Gulf Keystone boss “strongly encouraged” by Shaikan performance
08:57 06 Apr 2017
Having reset its finances, with a dilutive debt-for-equity swap, the company is now funded for the next programme of work.
Oil workers on a well
A new phase of work will lift output to 40,000 bopd, then to 55,000 bopd
Gulf Keystone Petroleum Ltd (LON:GKP) boss Jón Ferrier said he is “strongly encouraged” by the stable performance of the Shaikan field, which is in-line with expectations.
In the company’s results, for 2016, it was revealed that production from Shaikan averaged 34,794 barrels of oil per day, which was at the upper end of the 31,000 to 35,000 bopd guidance for the year.
Having reset its finances, with a dilutive debt-for-equity swap, the company is now funded for the next programme of work – which first aims to stabilise output at around 40,000 bopd, before growing to 55,000 bopd.
The first phase of the programme has an estimated US$58-68mln capital cost, while the next stage is slated at US$25-45mln.
GKP reported a 126% rise in revenue to US$194.4mln, up from US$86.2mln, which included US$72.6mln which offsets against payables due from the Kurdistan authorities. Losses narrowed significantly to US$17.4mln, from US$214mln.
“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,” Ferrier said.
“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."