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RNS Number : 5631S
Gulf Keystone Petroleum Ltd.
09 July 2015
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indirectly, in whole or in part in or into the United States or any
jurisdiction other than the United Kingdom and Bermuda where to do
so would constitute a contravention of the relevant laws or
regulations of such jurisdiction. This announcement (and the
information contained herein) does not contain or constitute an
offer to sell or the solicitation of an offer to purchase, nor
shall there be any sale of securities in any jurisdiction where
such offer, solicitation or sale would constitute a contravention
of the relevant laws or regulations of such jurisdiction.
9 July 2015
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone" or "the Company")
Operational Update ahead of Annual General Meeting
Progressing towards a regular payment cycle
Ahead of the Company's Annual General Meeting today, Gulf
Keystone, the operator of the world class Shaikan field in the
Kurdistan Region of Iraq, is providing an operational update.
The Company continues to produce at stable rates from both
Shaikan production facilities (PF-1 and PF-2). Following
debottlenecking work performed on both facilities, well and plant
capacity exists for production rates in excess of 43,000 barrels of
oil per day ("bopd"). However, production guidance below has been
adjusted to take into account potential offtake and market
constraints.
The rolling production average from the Shaikan field for the
past two months has been 38,000 bopd and a new daily production
record of 44,600 bopd was established on 21 June 2015. Cumulative
production from the field has now surpassed 13 million barrels of
oil.
It is the Directors' current expectation that production will
remain within the range of 36,000-40,000 bopd between now and the
year end, subject to offtake.
Due to the previously announced five week suspension of
production operations at the end of Q1 2015, caused by adverse
market conditions, the daily production average for the year is
expected to be between 30,000 and 34,000 bopd.
The Company continues to make progress towards a regular payment
cycle for its current production. In line with the recently
announced new contract with the domestic buyer and further to the
first payment of US$4.9 million gross (US$3.9 million net to Gulf
Keystone) received last week, an additional payment of US$6.7
million gross (US$5.4 million net to Gulf Keystone) has now been
received by the Company for crude oil exported in June 2015 by
truck to the Turkish coast, bringing total payments under this
contract to date to US$11.6 million gross (US$9.3 million net to
Gulf Keystone).
In addition and in line with the stated diversified marketing
strategy, the Company expects in the near future to commence
trucking Shaikan crude 120 km to Fyshkhabour on the Turkish border
where it will be injected into the export pipeline to Ceyhan. Once
injection into the pipeline at Fyshkhabour commences and a payment
mechanism for this production is established with the Kurdistan
Regional Government's Ministry of Natural Resources ("MNR"),
Shaikan crude will be sold as part of the internationally traded
blend and higher netback prices should result.
As of 8 July 2015, the Company's cash position was US$72.1
million with further payments anticipated as a result of the
ongoing contract with the domestic buyer and continuing dialogue
with the MNR.
The Company's half year results for the period ended 30 June
2015 will be announced on Thursday 27 August 2015.
Commenting on today's announcement, Jón Ferrier, Chief Executive
Officer of Gulf Keystone said:
"As we work towards our primary objective of establishing a
regular payment cycle for crude oil sales from the Shaikan field,
today's confirmation of a further payment of US$6.7 million gross
represents another important development for Gulf Keystone's
financial position"
"The Shaikan field is performing well, with current production
at stable rates and an average daily offtake of 38,000 bopd
achieved in June. Taking into account the suspension of production
operations earlier in the year due to external market factors,
today's performance allows us to exit the year at an average rate
of between 30,000 and 34,000 bopd, subject to future market
factors."
Gulf Keystone will hold its Annual General Meeting today at
12.00 noon at Le Meridien Etoile 81 Boulevard Gouvion-Saint-Cyr,
75017 Paris, France.
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Anastasia Vvedenskaya, Head of Investor
Relations +44 (0) 20 7514 1411
Celicourt Communications: +44 (0) 20 7520 9266
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
Notes to Editors:
-- Gulf Keystone Petroleum Ltd. (LSE: GKP) is an independent oil
and gas exploration with operations in the Kurdistan Region of
Iraq.
-- Gulf Keystone Petroleum International (GKPI) holds Production
Sharing Contracts for four exploration blocks in Kurdistan, the
Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.
-- GKPI is the operator of the Shaikan Block, which is a major
commercial discovery, with a working interest of 75% and is
partnered with MOL Kalegran Limited (a 100% subsidiary of MOL
Hungarian Oil and Gas plc.) and Texas Keystone Inc., which have
working interests of 20% and 5% respectively.
-- Gulf Keystone plans to move into the large-scale phased
development of the Shaikan field targeting 100,000 bopd of
production capacity during Phase 1 of the Shaikan Field Development
Plan.
Disclaimer
This announcement contains certain forward-looking statements.
These statements are made by the Company's 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 uncertainties, including both economic
and business factors, underlying such forward-looking information.
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.
This communication and the information contained herein is not
an offer of securities for sale in the United States. Securities
may not be offered or sold in the United States unless they are
registered or are exempt from registration. Any public offering of
securities to be made in the United States would be made by means
of a prospectus that would contain detailed information about the
company and its management, as well as financial statements. The
company does not intend to register any portion of this offering in
the United States or to conduct a public offering in the United
States or any other jurisdiction. Any public offering of securities
to be made in the United States would be made by means of a
prospectus that would contain detailed information about the
Company and its management, as well as financial statements. Copies
of this communication are not being, and should not be, distributed
in or sent into the United States.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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