Genel Energy downgrades reserves at Kurdistan field for second time in weeks
LONDON - Genel Energy, which produces oil in the Kurdistan Region of northern Iraq, has downgraded reserves one more time, weeks after a similar reassessment led to a collapse in shares.
The London-based company said in its annual report on Friday that proven reserves at its Tawke field were 241.9 million barrels, 8 percent less than previous estimates.
In a bid to cushion some of the blow to investors from the news, Genel said it would buy back at least $50 million of its bonds, helping reassure investors reeling from a share price collapse since the company announced last month that reserves were significantly less than earlier estimates.
Last month, Genel’s shares fell 42 per cent in a day after an announcement that its Taq Taq oil field is only a third as large as previously estimated.
Genel shares have fallen more than 93 per cent over the past two years over plunging oil prices and problems the company says it has with getting paid by the Kurdistan Regional Government (KRG), which is facing a severe economic crisis.
The London-based company said in its annual report on Friday that proven reserves at its Tawke field were 241.9 million barrels, 8 percent less than previous estimates.
In a bid to cushion some of the blow to investors from the news, Genel said it would buy back at least $50 million of its bonds, helping reassure investors reeling from a share price collapse since the company announced last month that reserves were significantly less than earlier estimates.
Last month, Genel’s shares fell 42 per cent in a day after an announcement that its Taq Taq oil field is only a third as large as previously estimated.
Genel shares have fallen more than 93 per cent over the past two years over plunging oil prices and problems the company says it has with getting paid by the Kurdistan Regional Government (KRG), which is facing a severe economic crisis.