Gulf Keystone Petroleum Ltd. Operational and Corporate Update (3850A)
21 Gennaio 2020 - 8:00AM
UK Regulatory
TIDMGKP
RNS Number : 3850A
Gulf Keystone Petroleum Ltd.
21 January 2020
21 January 2020
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Operational and Corporate Update
2019 gross production target met; development activity
continues
Gulf Keystone Petroleum, a leading independent operator and
producer in the Kurdistan Region of Iraq ("Kurdistan" or "Kurdistan
Region"), is providing an operational and corporate update in
advance of the Company's full year 2019 results which are scheduled
to be released on 26 March 2020.
Operational
Ø Average gross production for 2019 of 32,883 barrels of oil per
day ("bopd"), meeting original 2019 gross production guidance.
Ø Current production rates from the field at c.40,000 bopd.
Ø The side-track to the SH-9 well, designed to assess the gas
reinjection potential of the Jurassic formation, reached total
depth on 27 December 2019.
Ø The SH-9 well is currently being tested. GKP and its partner
MOL will then review plans for gas management, in consultation with
the Ministry of Natural Resources.
Ø In order to optimise the cost and production benefits from the
drilling campaign, the sequence of wells will now be SH-L then
SH-I, both of which will be drilled from the same pad and will
produce into PF-2, which has available processing capacity.
Ø The rig is currently being mobilised to drill the SH-L
production well.
Ø Full oil export from Shaikan via pipeline following
commissioning of the PF-1 export line on 10 December 2019.
Ø Safety remains a core focus. However, following over 530 Lost
Time Incident ("LTI") free days, an LTI occurred in December as a
result of a road traffic accident.
Corporate
Ø Cash balance of $192 million as at 20 January 2020.
Ø The Company returned value to shareholders by paying dividends
of $50 million in 2019 and to date repurchasing c.$35 million of
shares out of $50 million in aggregate of share buyback programmes
previously announced (with the Company today separately announcing
its intention to complete the final $10 million tranche of such
programmes).
Ø Ian Weatherdon joined the Company on 13 January as Chief
Financial Officer and Executive Board member.
Outlook
Ø With the continued development of the Shaikan Field, the
Company expects to increase average production in 2020 by more than
30% year-on-year to 43,000-48,000 bopd.
Ø Debottlenecking and facility upgrades remain on schedule.
Ø On track to reach the 55,000 bopd gross production target at
Shaikan in Q3 2020.
Jón Ferrier, CEO, commented:
"2019 saw GKP continue to realise the benefits of the Company's
recent turn around. In a year in which we returned significant
value to shareholders, through both our maiden dividend and share
buyback programmes, we also benefited from the increased
operational tempo. This resulted in the first steps along the road
to a significant production increase from Shaikan, and we are
pleased to confirm today that we achieved our original 2019 gross
production guidance.
Looking forward, the pace of the development of Shaikan
continues with the drilling and investment in our facilities, in
order to deliver our growth trajectory. With a robust balance sheet
and confidence in regular payments, we expect to be fully funded
for our work programme and continue to return value to
shareholders."
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.
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END
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