Gulf Keystone Petroleum Ltd (GKP) 
Operational & Corporate Update 
13-Dec-2023 / 07:00 GMT/BST 
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13 December 2023 
 
 
Gulf Keystone Petroleum Ltd. (LSE: GKP) 
("Gulf Keystone", "GKP", "the Group" or "the Company") 
 
Operational & Corporate Update 
 
Gross average sales of c.28,800 bopd since last market update on 25 September 
Local sales continuing to cover monthly costs despite fluctuation in volumes 
 
Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, today provides an 
operational and corporate update. 
 
Jon Harris, Gulf Keystone's Chief Executive Officer, said: 
"We remain focused on preserving liquidity by maximising local sales, maintaining strict cost control and proactively 
managing accounts payable. We have continued to more than cover our monthly costs of around USD6 million and while local 
market demand remains difficult to predict and we have seen volumes fluctuate, we continue to pursue opportunities to 
increase sales. There remains no official timeline for the reopening of the Iraq-Turkey Pipeline but political and 
commercial negotiations between the Kurdistan Regional Government and the Government of Iraq are progressing and we 
believe the situation will be resolved. As an industry, we are emphasising the importance of payment surety for past 
and future oil exports and the preservation of our current Production Sharing Contract economics." 
 
Operational 
 
     -- Rigorous focus on safety maintained 
      ? No lost time incidents for over 330 days 
 
     -- Local sales of Shaikan Field crude continue in absence of pipeline exports 
      ? Gross average sales of c.28,800 bopd via trucking and pipeline between the date of our last market 
        update, 25 September, and 11 December, reflecting: c.30,000 bopd in September, c.37,200 bopd in October, 
        c.21,500 bopd in November and c.21,900 bopd between 1-11 December 
      ? Fluctuation in volumes primarily reflects competition with increased supply from other producers in 
        the region, associated refinery capacity constraints and seasonal effects on crude demand 
      ? Realised prices have continued to average around USD30/bbl, in line with local market pricing, while 
        the Company is receiving advance payments for its net entitlement of 36% of gross sales revenue 
 
 
Financial 
 
     -- Current local sales volumes and realised prices continue to enable GKP to more than cover its estimated 
    monthly costs of around USD6 million in H2 2023 (breakeven at gross sales of c.18,500 bopd and USD30/bbl) 
     -- Cash balance of USD85 million at 12 December 2023 with no debt 
 
Outlook 
 
     -- The Company remains focused on preserving liquidity by maximising local sales, maintaining strict cost 
    control and proactively managing accounts payable 
     -- Opportunities to increase local sales continue to be pursued; nonetheless, local market demand remains 
    variable 
     -- Estimated monthly net capex, operating costs and other G&A in H2 2023 remain around USD6 million, in line 
    with expectations 
     -- Expect to maintain monthly capex and cost run rate of around USD6 million into 2024 
     -- The Company continues to believe that pipeline exports will restart: 
      ? Political and commercial negotiations between the Government of Iraq ("GOI") and the Kurdistan 
        Regional Government ("KRG") are ongoing 
      ? The Association of the Petroleum Industry in Kurdistan ("APIKUR"), of which GKP is a founding member, 
        continues to engage with the KRG and has recently met with the GOI 
      ? We continue to emphasise the importance of payment surety for past and future oil exports and that 
        the current economics of the Production Sharing Contracts ("PSCs"), which are governed by English Law, must be 
        preserved 
 
 
Board composition 
The Board remains committed to meeting the required targets on independence and diversity under the 2018 UK Corporate 
Governance Code, which the Company voluntarily adheres to, and UK Listing Rules. It is currently engaged in an 
independent non-executive director search process to ensure compliance. However, the pace of the process has been 
controlled to reflect the Company's current focus on cost reduction and liquidity preservation. 
 
2023 AGM shareholder consultation 
 
The Company has conducted a shareholder consultation following the voting at the 2023 AGM. The summary of the 
consultation is available on GKP's website: www.gulfkeystone.com/investors/agm/. 
 
 
 
Enquiries: 
 
Gulf Keystone:                           +44 (0) 20 7514 1400 
Aaron Clark, Head of Investor Relations 
& Corporate Communications               aclark@gulfkeystone.com 
 
FTI Consulting                           +44 (0) 20 3727 1000 
Ben Brewerton 
                                         GKP@fticonsulting.com 
Nick Hennis

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.

----------------------------------------------------------------------------------------------------------------------- Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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ISIN:          BMG4209G2077 
Category Code: MSCH 
TIDM:          GKP 
LEI Code:      213800QTAQOSSTNTPO15 
Sequence No.:  291537 
EQS News ID:   1795511 
 
End of Announcement  EQS News Service 
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(END) Dow Jones Newswires

December 13, 2023 02:00 ET (07:00 GMT)

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