Genel Energy reported it is to acquire a 23 per cent stake in the Bina Bawi exploration licence. The Bina Bawi licence lies alongside the producing Taq Taq oilfield where current potential output is some 80,000 barrels a day and is projected to rise to some 200,000 barrels a day.

Bina Bawi licence covers an area of 246 square kilometres to the east of Erbil. Genel said two of the three wells drilled on the block to date had encountered significant hydrocarbons.

The acquisition will be made through the purchase for $175 million of all of the share capital of A&T Petroleum Company Ltd, current holders of the stake. A&T is wholly owned by Petoil Petroleum and Petroleum Products International Exploration and Production Inc. The deal will be financed from Genel's existing cash resources.

Tags: Genel Energy