Gross 2P reserves
bopd gross production in 2016
The Taq Taq licence area is located 60 km northeast of the Kirkuk oil field and the adjacent city of Kirkuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniah. The gross area of the Taq Taq licence area is approximately 951 square km.
The Taq Taq field has been producing since 2006. As of 31 December 2016 the field had produced over 206 mmbbls.
On 29 February 2016, the Company announced that the 2P initial gross recoverable reserves (referred to in the industry as Estimated Ultimate Recovery, or EUR) for the Taq Taq field had been downgraded from 683 MMbbls to 356 MMbbls. On 28 March 2017 the Company announced a further downward revision of Taq Taq 2P EUR to 267 MMbbls, implying gross 2P reserves of 61 MMbbls at year-end 2016 (from 172 MMbbls at year-end 2015). Genel’s net share of Taq Taq 2P reserves at year-end 2016 is 27 MMbbls. The further reduction of 2P EUR for Taq Taq is a consequence of a reassessment of the gross rock volume above the oil water contact and fracture porosity in the undrained Cretaceous Shiranish reservoir, following an analysis of reservoir surveillance data and well performance from 2016.
The Company has been working on an updated Field Development Plan (‘FDP’) for the Taq Taq field. The scope of this activity has been extended to incorporate the results of recent well performance and will be further refined on the back of future development activity. The strategy at Taq Taq is to maximise recovery from the field while controlling costs, with an overall aim of generating positive cash flow from operations.
The TT-29z well is currently drilling at the field and aims to reduce the uncertainty on the free water level in the north flank, which in turn will give better understanding on remaining reserves in this location. TT-29 will also target a shallower Tertiary anomaly which could add new reserves if successful. Operations on the well are scheduled to complete in mid-2017. In addition, the firm 2017 programme for Taq Taq comprises two sidetracks of existing Cretaceous producers, further development of the Pilaspi reservoir and ESP/jet pump installation.
The Company remains of the view that Taq Taq is under drilled on the flanks of the field. Accordingly, an opportunity register, which consists of new development well locations and remedial work on existing wells, is being prepared. The Company is working with its partner in the field to determine the optimal forward development programme. The partners have agreed to further refine the future activity as the results of ongoing development activity are known. Future activity levels at Taq Taq are also subject to the continuation by the KRG of regular payments for crude sales and historical receivables.
As stated in the full year 2016 results, Genel intends to announce Taq Taq field gross production on a monthly basis going forward:
April 2017 - 18,011 bopd
May 2017 - 16,917 bopd