-Tony Hayward’s anglo-turkish oil firm Genel Energy today confirmed that drilling has now begun on its first well on the Chia Surkh exploration block in Iraqi Kurdistan.

The block spans 984 square kilometres in the southern part of the Kurdish region. It has an estimated 300 million barrels of prospective oil resources.

The Chia Surkh 10 well will be drilled to a total depth of 2,500 metres to test Lower Miocene to Palaeocene targets.

The well results are expected in the first quarter of next year.

Genel has a 60% interest in Chia Surkh. City broker Oriel Securities estimate that Chia Surkh is worth a 'risked' 38p per share at this stage.

The broker highlighted, in a note today, that Genel is hosting a capital markets day this week and it beleives the company is likely to update on the plans for the Miran gas development as well as its exploration programme - which now includes new licences in Malta, Morocco, Cote d’Ivoire and Somaliland.