TIDMGKP
RNS Number : 9637C
Gulf Keystone Petroleum Ltd.
21 June 2019
21 June 2019
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Operational and Corporate Update
Significant operational activity
Ahead of the Company's Annual General Meeting ("AGM"), which
will be held today, Gulf Keystone is providing an operational and
corporate update.
Operational
-- Workovers on SH-1 and SH-3 have now been completed, resulting
in the anticipated material production uplift at both wells.
Production from SH-1 has increased by 105% to 7,800 bopd and SH-3
by 40% to 6,200 bopd.
-- The SH-12 well (formerly called SH-H) was spudded on 7 June
with DQE's Rig 40, signalling the commencement of the Company's
drilling campaign; a major milestone for Gulf Keystone.
-- The next well, forecasted to spud in Q4 2019, will be SH-9
which aims to assess the feasibility of gas reinjection into the
Jurassic formation, rather than the originally planned Jurassic
production well.
-- The workovers to install Electric Submersible Pumps ("ESP") will take place in Q4 2019.
-- As part of the 2019 work-programme, PF-1 was shut down on 10
June for planned maintenance and the installation of equipment
required for the 55,000 bopd de-bottlenecking project. The facility
is scheduled to be offline for approximately 15-20 days.
-- The installation of the PF-1 export pipeline infrastructure
continues. The pipeline is now installed, and export pumps and the
associated controls are currently being fitted. The pipeline is
expected to be operational in Q3 2019.
-- Average gross production of 29,993 barrels of oil per day
("bopd") achieved to date in 2019 with production levels of 38,100
bopd attained prior to the PF-1 shut down.
-- Full year production guidance remains unchanged, although due
to changes in the drilling schedule average gross production in
2019 is currently expected to be at the lower end of the 32,000 -
38,000 bopd guidance.
-- As a result of the revised timeframe, the 55,000 bopd
production target is now expected to be achieved in Q2 2020, as
opposed to previous guidance of Q1 2020.
Corporate
-- At the request of the Ministry of Natural Resources ("MNR"),
GKP and its partner MOL re-submitted a revised Field Development
Plan ("FDP") on 23 May 2019 to address additional MNR requests on
gas management. The FDP is currently under review by the MNR.
-- Cash balance of $290 million as at 20 June 2019. The Company
remains fully funded for all phases of the Shaikan expansion
programme.
-- As part of the Company's dividend policy, and subject to
approval at today's AGM, a $50 million dividend will be paid,
comprising an ordinary annual dividend of $25 million and a special
dividend of $25 million, to be paid in 2019.
-- The Company also intends to initiate a share repurchase
programme subject to shareholder approval at today's AGM.
Commenting, Jón Ferrier, CEO, said:
"Operational activity has intensified and good progress is being
made across all fronts of our Shaikan expansion programme,
including investment into the 75,000 bopd expansion and the gas
re-injection project. We are pleased to have started the drilling
campaign, in addition to seeing promising results with the
workovers drilled at SH-1 and SH-3, both of which have increased in
output significantly, and all of which serve to achieve our near
term production targets. Furthermore, we look forward to bringing
our new export pipeline into service later in the year eliminating
the need for trucking and reducing HSSE exposure."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Celicourt Communications: +44 (0) 20 7520 9266
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent
operator and producer in the Kurdistan Region of Iraq. Further
information on Gulf Keystone is available on its website
www.gulfkeystone.com
Disclaimer
This announcement contains certain forward-looking statements
that are subject to the risks and uncertainties associated with the
oil & gas exploration and production business. These statements
are made by the Company and its Directors in good faith based on
the information available to them up to the time of their approval
of this announcement but such statements should be treated with
caution due to inherent risks and uncertainties, including both
economic and business factors and/or factors beyond the Company's
control or within the Company's control where, for example, the
Company decides on a change of plan or strategy. This announcement
has been prepared solely to provide additional information to
shareholders to assess the Group's strategies and the potential for
those strategies to succeed. This announcement should not be relied
on by any other party or for any other purpose.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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