By John Lee.
Shares in Gulf Keystone Petroleum (GKP) have fallen 6 percent on Thursday amid concerns about the scale of spending needed to develop the company's oilfields.
Following the publication of its half-yearly report (shown in full below), Bloomberg quotes Charlie Sharp, an analyst at Canaccord Genuity Securities, as saying:
"This marks the end of the exuberance around the stock after its court victory and the beginning of the next phase ... The question is how they get from where they will be in early 2014, at about 40,000 barrels a day, to their next big target."
GKP's results for the six months ended 30 June 2013 were as follows:
Operational - to 30 June 2013 and post period end
Shaikan Block (75% working interest; Operator)
- Shaikan Field Development Plan ("Shaikan FDP") was approved by the Ministry of Natural Resources of the Kurdistan Regional Government in June 2013
- The first Shaikan production facility ("Shaikan PF-1"), capable of producing 20,000 barrels of oil per day ("bopd"), was fully commissioned in July
- Shaikan commercial production began in mid-July, with 12,400 bopd achieved by early September
- Gross production from Shaikan PF-1 from 24 July 2013 to 1 September 2013 totalled 183,000 barrels, with 179,063 barrels sold into the domestic market
- Construction of the second Shaikan production facility (PF-2), capable of producing 20,000 bopd, is ongoing; its mechanical completion expected in October 2013, followed by production operations by the end of 2013
- Project initiated for gas compressing equipment required to move beyond the near-tem production target of 40,000 bopd to the initial Shaikan FDP's target of 100,000 bopd
- Drilling of Shaikan-10, the first development well, spudded in July 2013 and is ongoing
- Drilling of Shaikan-7, the first deep exploration well, targeting previously undrilled mid to lower Triassic and Permian horizons, spudded in June 2013 and is ongoing; potential to add between 1 and 5 billion barrels of gross oil-in-place to already discovered resources
- Significant progress made on the development of the regional independent export infrastructure, expected to be completed by the end of 2013