Genel Energy plc announced that a second drill-stem test carried out on the Chia Surkh 10 well has confirmed the existence of an additional oil bearing section. The test was carried out over a 12 metre zone in a younger Miocene section than the first drill-stem test, and flowed at sustained rates of 3,200 barrels of oil a day and 8.4 million cubic feet of gas. The oil was 38 degrees API and well-head flow pressure 2,550 pounds a square inch. The successful completion of the second test on the Chia Surkh 10 well confirms that the presence of a significant oil discovery in Chia Surkh. As previously announced, the well will now be suspended as a future producer. The first appraisal well Chia Surkh 11 is already drilling on the same structure.

Genel Energy plc reported interim management statement for the first quarter of 2013. The company’s net working interest production for the first quarter averaged 37,000 bopd. The company’s are revenues in line with budget due to strong price realisations from domestic sales of around $70 per barrel. For the year 2013, the company’s production guidance unchanged at 45,000 bopd to 55,000 bopd, revenue between $300 million to $400 million and capital expenditure guidance unchanged between $400 to $500 million (including Africa capital expenditure at $150 million.

Genel Energy announced that the first of five exploration wells it plans to drill this year in the Kurdistan Region of Iraq has made a significant oil discovery. The company announced the Chia Surkh 10 well was drilled to a depth of 1,696 metres in the Oligo-Miocene section, and, in tests extending over several days, flowed at up to 11,950 barrels of oil a day and 15 million cubic feet of gas. The oil was 41 degrees API and well-head flow pressure 2,000 pounds a square inch. Chia Surkh 10 was drilled on a large thrust-fault, controlled structure with up to 94 square kilometres of closure. A second drill-stem test is being planned for the Miocene section, after which the well will be suspended as a future producer. Chia Surkh 10 is the first exploration well to be drilled on the Chia Surkh acreage since 1954. The 985 square kilometre licence is operated and held 60% by Genel Energy. The remaining 40% is held equally between Petoil Inc. and the Kurdistan Regional Government.