Gulf Keystone Losses Widen

Gulf Keystone Petroleum (GKP) this morning announced its results for the year ended 31 December 2014.

HIGHLIGHTS

Operational

• 2014 gross production of 6,484,391 barrels of oil (2013: 496,921 barrels of oil) with significant growth expected in 2015
• Gulf Keystone's operations in the Kurdistan Region remained secure with production operations and crude oil export deliveries from the Shaikan field uninterrupted throughout 2014
• The first production milestone of 40,000 barrels of oil per day ("bopd") reached in December 2014 following a gradual ramp-up during the year
• Current production in excess of 37,000 bopd is being delivered against the pre-payment of US$ 26 million gross (US$20.8 million net to Gulf Keystone) received for Shaikan crude oil sales on 25 February 2015, with further payments of a similar nature anticipated

Financial - as at 31 December 2014

• Revenues of US$38.6 million achieved (FY13: US$6.7 million); additional revenue in the region of US$100 million owed but not yet recognised for crude oil export sales
• Loss after tax of US$248.2 million (FY13: US$32.0 million)
• Net proceeds of US$240 million raised from the issue of debt securities and associated warrants in April 2014

Financial - post period end

• US$26 million gross (US$20.8 million net) received as pre-payment for Shaikan crude oil sales in February 2015
• Successful placing of 85.9 million shares on 31 March 2015, raising gross proceeds for the Company of US$40 million
• Discussions ongoing with a number of parties in relation to possible asset transactions or corporate sale
• Book Equity Ratio Put Option successfully removed from the Trust Deed and Conditions of the US$250 million 13.0 per cent Guaranteed Notes due 2017 at the noteholder meeting on 7 April 2015
• Cash balance at 8 April 2015 of US$84.7 million (31 Dec 2014: US$87.8 million) excluding recent share placing proceeds