Gulf Keystone Petroleum: Half-Year Report

Gulf Keystone Petroleum (GKP) has announced its results for the six months ended 30 June 2016.

Operational highlights

Security situation and HSSE performance

  • All operations in the Kurdistan Region of Iraq remain safe and secure with no significant HSSE incidents during the period

Production and sales

  • Strong production performance resulted in gross production of 6.0 million barrels in the period to 30 June 2016 (H1 2015:4.7 million barrels), an increase of 28% on H1 2015
  • Average daily gross production rates for the period were 33,000 bopd. Production was restricted in February and March 2016 due to lack of export pipeline availability. Production rates were otherwise strong, averaging between 36,000-40,000 bopd. The Group remains on track to meet its annual gross production guidance of between 31,000-35,000 bopd
  • An updated Shaikan CPR was published on 31 August 2016 showing stable Proved plus Probable (2P) gross field oil Reserves of 622 MMstb  and 2C Contingent Resources of 239 MMstb, both as at 30 June 2016
  • All oil sales were made via the Kirkuk-Ceyhan export pipeline throughout the reporting period, ensuring higher realised prices, lower transportation costs and reduced HSSE exposure
  • The Group's improved liquidity is expected to allow the implementation of the Group's near-term investment plan to maintain gross production at 40,000 bopd with the potential to increase to 55,000 bopd subject to MOL and MNR approvals, the continuation of the regular payment cycle from the MNR and a commercially acceptable investment environment
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