What is happening with Miran and Bina Bawi – why are you claiming compensation from the KRG?

“We have made every effort over a number of years to engage with the KRG on the development of the fields. However, the KRG has for some time made clear its intention not to permit us to develop the fields in accordance with the terms of the 2017 PSCs.

We have spent a material amount of money in good faith acquiring and trying to develop these assets and have made every effort over a number of years to engage with the KRG on their development.

However, we have been left with no practical alternative but to treat the KRG’s notices and conduct as repudiatory and to accept that the PSCs are terminated. This is not a decision we have taken lightly. We will be claiming substantial compensation from the KRG in a London seated international arbitration, and will be taking all necessary steps to protect shareholder value.

From our perspective, it is business as usual in relation to our other assets.

We have been, and remain, a committed partner of the KRG and our operations have been a tremendous boost for the Kurdistan Region, but have been left with no practical alternative in taking this action. We have invested c.$3.5 billion in the KRI, and the Tawke and Taq Taq fields alone have generated over $21 billion for the KRG, and our operations have had a huge economic impact through job creation and the build-up of local supply chains.”

What is the potential timing of the well in Somaliland?

“We are focused on completing the civil works, and then the more material capital expenditure items will be subject to review depending on the conditions at the time.”

What is your current cost of production per barrel?

“Our cost of production prior to the pipeline closing was c.$4/bbl.”

What does the Company plan to do to provide stability and strength to the share price?

“We plan to keep on delivering on our strategy. Genel is focused on delivery – adding new opportunities and progressing existing ones, and paying a material dividend when conditions allow.”

Is Genel looking to diversify away from the Kurdistan Region of Iraq?

“Our business model is focused on mitigating risk, and so it would make sense for us to use our cash to diversify into other geographical regions. The best way of protecting the balance sheet in the long-term is to act to add to cash generation.”

Is there any possibility of acquiring some near-term production utilising some of the cash available?

“We continue to look at a wide range of opportunities, focused on assets that offer near-term value for shareholders. If the opportunity to acquire production came along at the right price, then it is something that we would look to take advantage of. That said, we are not after production for the sake of adding production, but we look to boost profit and cash flow.”