Gulf Keystone Petroleum Ltd. Operational and Corporate Update (4624C)
January 22 2018 - 1:00AM
UK Regulatory
TIDMGKP
RNS Number : 4624C
Gulf Keystone Petroleum Ltd.
22 January 2018
22 January 2018
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Operational & Corporate Update
Notification of Full Year Results
Gulf Keystone, operator of the Shaikan Field in the Kurdistan
Region of Iraq ("Kurdistan"), is today providing an operational and
corporate update. This is in advance of the Company's full year
results for the period ended 31 December 2017 which are expected to
be announced on Wednesday 11 April 2018. The information contained
herein has not been audited and may be subject to further review
and amendment.
Operational Update
-- GKP has continued its strong safety performance in 2017 and
into 2018 with no lost-time incidents at the Shaikan field.
Operations in the area remain secure.
-- Plant uptime of 99% in 2017 helped contribute to an average
gross production of 35,298 barrels of oil per day ("bopd"), in the
middle of our guidance range of 32,000-38,000 bopd for the
year.
-- Since 15 November 2017, the Kurdistan Regional Government's
("KRG") Ministry of Natural Resources ("MNR") has resumed exporting
the Shaikan crude via the export pipeline to Turkey. The Company
sees the latest export development as confirmation of the
suitability of the Shaikan crude within the Kurdish blend.
-- The Company was encouraged by the signature of the crude oil
sales agreement announced on 16 January 2018. The Company is also
in dialogue with the MNR on the terms of a potential 2(nd) PSC
Amendment.
-- Subject to resolution of the commercial matters and the KRG
continuing regular payment of monthly invoices, the Company
currently intends on investing this year in wells and facilities to
expand production capacity to 55,000 bopd.
-- Part of these investments would include the hook-up of a
short (400m) spur pipeline from Production Facility 2 to the Atrush
export line, which links to the main export oil line to Turkey.
This will reduce trucking requirements, HSE risk and improve
netbacks.
-- Final investment plans for 2018 are under review and will be
provided to the market in due course.
Corporate Update
-- Gross production guidance for 2018 is being set at
27,000-32,000 bopd. The lower range compared to 2017 is due to the
need to install downhole pumps in some wells, which are part of the
investment programme delayed into 2018.
-- Chairman Keith Lough has informed the board of his intention
to step down. Keith joined GKP as a non-executive Director in
October 2015 and assumed the role of Chairman in July 2016. Keith
successfully steered the Company through its financial
restructuring in 2016 and oversaw the strengthening of GKP's
balance sheet and continued improvement of GKP's corporate
governance. He leaves the Company ahead of a new phase of its
development where the focus is on operations and investment. The
Company thanks Keith for his wise counsel and commitment to the
business. A search is underway for Keith's successor as Independent
Chairman and the Board will ensure a smooth and orderly
transition.
-- The Company confirms that, after two and a half years'
service, Nadhim Zahawi, the Chief Strategy Officer, left the
Company in December 2017. The Company thanks Nadhim for his
valuable contribution.
-- Cash position of $157 million as at 19 January 2018.
Commenting, Jón Ferrier, CEO, said:
"Following a further year of strong operational delivery where
production guidance has been met, the Company is now focused on
achieving the commercial framework to significantly increase
investment in Kurdistan to step up gross production to 55,000 bopd
in the near to medium term, a material step towards development of
the full potential of the field and production around ca.100,000
bopd.
We are very pleased with the progress made to date on the
commercial and operational matters to implement this and look
forward to concluding commercial matters in the near future. On
behalf of all the Company we wish Keith Lough well and thank him
for his valued and constructive contribution to the Company and the
Board. We will update the market in due course on our progress
throughout 2018."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
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 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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