(Adds details, background)
Feb 14 (Reuters) - Iraqi Kurdistan-focused Genel Energy reported on Wednesday a 40 percent replacement of proved reserves (1P reserves) at its Taq Taq field, once considered the company’s flagship field.
“The 40 percent replacement of 1P reserves at Taq Taq follows the success of well TT-29w, and reflects the stability in cash-generative production that we have seen from the field in the second half of 2017,” the company’s chief executive, Murat Ozgul, said in a statement.
Genel, however, said its proved plus probable gross reserves at Taq Taq were estimated at 54.7 million barrels (MMbbls) as of Dec. 31, lower than the 59.1 MMbbls as of Feb 28.
Last month, Genel forecast a fall in full-year production due to a continuing slide in output from the Taq Taq field after a well hit water in 2016.
The Kurdistan Regional Government’s (KRG) independence referendum late last year that led to a military confrontation with Baghdad as well as sanctions from neighbouring countries have also hurt Genel as it slowed the company’s efforts to find a partner to develop the Miran and Bina Bawe gas fields.
Bina Bawi gross 2C light oil resources were estimated at 37.1 MMbbls as of Dec. 31, compared to 13 MMbbls as of July 2013, Genel said.
Genel said the Bina Bawi field represents a “potentially attractive near-term development candidate” for the company due to its close proximity to export infrastructure.
Miran West gross 2C heavy oil resources were estimated at 23.7 MMbbls as of Dec. 31, compared to 52 MMbbls as of April 2013, Genel said, adding that it has taken a more conservative view and will only record 18.5 MMbbls of viable 2C contingent resources at the field. (Reporting by Arathy S Nair in Bengaluru; Editing by Sunil Nair)