Gulf Keystone Losses Widen

Outlook

  • Establish a regular  payment cycle for past and future Shaikan crude oil export sales
  • Finalise and implement a pipeline access solution for the Shaikan crude
  • Achieve stable Shaikan production rates of 40,000 bopd aiming to maintain a daily average of 36,000 bopd throughout 2015
  • Manage expenditure in a responsible and prudent manner, continuing to review and control capital commitments
  • Make decisions on investment in additional production facilities, development wells and infrastructure required to increase Shaikan production in line with the approved Shaikan Field Development Plan
  • Make a decision regarding early production and development of the Sheikh Adi discovery

Commenting on the Full Year results, Andrew Simon, Interim Non-Executive Chairman, said:

"2014 was a pivotal year for Gulf Keystone as we completed the critical transition from explorer to producer.

"We started the year with our first crude oil export sales and ended the year by achieving our objective of producing 40,000 barrels of oil per day from the Shaikan field, our flagship asset in the Kurdistan Region of Iraq.

"This was a significant achievement for an independent E&P company in a country in the midst of a conflict.

"We are committed to rebuilding shareholder value. All avenues for doing this are being considered, including expansion plans for Shaikan.

"As already announced, the Company is continuing to engage in discussions with interested parties in relation to possible asset transactions or a sale of the Company, as well as considering additional routes to secure further funding."

John Gerstenlauer, CEO, said:

"Hitting an important production milestone and achieving a year of regular crude oil export deliveries confirmed another step change year for our operational progress at Shaikan, verifying the presence of a robust international market for our production and demonstrating our commitment to meeting targets against a challenging geopolitical backdrop and low international oil prices.

Following a number of payments received for crude oil exports in 2014 and the most recent pre-payment of US$26 million in February 2015, the arrears amount for crude oil export sales has not increased significantly in the past six months and we believe that we are close to achieving a steady and stable payment cycle for present and future crude oil export sales."

(Sources: GKP)

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