Somaliland is a highly prospective, onshore exploration province, and Genel is targeting resources of over two billion barrels of oil.
In August 2012, Genel was awarded an exploration licence for onshore blocks SL-10-B and SL-13 in Somaliland, with a 75% working interest in both. Genel extended its presence in November 2012 with the acquisition of 50% participating interest in the Odewayne Production Sharing Agreement which covers blocks SL-6, SL-7, SL-10A.
Onshore Somaliland is a relatively unexplored region, with few exploration wells drilled. The total size of the blocks is approximately equivalent to the entire Kurdistan Region of Iraq.
Genel took the opportunity because of encouraging indications including onshore oil seeps and existing geological data showing favourable conditions for hydrocarbons to have accumulated in numerous large tilted fault blocks and sub-basins. In addition, the basins of Somaliland were contiguous to Yemen prior to the opening of the Gulf of Aden in the Oligocene-Miocene - similar sedimentary sequences and structural styles are expected in Somaliland.
We are targeting resources of over 1,000 mmbbls in blocks SL-10B and SL-13. The Odewayne block has a similar resource potential to this, targeting in order of 1,000 mmbbls.
Gravity and aeromag has been acquired and interpreted over the entire 40,000 square km acreage.
The results of a surface seep study completed early in 2015 confirmed the outstanding potential offered by this huge acreage position. Genel has reached agreement with the Somaliland government on an appropriate structure to allow the acquisition of 2D seismic data to move forward. The data will be acquired as part of a Somaliland government owned speculative 2D seismic acquisition project, the Government contracting with an international seismic contractor. The Company will purchase associated data from the Somaliland Government. Seismic acquisition is expected to start in around year-end 2016.
Genel continues to seek a strategic partner for its Somaliland assets, in keeping with its strategy of balancing risk and reward and reducing upfront capital commitments. Further details on the asset, and the process, can be found here.