Genel reached agreement to acquire stakes in the Chevron operated Qara Dagh block, in the Kurdistan Region of Iraq, in January 2019.

Genel acquired 40% equity in the Qara Dagh appraisal licence and became the operator through a carry arrangement, covering activity for the QD-2 well. This well is estimated to cost c.$40 million and is set to be drilled in H1 2020.

Qara Dagh offers an exciting appraisal opportunity. The Qara Dagh prospect was first tested by the vertical exploration well QD-1 in 2011. The reservoir was encountered much deeper than prognosed and operational issues meant the well was significantly overbalanced when drilling the reservoir, in so doing damaging the reservoirs ability to flow hydrocarbons. Despite these setbacks QD-1 still tested a light oil from Cretaceous fractured carbonates.

Re-evaluation of the structural model post QD-1, based on new 2D seismic combined with fieldwork, indicates that the well was drilled on the south-eastern flank of the prospect. The location for the second exploration well, QD-2, has been chosen to test the structural crest c.10 km to the NW of where QD-1 flowed oil to surface.  QD-2 will be drilled with a deviated trajectory through the same reservoir tested by QD-1 in order to maximise fracture intersection. Managed pressure drilling is being considered to minimise reservoir damage. Genel has undertaken a baseline Environmental, Social and Health Impact Assessment study and construction work on the well pad and associated camp has now begun.

A contract with Parker Drilling has been signed for the drilling of the QD-2 well, which is on track to spud in H1 2020.