Gulf Keystone Petroleum Ltd. Trading Statement and Operational Update (6975V)
February 01 2017 - 2:02AM
UK Regulatory
TIDMGKP
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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