Gulf Keystone Petroleum Ltd. Impact of Coronavirus (COVID-19) on operations (1885G)
March 16 2020 - 3:00AM
UK Regulatory
TIDMGKP
RNS Number : 1885G
Gulf Keystone Petroleum Ltd.
16 March 2020
16 March 2020
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Impact of Coronavirus (COVID-19) on operations
Production operations currently unaffected
The Company has been closely monitoring the Coronavirus
(COVID-19) situation in the Kurdistan Region of Iraq. Gulf
Keystone's priority is the welfare of its staff, contractors and
the communities close to its operations. We remain committed to
deliver safe operations, protection of the asset and the underlying
business.
In an attempt to limit the spread of Coronavirus (COVID-19), the
Kurdistan Regional Government, in line with many other
jurisdictions, has put in place a series of tight controls on the
movement of personnel into and around the region. With these
controls, along with the increasing global restrictions on
movement, it has become difficult to ensure Gulf Keystone has the
appropriate drilling personnel and equipment on site in order to
continue safe drilling operations. Therefore, with the SH-13 well -
the current well in the campaign - at a safe stage, the decision
has been taken to suspend drilling activities until conditions
improve to ensure safe operations.
Production rates from the field are at c.38,000 bopd and
production currently continues unaffected by the impact of
Coronavirus (COVID-19). However, as a precaution, the Company has
restricted the access to its production facilities. As a result,
certain construction activities related to the expansion to 55,000
bopd have also been suspended until circumstances improve.
The current situation is extraordinary and we believe that our
actions protect the long-term value of the asset. The planned
production increase to 55,000 bopd, scheduled for Q3 2020, and
average production guidance for 43,000 - 48,000 bopd remain
priorities. However, the suspension of drilling and certain
expansion operations may impact Gulf Keystone's ability to meet
these targets in the timeframes currently in place. Gulf Keystone
will continue to closely monitor this fast-moving situation and
will provide updates, as appropriate. As previously announced, the
Company will release its Full Year results on 26 March 2020.
Notwithstanding the above, the Company remains in a strong
financial position to manage through these turbulent times with a
cash balance of $159 million, as at 13 March 2020.
Jón Ferrier, CEO, commented:
"As a Company we place the welfare of our people and those we
work with and near as our absolute priority. We also have to be
confident of having the right people on site to continue safe
operations. Whilst we are not aware of any employees or contractors
having been infected, we believe it is prudent to suspend drilling
and certain production facility expansion operations during this
time. We are watching the situation closely and will keep all of
our stakeholders informed of developments. Meanwhile, the Shaikan
Field itself is performing well."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Celicourt Communications: + 44(0) 20 8434 2754
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent
operator and producer in the Kurdistan Region of Iraq. 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
STRBCGDXXXBDGGU
(END) Dow Jones Newswires
March 16, 2020 03:00 ET (07:00 GMT)
Gulf Keystone Petroleum (LSE:GKP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gulf Keystone Petroleum (LSE:GKP)
Historical Stock Chart
From Apr 2023 to Apr 2024