Gross 2P reserves
bopd gross production in 2016
The Taq Taq licence area is located 60 km northeast of the Kirkuk oil field and the adjacent city of Kirkuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniah. The gross area of the Taq Taq licence area is approximately 951 square km.
The Taq Taq field has been producing since 2006. As of 30 June 2017 the field had produced over 210 mmbbls, generating over $12 billion in sales.
On 29 February 2016, the Company announced that the 2P initial gross recoverable reserves (referred to in the industry as Estimated Ultimate Recovery, or EUR) for the Taq Taq field had been downgraded from 683 MMbbls to 356 MMbbls. On 28 March 2017 the Company announced a further downward revision of Taq Taq 2P EUR to 267 MMbbls, implying gross 2P reserves of 61 MMbbls at year-end 2016 (from 172 MMbbls at year-end 2015). Genel’s net share of Taq Taq 2P reserves at year-end 2016 is 27 MMbbls. The further reduction of 2P EUR for Taq Taq is a consequence of a reassessment of the gross rock volume above the oil water contact and fracture porosity in the undrained Cretaceous Shiranish reservoir, following an analysis of reservoir surveillance data and well performance from 2016.
The overriding strategy for the Taq Taq field is to generate free cash flow flow – and $32 million in free cash flow was generated in the first half of 2017 – and maximise gross ultimate recovery.
The main objective in the TT-29w well, which has been drilling since February 2017, is to reduce the uncertainty on the free water level in the north flank of the field. The well, which is appraising the northern end of the field, reached target depth of 3,100 metres in early September 2017. A testing programme is now underway. Further development of the Cretaceous reservoir has been deferred pending results of the TT-29w testing programme.
The EDC-24 rig has moved to the TT-30 well location, with two shallow horizontal wells set to be drilled in the Pilaspi reservoir before the end of the year
As stated in the full year 2016 results, Genel intends to announce Taq Taq field gross production on a monthly basis going forward:
- October 2017 - 13,351 bopd
- September 2017 - 13,475 bopd
- August 2017 - 14,043 bopd
- July 2017 - 14,705 bopd
- June 2017 - 15,939 bopd
- May 2017 - 16,917 bopd
- April 2017 - 18,011 bopd