Shares in the London-listed firm surged 22% to 61 pence following the announcement, recovering their losses for the year but still trailing the price DNO proposed. DNO, which already operates the Tawke field alongside Genel, argued its all-cash offer provided shareholders with immediate certainty regardless of Genel’s separate, ongoing pursuit of Egypt-focused Capricorn Energy.

The rejection highlights a broader trend among London-listed energy producers, which have frequently traded below the value of their underlying assets. Analysts suggest this gap makes these firms prime targets for acquirers seeking established, cash-generative production at a lower cost than new development. This latest move comes as oil companies operating in the Kurdish region face mounting pressure from production and export suspensions caused by regional geopolitical volatility, pushing many to look for diversification.