RNS Number : 6975V
Gulf Keystone Petroleum Ltd.
01 February 2017
 

 

 

 

 

 

1 February 2017                                       

 

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone", "GKP" or "the Company")

 

Trading Statement and Operational Update

 

Notification of Full Year Results

 

Gulf Keystone, operator of the Shaikan Field in the Kurdistan Region of Iraq, is today providing a Trading and Operational update. This is in advance of the Company's full year results for the period ended 31 December 2016 which will be announced on Thursday 6 April 2017. The information contained herein has not been audited and may be subject to further review and amendment.

2016 Highlights

·      Average gross production for the year at 34,794 barrels of oil per day ("bopd") - within the upper-end of our 31,000-35,000 bopd guidance

·    Cumulative gross payments of $142.5 million received from the Kurdistan Regional Government's Ministry of Natural Resources ("MNR")

·      Plant uptime (at PF-1 and PF-2) of over 98%, once adjusted for export constraints, and strong safety performance with no lost-time incidents

·      The Company completed its financial restructuring on 13 October 2016 with a reinstated debt balance of $100 million and a $25 million equity raise through an Open Offer

 

Outlook

·      Average gross production during January 2017 was 37,196 bopd with only minor export disruptions, maximum daily production reached 38,384 bopd

·      Production data from Shaikan continues to support the interpretations made in the most recent Competent Person's Report ("CPR") published 31 August 2016, which reported gross Shaikan 2P Reserves of 622 million barrels of oil ("MMbo") and gross 2C resources of 239 MMbo as at 30 June 2016.

·      The Company is progressing in its ongoing discussions with the MNR regarding commercial and contractual conditions, in particular those around a regular and timely payment cycle, and crude marketing arrangements. Subject to further clarity on these points, the Company looks forward to making further investments to achieve plateau production at nameplate capacity of 40,000 bopd. Accordingly, gross production guidance for 2017 is being set at 32,000-38,000 bopd. Without further investment in the field, beyond maintenance capital, we would expect to achieve the lower-end of our guidance range.

·      Management team recently reinforced with the appointment of Stuart Catterall as Chief Operating Officer in January 2017

·      Cash position of $104 million as at 31 January 2017

·      All Gulf Keystone operations remain safe and secure

 

 

 Jón Ferrier, Chief Executive Officer, said:

"I am very pleased to announce a strong operational performance during 2016, achieving average daily production at the top of our guidance range. We have an increasingly well understood field which continues to perform in line with expectations, a healthy balance sheet, and stand ready to further invest in the Shaikan Field. However, commercial and contractual clarity around payments and marketing remain key to achieving production growth and realising full value potential." 

 

Enquiries:

 

Gulf Keystone Petroleum:

+44 (0) 20 7514 1400

Jón Ferrier, CEO

 

Sami Zouari, CFO

 

Kate Leslie, Corporate Communications Manager

 

 

 

Celicourt Communications:

+44(0) 20 7520 9266

Mark Antelme

Jimmy Lea

 

 

 

or visit: www.gulfkeystone.com 

 

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

 

Notes to Editors:

 

·           Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan field with current production capacity of 40,000 barrels of oil per day

·           Further information on Gulf Keystone is available on its website www.gulfkeystone.com

 

 

Disclaimer

 

 

This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business. These statements are made by the Company and its Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy.  This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.

 


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