Genel Energy will acquire a 26 per cent interest in Miran exploration block in the Kurdistan Region of Iraq from Heritage Energy Middle East Limited (HEME) for US$156mn
The acquisition will allow Genel Energy to increase its interest in the block from a 25 per cent to a 51 per cent working interest.
Genel Energy will also provide a bilateral loan of US$294mn to Heritage that will be secured on Heritage's shares in HEME and HEME's remaining working interest in the Miran block, as well as becoming joint operator of the block.
Genel Energy and Heritage will establish a new joint venture company to manage the Miran block, to be held between them pro rata to their working interests in the field.
The Miran block covers approximately 1,105 sq m in the southern part of the Kurdistan Region of Iraq, and contains two large contiguous structures, Miran West and Miran East.
In 2008 Heritage acquired 2D seismic data that identified the two structures that together cover approximately one third of the entire area. Well results have established that the Miran block contains two hydrocarbon systems with oil in the shallower upper cretaceous section and gas/condensate within the deeper lower cretaceous and jurassic formations.
HEME is a subsidiary of oil and gas exploration and production company Heritage Oil Plc.
