CEO's Message

While political disputes in Iraq relating to the regulation of the oil and gas industry prevent access to the export pipeline, Forza Petroleum continues to produce oil from the Hawler production area for sales to the local market. Although the price for oil sold to the local market is at a significant discount to international prices, full payment from local buyers is received in advance and the revenue from such sales more than covers operating costs.

In coordination with the Ministry of Natural Resources, Forza Petroleum advances its development of the Hawler production area in 2024 by installing the South Hawler Gathering System. Like with the West Hawler Gathering System commissioned earlier this year, the South Hawler Gathering System will allow production from a satellite field to be transferred to central production facilities and, by extension, tie-in to the export pipeline through a flowline instead of by road tanker. The change in operations reduces operating costs, the risk associated with road tankers, and environmental impact. As part of the continued development of the Hawler production area, Forza Petroleum will also acquire additional 3D seismic data this year. After processing the data, an improved understanding of reservoir features will support more precise placement of future wells.

Management remains engaged with industry and government to stay informed and adapt to the evolving situation in the region. With base levels of production and our prudent investments in 2024, we are building a foundation for the business that will prepare it for growth and other opportunities once political uncertainty is resolved.

Shane Cloninger     

Chief Executive Officer     

June 18, 2024