Genel Energy — M&A Activity 2019

Jan 21, 2019

Genel Energy PLC (GENL)

21-Jan-2019 / 07:00 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

21 January 2019

Genel Energy plc

Acquisi�on of stakes in Chevron operated blocks in the KRI

Genel Energy plc ('Genel' or 'the Company') is pleased to announce that the Company has reached agreement to acquire stakes in the Chevron operated Sarta and Qara Dagh blocks, in the Kurdistan Region of Iraq.

Genel will acquire 30% equity in the Sarta licence by paying a 50% share of ongoing field development costs un�l a specific produc�on target is reached, together with a success fee payable on achievement of a produc�on milestone. Chevron will retain a 50% interest in the Sarta licence and the Kurdistan Regional Government will hold the remaining 20%. Genel's es�mate of its total spend up to end-2020 is c.$60 million.

Drilling began on the first appraisal well, Sarta-3, in Q4 2017. The well was successfully completed and tested during the second quarter of 2018. Both that and the Sarta-2 well individually tested at rates of c.7,500 bopd. The first phase of development is expected to see these wells placed on produc�on.

Genel will acquire 40% equity of the Qara Dagh appraisal licence and become the operator through a carry arrangement. Chevron will retain 40% of the equity, with the KRG holding the remaining 20%. The Qara Dagh-2 well is set to be drilled in 2020. The Qara Dagh-1 well, completed in 2011, tested oil in two zones from the Shiranish forma�on.

Closing is subject to approval from the Kurdistan Regional Government.

Murat Özgül, Chief Execu�ve of Genel, said:

"We are delighted to have been chosen as a partner to Chevron. The agreement provides access to a phased development opportunity with significant growth poten�al at Sarta, and an exci�ng appraisal opportunity at Qara Dagh. The addi�ons to our por�olio are an important step in our diversifica�on strategy, offering a further opportunity for near-term produc�on and cash-genera�on."

-ends-

For further informa�on, please contact:

Genel Energy +44 20 7659 5100 Andrew Benbow, Head of Communica�ons Vigo Communica�ons +44 20 7390 0230 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 Bina Bawi and Miran 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:ACQ TIDM: GENL LEI Code: 549300IVCJDWC3LR8F94 Sequence No.: 7203 EQS News ID: 767713

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