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Shares in Tony Hayward oil firm slump 40% | |
(about 3 hours later) | |
Shares in Genel, the oil explorer chaired by former BP boss Tony Hayward, slumped to a record low after it reduced the estimated value of a key field by $1bn. | Shares in Genel, the oil explorer chaired by former BP boss Tony Hayward, slumped to a record low after it reduced the estimated value of a key field by $1bn. |
Genel cut the amount of oil it expects to recover from its Taq Taq oil field in Iraqi Kurdistan. | Genel cut the amount of oil it expects to recover from its Taq Taq oil field in Iraqi Kurdistan. |
It now forecasts "recoverable proven and probable reserves" will reach 356 million barrels of oil for 2015. | It now forecasts "recoverable proven and probable reserves" will reach 356 million barrels of oil for 2015. |
Genel had expected the area to yield 683 million barrels of crude. | Genel had expected the area to yield 683 million barrels of crude. |
It also blamed falling oil prices for the writedown on the value of Taq Taq. The price of Brent crude has fallen by 70% since June 2014 and is now $35.58 a barrel. | |
Analysts said the cut was much larger than expected. | |
"I was expecting perhaps a 10, maybe 20% cut in reserves and obviously this is more akin to a 50% cut," said Arden Partners analyst Daniel Slater. | |
Genel's shares tumbled almost 40% to a record low of 75.1p and are down 87% over the past 12 months. | |
Mr Hayward stepped down as chief executive of BP in 2010 following the Gulf of Mexico oil disaster that claimed 11 lives and caused damage to the coastline. | Mr Hayward stepped down as chief executive of BP in 2010 following the Gulf of Mexico oil disaster that claimed 11 lives and caused damage to the coastline. |