Genel Energy announces update on reserves in Taq Taq field in Iraq

Genel Energy has commissioned an updated Competent Person's Report (CPR) by McDaniel and Associates for the Taq Taq field in Iraq.

Genel Energy holds a 44% interest in the field.

The CPR has been completed in this field, which is located 60km from Kirkuk oil field.

The company announced that gross 2P reserve at Taq Taq field as of 28 February is estimated to be 59MMbbl, compared with 172MMbbl at 31 December 2015.

Cumulative oil production from the Taq Taq field is 207.9MMbbl, of which 1.8MMbbl has been produced in this year.

The reduction in reserve estimates for Taq Taq field is a result of a reassessment of the gross rock volume above the oil water contact and fracture porosity in the undrained Cretaceous Shiranish reservoir.

It is followed by an evaluation of reservoir surveillance data and well performance last year and the first two months of this year.

The McDaniel CPR also stated that there is still significant uncertainty in Taq Taq oil reserves, which is dependent on the Shiranish formation fracture porosity in the unswept portion of the reservoir.

The field is currently producing nearly 19,000bopd, compared to 36,000bopd at the end of last year.

Genel Energy also informed that production from key producing wells at the site also declined drastically.

Given the  ongoing  uncertainties  highlighted  above,  the  previous  guidance  for  2017  Taq  Taq gross average production of 24-31,000 bopd has now been discarded.

The company presently plans to announce Taq Taq field production on a monthly basis going forward. 

Due to the reserve downgrade, Genel expects to record an impairment, subject to audit, of $181m to the Taq Taq field.

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Image: Exploration well at Taq Taq field. Photo: courtesy of Genel Energy.