Genel Energy — AGM Information 2018

May 17, 2018

Genel Energy PLC (GENL)

17-May-2018 / 07:00 GMT/BST

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17 May 2018

Genel Energy plc

AGM Statement

Stephen Whyte, Chairman of Genel Energy plc ('Genel' or 'the Company'), will give the following update on the business at the Company's Annual General Mee�ng, which is being held at 11.00am today at Linklaters LLP, One Silk Street, London, EC2Y 8HQ.

"A�er a landmark 2017, Genel is con�nuing to build momentum and generate significant amounts of cash, successfully progressing our strategy as we strive to create value for shareholders. Payments from the Kurdistan Regional Government ('KRG') have remained regular in 2018, and Genel has received over $100 million in the year so far. We are now approaching three years of consistent payments from the KRG.

Our firm focus on capital discipline and iden�fying the best route to shareholder value crea�on has converted a material por�on of these revenues into free cash flow, and our cash con�nues to grow at pace. This has led to a material improvement in our financial strength: as at 1 May 2018, unrestricted cash balances stood at $208 million ($162 million at 31 December 2017), with IFRS net debt at $89 million, a reduc�on of $46 million in the first four months of the year.

Our disciplined capital alloca�on strategy targets those opportuni�es that can create maximum value for shareholders. Given the poten�al and performance of the Peshkabir field, this is the focus of our capital expenditure in the first half of 2018, as the field offers exci�ng near-term produc�on upside.

The first three of the six wells planned at Peshkabir have progressed on �me and on budget. The Peshkabir-4 well is set to begin tes�ng imminently, Peshkabir-5 has reached target depth and will be tes�ng shortly, and Peshkabir-6 is drilling ahead.

As the operator DNO has stated, produc�on of 30,000 bopd is being targeted by the summer, doubling the 15,000 bopd from the field in the year to date - with the poten�al for more to follow. As Peshkabir cash flows benefit from the Receivable Se�lement Agreement, and the oil price is con�nuing to show strength, this increase in produc�on promises a further increase in cash flow from the Tawke PSC.

Away from Peshkabir, the Tawke-48 well was brought onstream in April at more than 5,000 bopd, and addi�onal development wells will follow in 2018 following mobilisa�on of a fourth rig. At Taq Taq, current gross produc�on is just under 13,000 bopd, ahead of the resump�on of drilling in the second half of the year.

Our exis�ng por�olio offers material growth poten�al, with Peshkabir the first of many opportuni�es, and we have the flexibility to move forward with those opportuni�es that can create the most value. Bina Bawi and Miran retain transforma�onal poten�al, both in terms of gas and oil. The upstream part of the gas project has been materially de-risked and light oil at Bina Bawi offers an exci�ng opportunity, the progression of which is a key focus.

As work con�nues to generate value from our current assets, we also have the financial strength to add assets that build on the strengths of our por�olio. Governed by strict investment criteria priori�sing areas with low to moderate poli�cal risk while retaining a focus on significant cash genera�on, Genel has the poten�al to develop a rich funnel of opportuni�es and in turn fulfil our strategic ambi�on of being a world-class independent E&P creator of shareholder value.

We have a clear strategy, material growth opportuni�es, and the right management team to deliver on that strategy."

Genel will announce results for the six months ending 30 June 2018 on Tuesday 7 August 2018.

-ends-

For further informa�on, please contact:

Genel Energy +44 20 7659 5100 Andrew Benbow, Head of Communica�ons Vigo Communica�ons +44 20 7830 9700 Patrick d'Ancona

Notes to editors:

Genel Energy is an independent oil and gas explora�on and produc�on company listed on the main market of the London Stock Exchange (LSE: GENL, LEI: 549300IVCJDWC3LR8F94). The Company, with headquarters in London and offices in Ankara and Erbil, is one of the largest Londonlisted independent oil producers, and is the largest holder of reserves and resources in the Kurdistan Region of Iraq. Through its Miran and Bina Bawi fields, the Company is posi�oned to be a cornerstone provider of KRI gas to Turkey under the KRI-Turkey Gas Sales Agreement. Genel also con�nues to pursue further growth opportuni�es. For further informa�on, please refer to www.genelenergy.com.

ISIN: JE00B55Q3P39 Category Code:MSCM TIDM: GENL LEI Code: 549300IVCJDWC3LR8F94 Sequence No.: 5555 EQS News ID: 686957 End of AnnouncementEQS News Service