Genel Energy Hikes Stake in Kurdish Oil, Gas Block

Genel Energy has agreed to acquire an additional 26 per cent interest in the Miran exploration block in the Kurdistan Region of Iraq from Heritage Energy Middle East (HEME), a wholly owned subsidiary of Heritage Oil Plc.  for $156 million.

The move allows Genel Energy to increase its interest in the Miran Block a commercial gas discovery, from a 25 per cent working interest to a 51 per cent working interest (38.5 per cent working interest post KRG back-in right)

In addition, Genel Energy will provide a bilateral loan of $294 million to Heritage, secured on Heritage's shares in HEME as well as HEME's remaining working interest in the Miran Block. As part of the Acquisition, Genel Energy will become joint operator of the Miran Block.