GKP Trims Losses

Corporate developments

• Keith Lough was appointed Non-Executive Chairman in July 2016.
• The Board was strengthened by the appointments of David H Thomas and Garrett Soden, Non-Executive Directors in October 2016.
• The Management team was reinforced with the appointment of Stuart Catterall as Chief Operating Officer in January 2017.
• The Ber Bahr Block is in the process of relinquishment.

Outlook

• The Company is progressing in its ongoing discussions with the MNR regarding commercial and contractual conditions, in particular those around regular payments conforming to the Production Sharing Contract ("PSC"), and crude marketing arrangements. Subject to a satisfactory resolution to these points, which we anticipate securing around mid-year 2017, and partner approvals, we look forward to making further investments to maintain plateau production at the nameplate capacity of 40,000 bopd with a view to increasing to 55,000 bopd as soon as possible.
• The Company is funded for the estimated capital expenditure of $58-68 million for the 40,000 bopd stabilisation case and a further $25-45 million for the increase to 55,000 bopd (cost estimates include 25% contingency), and work continues on optimisation of these programmes.

Jón Ferrier (pictured), Gulf Keystone's Chief Executive Officer, said:

"We are strongly encouraged by the stable performance of Shaikan in-line with expectations and I am pleased to report achieving average gross production for 2016 at 34,794 barrels of oil per day at the upper-end of our 31,000-35,000 bopd guidance, while over the first quarter of 2017 we averaged 36,293 bopd. 

"We are cash flow positive with a healthy current cash balance of $112.7 million as at 5 April 2017, so we are primed for future development.  Since September 2015, we have received 16 payments from the MNR for Shaikan exports.

"To reiterate the Group's position; we have a field which continues to perform predictably, a revitalised team, and a healthy balance sheet, with which we stand ready to further invest in the Shaikan Field and grow shareholder value."

(Source: GKP)