GKP Shares Rally

Financial highlights

• Cash and cash equivalents at 25 August 2015 of US$63.9 million
• Revenues of US$30.1 million achieved for H1 2015 (1H14: US$18.7 million; FY14: US$38.6 million), an increase of 61% on H1 2014
• Loss after tax for H1 2015 of US$77.7 million (1H14: US$29.8 million; FY14: US$248.2 million)
• Unbooked revenues in the region of US$117 million from commencement of commercial production to 30 June 2015
• Total arrears net to Gulf Keystone of US$283 million as of 30 June 2015, including unbooked revenues and past costs due from the Shaikan Third Party and Government Options, subject to audit
• Cash spend on capital items in H1 2015 US$28.8 million, a reduction of 74% compared with H1 2014
• Placing of 85.9 million shares, raising gross proceeds of US$40.7 million in March 2015
• Book Equity Ratio Put Option, a restrictive condition, successfully removed in April 2015 from the US$250 million 13.0 per cent Guaranteed Notes due 2017

Corporate developments

• An active search process to appoint a number of Non-Executive Directors to the Board continues, led by Andrew Simon, Non-Executive Chairman
• Management team strengthened with the appointment of Nadhim Zahawi as Chief Strategy Officer
• Further to the Strategic Update of 25 February 2015, discussions are ongoing with a number of parties in relation to possible asset transactions or corporate sale