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Genel Energy Plc Trading And Operations Update

At Tawke, wellhead, processing and pipeline capacity was successfully doubled to 200,000 bopd during H1 2015.

Genel Energy plc (“Genel” or “the Company”) issues the following trading and operations update in
advance of the Company’s half-year 2015 results, which are scheduled for release on 6 August 2015.
The information contained herein has not been audited and may be subject to further review.

Tony Hayward, Chairman of Genel, said:

“Production has grown rapidly in the first half of the year, increasing 41% year on year, with
operational delivery driving record volumes above 100,000 bopd net to Genel on peak days. This
increase has been integral in helping the Kurdistan Regional Government achieve its export goals,
and the KRG is firmly committed to ensuring companies are paid in full for their production. Over
600,000 bopd of exports are now flowing to Ceyhan and, as distribution of the resulting revenues
stabilises, the KRG is moving towards a financial position from which to make export payments to

Progress has also been made on our world-class Miran and Bina Bawi assets, the development of
which provides a huge opportunity for both Genel and the Kurdistan Region of Iraq as a whole. We
are now working on putting in place all of the components to progress this transformational project
to its development and ultimate monetisation.”

 Net working interest production for H1 2015 averaged 88,800 bopd, an increase of 41% on H1
2014. The Company’s net working interest production in May and June was 95,600 bopd

 The Company’s 2015 production guidance is maintained at 90-100,000 bopd

 Gross production by field and sales route for H1 2015 is as follows:
(bopd) Export via pipeline Domestic sales Bazian refinery Total

 In H2 2015, Genel will seek to optimise the mix between domestic and export sales from Taq Taq
and Tawke, balancing the benefit of near-term cash flows with the requirement for both fields to
contribute to exports via the KRI-Turkey pipeline

 At Taq Taq, surface processing capacity stands at 150,000 bopd following the successful
commissioning of a temporary production facility in Q1 2015. Completion and commissioning of
the second central processing facility, which has planned capacity of 90,000 bopd, is on track for
year-end 2015

 At Tawke, wellhead, processing and pipeline capacity was successfully doubled to 200,000 bopd
during H1 2015. Record daily production of c.180,000 bopd was delivered in late May


 The KRI oil pipeline from Khurmala to Fishkhabur now has capacity of 700,000 bopd, with plans
to increase to 1 mmbopd in 2016 through installation of additional compression

 According to Kurdistan Regional Government (“KRG”) data, in May and June 2015 574,400 bopd
was exported from northern Iraq to Ceyhan, not taking into account pipeline downtime,
representing 20% of total Iraqi crude exports in that period, and underscoring the strategic
importance of the KRI pipeline

 Production from Taq Taq and Tawke is not constrained by pipeline capacity


 Progress has been made on all necessary components for the development of the Miran and
Bina Bawi fields, which will deliver the gas supply to underpin the KRI-Turkey Gas Sales
Agreement, signed in November 2013:

- In June 2015, Genel executed a detailed term sheet with the KRG for the upstream
production sharing contract, which retains Genel’s upstream project economics in line with
the original framework announced in November 2014

- A company will be contracted by the KRG on a build, own, operate and transfer (“BOOT”)
basis for the gas treatment facilities. Genel is working with the KRG on the midstream
development, currently leading discussions in relation to FEED, EPC tender, and financing

- Genel will sign a gas supply agreement with the KRG for the sale of raw gas from Miran and
Bina Bawi

 The sale and purchase agreement for OMV’s 36% operated stake in the Bina Bawi field is
proceeding in parallel with the progress on the wider gas project, and is expected to complete
on the signing of final contracts


 Revenue for H1 2015 is estimated at $200 million

 In H1 2015, crude oil realisations averaged c.$42/bbl, a 42% decrease on H1 2014 due to the
impact of lower global oil prices

- Pipeline export realisations for Taq Taq and Tawke are estimated at $45/bbl and $40/bbl

- Taq Taq domestic market sales (including Bazian refinery) realised c.$44/bbl

- Tawke domestic market sales realised $36-38/bbl

 2015 revenue guidance is unchanged at $350-400 million on a Brent oil price of $50/bbl

 In its H1 2015 accounts, Genel expects to record an exploration expense of c.$10 million in
respect of its Africa and KRI operations


 Capital expenditure in H1 2015 is estimated at $90 million, the majority of which was spent on
the Taq Taq and Tawke development programmes

 2015 capex guidance is reduced to $150-200 million from $200-250 million, due to the exiting of
exploration commitments and capital discipline on our KRI operations. Overall activity levels and
associated expenditure during 2015 will continue to depend on oil prices and the evolution of
payments for KRI exports

 Successful issue of $230 million senior unsecured bonds in March 2015

 Cash balances at 30 June 2015 stood at c.$470 million, with net debt of c.$220 million. Cash
balances reflect a net trade receivable with the Kurdistan Regional Government of c.$378 million
at the end of the period (from c.$230 million at end 2014), in addition to a working capital draw
of c.$60 million in respect of 2014 Africa exploration activity


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