-term value creation,” Özgül said.

Because the high-quality Bina Bawi oil is in close proximity to export infrastructure, the field represents a potentially attractive near-term development candidate for the company.

Meanwhile, the Miran oil resources were decreased in the estimate by RPS to 23.7 million barrels from 52 million barrels in April 2013. The volumes were reduced as the view on the oil water contract uncertainty range as well as reservoir properties including data from MW-5 drilled in July 2013.

“Because of field experience at Taq Taq, Genel management has taken the view that it is unlikely that any matrix will contribute to primary depletion at Miran and, as such, has taken a more conservative view and will only record 18.5 MMbbls of viable 2C contingent resources at the field,” the company said.