Genel Energy has a 40% interest in the Chia Surkh licence located in the southernmost region of the Kurdistan Region, adjacent to the Iranian border. It is 70 km from Sulaimaniyah and 120 km from Kirkuk.
The first exploration well to be drilled on this block since 1954, Chia Surkh 10, spudded in October 2012 and was announced as a discovery in April 2013.
The CS-11 appraisal well was drilled in 2013, with the CS-12 exploratory appraisal well then spudded in March 2016, with a view to refining the resource potential of the licence. Genel was carried on its share of the CS-12 well costs by its partner Petoil.
The well was drilled to a measured depth of 2,500 metres ahead of time and budget. The primary Oligocene and Eocene objectives proved to be water bearing.
Work continues to establish a low cost development solution for the discovered Tertiary oil resources, which are currently estimated at 3-10 mmbbls. An FDP submission is targeted by year-end 2016. Consequently, the Company expects to write down the Chia Surkh carrying value to a nominal amount.