TIDMGKP
RNS Number : 1820P
Gulf Keystone Petroleum Ltd.
16 February 2021
16 February 2021
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Updated Independent Reserves and Resources Evaluation
Competent Person's Report reaffirms the significant production
potential of the Shaikan Field
Gulf Keystone Petroleum, a leading independent operator and
producer in the Kurdistan Region of Iraq, is today providing a
Competent Person's Report ("CPR") update on the Shaikan Field in
which it has an 80% working interest ("WI"). The CPR, an
independent third-party evaluation of the Company's reserves and
resources as at 31 December 2020, was prepared by ERC Equipoise
("ERCE").
Jon Harris, Gulf Keystone's Chief Executive Officer, said:
"The updated CPR demonstrates the continuing long-term strong
performance of the Shaikan Field with gross 2P+2C reserves and
resources volumes in line with the 2016 CPR, after adjusting for
production over the period. Prior Company estimates are reaffirmed
with gross 2P+2C reserves and resources of c.800 MMstb at 31
December 2020, including over 500 MMstb of gross 2P reserves. We
have a deep understanding of the Shaikan Field that has produced
over 80 MMstb to date and are pleased that the latest CPR matches
our interpretation and understanding of the geological model,
underlining the considerable untapped potential of the field.
We had a strong start to the year in January, which saw GKP's
highest monthly average daily gross production of 44,405 bopd. As
conditions continue to improve, we look forward to resuming the
55,000 bopd expansion project and shareholder distributions."
Highlights
-- The CPR incorporates significant incremental information,
including an updated development plan, new wells, production data
and further technical analysis, since the last CPR was prepared by
ERCE in 2016.
-- Gross 2P reserves + 2C contingent resources(1) of 798
MMstb(2) at 31 December 2020 are consistent with volumes as at 31
December 2019, adjusted principally for 2020 production.
-- Gross 1P reserves increased to 240 MMstb, up 33% after adjusting for 2020 production.
-- Gross 2P Jurassic reserves were revised down marginally (2%)
to 505 MMstb, after adjusting for 2020 production.
-- Gross 2P Triassic and Cretaceous reserves of 47 MMstb were
reclassified to gross 2C contingent resources(1) , while the Field
Development Plan is progressed with the Ministry of Natural
Resources.
-- Shaikan continues to deliver stable production with average
gross production in January of 44,405 bopd, the highest monthly
average to date from the field.
-- The Shaikan Field has significant future production potential
with a gross 1P reserves life index(3) of c.15 years and a gross 2P
reserves life index(3) of over 31 years, assuming January 2021
production levels.
Gross reserves and resources based on the Company's estimates at
31 December 2019 and the CPR at 31 December 2020 were:
31 December 2P+2C
2020 1P 2P 2C (1) (2)
Formation (MMstb) Reserves Resources
-------------------- ----------------- ---------- ------
Jurassic 240 505 80 585
Triassic - - 157 157
Cretaceous - - 56 56
Total - Gross 240 505 293 798
-------------------- -------- ------- ---------- ------
31 December 2P+2C
2019 1P 2P 2C (1) (2)
Formation (MMstb) Reserves Resources
-------------------- ---------------------------- ------------ ------------
Jurassic 175 531 80 611
Triassic 18 44 106 150
Cretaceous 1 3 53 56
Total - Gross 194 578 239 817
-------------------- ------------- ------------- ------------ ------------
The reconciliation of changes in reserves and resources between
the Company's estimates at 31 December 2019 and the CPR at 31
Decemer 2020 is as follows:
2P+2C
1P 2P 2C (1) (2)
Gross (MMstb) Reserves Resources
-------------------- ------------------------ -------------- ------------
31 December
2019 194 578 239 817
Production (13) (13) - (13)
Reclassifications (19) (47) +47 -
Revisions +78 (13) +7 (6)
31 December
2020 240 505 293 798
-------------------- ----------- ----------- -------------- ------------
GKP's 80% net WI(4) share of reserves and resources at 31
December 2020 were:
2P+2C
1P 2P 2C (1) (2)
Formation (80% WI)
(MMstb) Reserves Resources
------------------------------- ------------------ ------------ ------------
Jurassic 192 404 64 468
Triassic - - 125 125
Cretaceous - - 45 45
Total - Net
WI 192 404 234 638
--------------------- -------------- ------------ ------------ ------------
1. Contingent resources volumes are classified as such because
there is technical and commercial risk involved with their
extraction. In particular, there may be a chance that accumulations
containing contingent resources will not achieve commercial
maturity. The 2C (best estimate) contingent resources presented are
not risked for chance of development.
2. Aggregated 2P+2C estimates should be used with caution as 2C
contingent resources are commercially less mature than the 2P
reserves.
3. Reserves life index is calculated as gross 1P reserves or
gross 2P reserves, as appropriate, divided by annualised January
2021 gross production.
4. Net working interest reserves and resources do not represent
the net entitlement resources under the terms of the PSC.
Enquiries:
Celicourt Communications: + 44(0) 20 8434 2754
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.
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