Search Results | '"Gulf Keystone"'

Gulf Keystone KRG Operations Update

Gulf Keystone KRG Operations Update

By John Lee.

Gulf Keystone (pictured: CEO John Gerstenlauer) an independent oil and gas exploration, development and production company with operations in the Kurdistan Region of Iraq (“Kurdistan Region”), today announces its results for the six months ended 30 June 2014.

Operational highlights

·           Gulf Keystone’s operations in the Kurdistan Region remain secure and production and crude oil sales from the Shaikan field have not been interrupted in any material way

·           Ramp-up of Shaikan production in H1 2014 from 10,000 gross barrels of oil per day (“bopd”) to rates of in excess of 20,000 gross bopd through the tie-in of an additional producing well to Shaikan PF-1 and the commencement of production operations from Shaikan PF-2

·           Crude oil export deliveries by truck to Turkey in H1 2014 totalled 2.2 million barrels gross with total gross production from Shaikan to date fast approaching 5.5 million barrels

·           Initial payments for the export crude oil sales received with the realised price at the Shaikan facility estimated as US$51-56/bbl. Through an ongoing dialogue with the Ministry of Natural Resources of the Kurdistan Regional Government (“MNR” and “KRG”), the Company is seeking to establish a regular  payment cycle for past and future Shaikan crude oil export sales

·           Gross domestic sales for H1 2014 of 0.1 million barrels with a realised price of US$42/bbl

·           Agreement of the Field Development Plan (“FDP”) for the Akri-Bijeel Block by the MNR in August with production from the Bijell and Bakrman discovery areas expected by MOL Kalegran Limited, the operator, to reach 35,000 gross bopd in 2015

Financial highlights

·      Revenues of US$18.7 million achieved for H1 2014 (1H13: $nil; FY13: $6.7 million); additional revenue in the region of US$35 million owed but not yet recognised for H1 2014 crude oil export sales

·      Loss after tax for H1 2014 of $29.8 million (1H13: $26.4 million; FY13: $32.0 million)

·      Net proceeds of US$240 million raised from the issue of debt securities and associated warrants in April 2014

·      Cash and cash equivalents at 26 August 2014 of US$177 million

Outlook

·           Company continues to target 40,000 bopd of Shaikan production by year end through the tie-in of three additional producing wells (Shaikan-7, -8 and -10), although certain consequences of the recent security situation, including the current short term limited availability of some international contractors, may cause this to move to Q1 2015

·           Conclude discussions with the MNR on the establishment of a regular and predictable payment cycle for past and future Shaikan crude oil export sales in order to generate steady revenues, which is of critical importance to Gulf Keystone’s funding position

·           Manage expenditure in a responsible and prudent manner, continuing to review and control capital commitments. Once a steady flow of revenues has been established, make decisions on investment in additional production facilities, development wells and infrastructure in order to increase Shaikan production in line with the approved  Shaikan Field Development Plan

·          Continue to review options regarding the Company’s 20% working interest in the Akri-Bijeel Block and explore other funding options available

·          Complete the appraisal of the Sheikh Adi discovery, submit the appraisal report and make a decision regarding early production and development

Simon Murray, Non-Executive Chairman of Gulf Keystone, said:

Despite the recent security crisis in Iraq, which clearly affected the lives of many people in the Kurdistan Region and refugees from elsewhere in Iraq, I strongly believe that Gulf Keystone’s footprint as one of the key oil producers in this strategically important area is assured. With the continued support of the Ministry of Natural Resources, we are positive about increasing our production to the stated goal of 40,000 bopd, receiving payment for all entitlement barrels produced to date and entering a new phase of value generation.”

John Gerstenlauer, Chief Executive Officer of Gulf Keystone, commented:

“Our operations in the Kurdistan Region, where we have been present since 2007, are progressing well with the two existing Shaikan production facilities producing in the range of 20,000 to 25,000 bopd and crude oil export deliveries continuing essentially uninterrupted since late November 2013 to date. We are currently discussing with our hosts and stakeholders in the Kurdistan Region the plan for monetizing all past and future Shaikan production through achieving a stable payment cycle to progress in line with the approved Shaikan Field Development Plan.”

Posted in Oil & GasComments Off

Gulf Keystone CEO and Directors Resign

Gulf Keystone CEO and Directors Resign

By John Lee.

Gulf Keystone Petroleum announced this morning that Non-Executive Director and Deputy Chairman Jeremy Asher and Non-Executive Director John Bell “have ceased to be Directors in accordance with the Company’s bye-laws”.

The Company will restart its previously announced search process, with the assistance of Odgers Berndtson, for two new independent non-executive directors, and a further announcement on that process will be made in due course.

The Company also announced that Todd Kozel (pictured) will retire from his current role of CEO at the Company’s upcoming Annual General Meeting on 17 July 2014 and that, subject to Mr. Kozel’s re-election to the Board of Directors by shareholders, he will take up a new role of Executive Director. A search for Mr Kozel’s replacement is underway with the assistance of an international executive search firm and potential candidates have been identified.

Hours later, the company said that Non-Executive Director Thomas Shull had resigned from the Board.

Simon Murray, Gulf Keystone’s Non-Executive Chairman commented:

The Company is strongly positioned to continue the successful development of our assets in close cooperation with our partners MOL and the Kurdistan Regional Government.

“We have already begun the process of bringing in additional top-quality talent at both the Executive and Non-Executive level to help take the Company through the next stage of its development.

Shares in the company closed down 2 percent on Wednesday.

(Sources: GKP, Yahoo!)

Posted in Oil & GasComments Off

Gulf Keystone Up on Shaikan Update

Gulf Keystone Up on Shaikan Update

By John Lee.

Gulf Keystone Petroleum (GKP) has given an update on its production operations at Shaikan in Iraqi Kurdistan, its key producing asset. The company’s shares closed up 1.9 percent on Friday.

Production

  • Development plans to increase Shaikan production capacity to 40,000 gross barrels of oil per day (“bopd”) by year-end 2014 are on track
  • Shaikan PF-1 production continues at stable rates of 16,000 gross bopd from three wells, Shaikan-1, -3 and -4 and will increase to 20,000 gross bopd later in 2014
  • Shaikan PF-2 has been fully commissioned and production operations commenced from two wells, Shaikan-5 and -2
  • Shaikan-5 is producing at an average rate of 5,000 gross bopd, having achieved maximum daily rate to date of over 8,000 gross bopd
  • Shaikan-2 is expected to contribute additional production in the near future, having already achieved maximum daily rate to date of nearly 3,000 gross bopd
  • To boost production rates and provide spare well capacity, further wells will come online in 2014, including Shaikan-7, -8 and -10, and a work-over of Shaikan-1 and -3 will be carried out
  • Two additional production wells, Shaikan-9 and -11 are planned to be drilled later in 2014

Sales

  • Trucking operations from PF-1 continue and PF-2 production is being processed and flowed into two storage tanks at the facility with trucking operations from PF-2 anticipated to commence by the end of June
  • The majority of Shaikan production is being trucked to the Turkish port of Dortyol and sold to the international market, while some sales into the domestic market continue
  • Eight cargoes totalling approximately 1.85 million gross barrels of Shaikan crude have been sold to the international market to date
  • In June to date, the Company received its second and third payments of US$6.85 million and US$6.88 million respectively for the Shaikan crude oil export sales, as well as a further payment of US$1.5 million for the domestic sales

Todd Kozel (pictured), Gulf Keystone’s Chief Executive Officer commented:

Our operations in the Kurdistan Region of Iraq are progressing in line with our previous guidance, whilst we remain alert to the current security situation in Iraq, which has recently escalated outside the Kurdistan Region.

“We projected that Gulf Keystone would reach 20,000 gross bopd of production by the end of Q2 2014 and, with the combined production from PF-1 and PF-2, we are now very much on schedule. On 4 June, Shaikan cumulative production reached our record maximum daily rate to date of 25,000 gross bopd. We look forward to exiting 2014 with 40,000 gross bopd of production.

“Our crude oil export sales have now surpassed our historic sales into the domestic market, and our revenues are expected to increase significantly in the second half of 2014 with the establishment of a steady payment cycle for the Shaikan exports sales.

(Source: GKP)

Posted in Oil & Gas1 Comment

Gulf Keystone to Raise $250m Debt

Gulf Keystone to Raise $250m Debt

Gulf Keystone has announced that it has mandated Deutsche Bank and Pareto Securities to arrange a series of fixed income investor meetings in the US, Europe and Asia commencing 20 March 2014. A debt offering of up to US$250 million in accordance with Reg S/144A is expected to follow, subject to market conditions.

On 13 March 2014, Gulf Keystone released an Operational and Corporate Update and published the first third party audit of the Company’s reserves, contingent resources and prospective resources for its petroleum interests in the Kurdistan Region of Iraq comprising the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.

The Company continues to maintain current stable production and sales levels at an average of 10,000 barrels of oil per day (“bopd”) from the Company’s first Shaikan production facility (PF-1). In addition, Shaikan-4, the third production well, recently tied-in to PF-1, has been flowing at up to 6,000 bopd in the recent week.

The Company’s immediate focus remains on achieving its target of 40,000 bopd of production capacity from PF-1 and PF-2 in 2014, which will allow further expansion of export crude oil sales. The Company estimates that achieving this level of production capacity at Shaikan, as well as continuing planned expenditure at Sheikh Adi, Ber Bahr and Akri-Bijeel, will require capital expenditure of approximately US$210 million in 2014.

To complete this work programme, the Company expects to seek additional funding via a debt offering of up to US$250 million to enhance its existing cash resources, which totalled US$81.9 million as at 31 January 2014. Whilst there can be no certainty that a debt transaction will follow the Company’s investor meetings, any debt raised will support the completion of the Company’s move to 40,000 bopd of production capacity.

The Company expects to utilise cash generated from increasing oil sales, in addition to the funds remaining from the contemplated raising of up to US$250 million in debt financing, to initiate the next stage of the Shaikan project execution and increase production capacity from 40,000 bopd to 66,000 bopd by Q1 2016.

Posted in Banking & Finance, Oil & Gas2 Comments

Gulf Keystone Update

Gulf Keystone Update

Gulf Keystone Petroleum (GKP) has this morning provided an Operational and Corporate update, and released a third party audit of the Company’s reserves, contingent resources and prospective resources for its petroleum interests in the Kurdistan Region of Iraq.

Summary

The Company continues to maintain current stable production and sales levels of approximately 10,000 barrels of oil per day (“bopd”) from the Company’s first Shaikan production facility (“PF-1″) in the Kurdistan Region of Iraq, which is expected to increase in Q2 2014 as a result of the recently tied-in third production well, Shaikan-4, which is now flowing.

The second Shaikan production facility (“PF-2″) is being commissioned, with two wells (Shaikan-2 and Shaikan-5) already tied in and the first production from PF-2 expected in Q2 2014. The Company remains focused on achieving the target of 40,000 bopd of production capacity from PF-1 and PF-2 in 2014.

Since crude oil exports from the Shaikan field commenced in December 2013, in excess of 105,000 tonnes (690,000 barrels) of oil have been tendered and sold at international prices. The Company is expecting to receive payment, in line with the terms of the Shaikan Production Sharing Contract.

In order to move to the next stage of the Shaikan project execution, the Company is making progress in its discussions on the near term debt financing options.

Production and Development

Shaikan (75% working interest; Operator)

Stable production operations and sales from PF-1 continued in January, February and March 2014 at the level of approximately 10,000 bopd (gross). Total cumulative production from late 2010 to date from Shaikan has reached 2.1 million barrels.

Since crude oil exports from the Shaikan field commenced in December 2013, three cargoes totalling in excess of 105,000 tonnes (690,000 barrels) of oil have been delivered from PF-1. The fourth cargo of approximately 33,000 tonnes (215,000 barrels) of Shaikan crude is expected to be delivered later in March 2014.

Posted in Oil & GasComments Off

Gulf Keystone Starts Drilling at Shaikan-7

Gulf Keystone Starts Drilling at Shaikan-7

By John Lee.

Gulf Keystone has announced the commencement of the Company’s drilling campaign to explore deeper, yet untested horizons of the world class discovery at the Shaikan field, which the Company operates.

Shaikan-7, the first deep exploration well on the Shaikan block, is targeting the mid to lower Triassic and, potentially, Permian horizons, spudded late on Sunday 16 June 2013. The well is being drilled with the Weatherford Rig 319 (3000HP) close to the crest of the Shaikan structure, approximately 1 km east of the Shaikan-1 discovery well.

Shaikan-7 is being drilled to the lower Triassic to evaluate the potential for significant quantities of light oil and identify commerciality of the deeper Triassic reservoir. The well is then expected to penetrate the Permian, the deepest undrilled horizon to date on the Shaikan structure.

This vertical well is planned to reach a total depth below 4,500m in the Permian and the drilling is expected to take about 9 months.

Commenting on today’s announcement, John Gerstenlauer (pictured), Chief Operating Officer, said:

As we are about to commence implementation of our Field Development Plan for the Shaikan discovery and start Jurassic production from the newly constructed Shaikan production facility, the spudding of our first deep exploration well adds a new and exciting dimension to Gulf Keystone’s work programme in 2013.

“With Shaikan-7, we hope to confirm our expectations of major reservoirs beneath the deepest horizon drilled to date and add to what is already recognised as one of the world’s largest onshore conventional oil & gas developments.

(Source: GKP)

Posted in Oil & GasComments Off

Gulf Keystone Resumes Pumping in Kurdistan

Gulf Keystone Resumes Pumping in Kurdistan

By John Lee.

According to industry sources cited by reuters, Gulf Keystone has restarted production in Kurdistan after a gap of six months.

The company is now producing between 5,000 and 7,000 bpd for sale on the domestic market, and is developing its Shaikan field to raise output to around 40,000 bpd by the middle of next year.

GKP reportedly aims to produce as much as 150,000 bpd from Shaikan by 2015.

(Source: Reuters)

Posted in Oil & GasComments Off

Gulf Keystone Half-Year Report To June 2012

Gulf Keystone Half-Year Report To June 2012

Gulf Keystone, an independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq, today announces its results for the six months ended 30 June 2012.

HIGHLIGHTS

Operational – to 30 June 2012 and post period end

Shaikan (75% working interest; Operator) [Shaikan-2 is pictured.]

· 83% increase in gross oil-in-place numbers (PMean) for the Shaikan discovery with a new range of 12.4 billion (P90) to 15.0 billion (P10) barrels, with a mean value of 13.7 billion barrels, following independent evaluation by Dynamic Global Advisors (“DGA”) in July 2012
· Completion of the agreed five-well appraisal programme of the Shaikan field with the drilling of the Shaikan -4, -5 and -6 appraisal wells and testing of Shaikan -4 and -6
· Submission of the Declaration of Commercial Discovery for the Shaikan field with effect from
1 August 2012
· Spudding of Shaikan-8, the first post-appraisal well
· Ongoing work on the Shaikan Field Development Plan to be submitted within 180 days following the Declaration of Commercial Discovery
· Construction of two new early production facilities (PF -1 and -2, formerly known as EWT -1 and -2) is nearing completion, with the first unit due to become operational in January 2013 and the second by the end of the first quarter 2013
· Following completion of the preliminary design work, awaiting confirmation of the final route of the Shaikan export pipeline

Sheikh Adi (80% working interest; Operator)

· Sheikh Adi-2, the second exploration well on the block, spudded in May 2012 and has been drilled to a measured depth of 2,754 metres, with a plan to conduct a well testing programme across 7 target zones

Akri-Bijeel (20% working interest)

· Based on the Bekhme-1 exploration well’s log data, DGA calculated a range of 2.5 billion (P90) to 5.4 billion (P10) barrels of gross oil-in-place resources for the Aqra/Bekhme anticline
· Bijell-3 well, spudded in January 2012 to appraise the Bijell discovery of 2.4 billion (P50) barrels of gross oil-in-place, as calculated by the operator of the block. The well is currently drilling at a measured depth of 4,974 metres and, given good preliminary results of the logs and cores, will be followed by a well testing programme
· An early production facility for the Bijell discovery is being constructed to be installed by the end of 2012
· Bakrman-1 exploration well spudded in May 2012 and is currently approaching the planned 7 inch casing point at 3,637 metres and, given good preliminary results of the logs and cores, will be followed by a well testing programme
· Gulak-1 exploration well spudded in July 2012 and is currently drilling in the upper Jurassic below a measured depth of 1,600 metres

Ber Bahr (40% working interest)

· Ber Bahr-1, the first exploration well on the block, was drilled to a total depth (“TD”) of 3,930 metres and encountered a 300 metres oil column in the Jurassic. The well has been temporarily suspended while a work over rig is moved to the location to conduct a further well test with results expected in the fourth quarter 2012

Financial – as at 30 June 2012

· Loss after tax: $31.4 million (1H11: $10.3 million)
· Loss per share: 3.68 cents (1H11: 1.37 cents)
· Cash, cash equivalents and liquid investments of $136.9 million as at 30 June 2012 (30 June 2011: $137.6 million; 31 December 2011: $237.6 million)

Corporate development

· The Nominations Committee of the Board was formed in February 2012 (Lord Guthrie, Chairman) and the Remuneration and Appointments Committee was renamed the Remuneration Committee (Mehdi Varzi, Chairman)
· Lord Truscott retired by rotation from his position as the Company’s Non-Executive Director
· Mr Adnan Samarrai retired from his position as the Company’s Country Manager moving to a senior position within the Ministry of Natural Resources of the Kurdistan Region of Iraq. Mr Umur Eminkahyagil, previously Development and Production Manager, has been appointed the Company’s Country Manager in the Kurdistan Region of Iraq

OUTLOOK

· Complete and submit the Shaikan Field Development Plan by the end of January 2013, select development concept, and move to the large-scale staged development in 2013 with the goal of achieving 150,000 bopd by 2015 and full plateau production thereafter
· Commission the two Shaikan early production facilities to increase production to 30,000 – 40,000 bopd by mid-2013
· Confirm the final route and make a decision on the construction of an export pipeline to connect Shaikan’s increasing production to international markets
· Explore undrilled horizons in the Shaikan block, with the Shaikan-7 well targeting the deeper Triassic and the Permian
· Continue aggressive exploration and appraisal of the Akri-Bijeel, Sheikh Adi and Ber Bahr blocks to prove up resource base
· Evaluate the ongoing process of the sale of the Company’s 20% interest in the Akri-Bijeel block, taking into consideration forthcoming results of the three wells currently being drilled and planned early production from the Bijell discovery
· Successfully remove the uncertainty caused by the claims asserted by Excalibur
· Move from AIM to the premium segment of the Official List of the London Stock Exchange as part of establishing the Company as one of the major independent exploration and production players listed on the London Stock Exchange

Todd F Kozel, Executive Chairman and CEO of Gulf Keystone, commented:

“As an independent explorer and operator in the Kurdistan Region of Iraq, we are proud of our outstanding operating record to date with 15 wells drilled or currently being drilled across the four blocks and ambitious targets consistently being met. Since mid-July, we have announced another major upgrade of Shaikan’s gross oil-in-place volumes following independent evaluation, completed a very successful appraisal programme of this world-class discovery and declared the field commercial. Gulf Keystone is now in transition from the exploration and appraisal phase to the large-scale staged development and production of the Shaikan field, which will be both challenging and exciting”.

Following the release of Gulf Keystone’s results for the six months ended 30 June 2012, the management will be hosting a meeting with equity analysts. For details contact Pelham Bell Pottinger.

Copies of the presentation will be available on the Company’s website at www.gulfkeystone.com from 10.00 a.m. (UK time).

Enquiries:

Gulf Keystone Petroleum:
+44 (0) 20 7514 1400
Todd Kozel, Executive Chairman and
Chief Executive Officer

Ewen Ainsworth, Finance Director

Strand Hanson Limited

+44 (0) 20 7409 3494
Simon Raggett / Rory Murphy / James Harris

Mirabaud Securities LLP

+44 (0) 20 7878 3362
Peter Krens

Pelham Bell Pottinger

+44 (0) 20 7861 3232
Mark Antelme / Henry Lerwill

or visit: www.gulfkeystone.com

John Gerstenlauer, the Company’s Chief Operating Officer, who has 33 years of relevant experience within the sector and meets the criteria of a qualified person under the AIM note for mining, oil and gas companies, has reviewed and approved the technical information contained in this announcement. Mr. Gerstenlauer is a member of the Society of Petroleum Engineers.

Posted in Oil & GasComments Off

IBN Newsletter 'FREE Weekly Subscription'

Advertise with IBN