Gulf Keystone Petroleum Ltd. Operational and Corporate Update (3834S)
March 11 2019 - 3:00AM
UK Regulatory
TIDMGKP
RNS Number : 3834S
Gulf Keystone Petroleum Ltd.
11 March 2019
11 March 2019
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Operational and Corporate Update
Gulf Keystone Petroleum, a leading independent operator and
producer in the Kurdistan Region of Iraq ("Kurdistan" or "Kurdistan
Region"), is pleased to provide an operational and corporate
update.
Operational
-- Operational activity continues at the Shaikan Field to
complete the debottlenecking programme in 2019, in order to achieve
the near-term production target of 55,000 bopd in Q1 2020
-- Progress is continuing with the export pipeline from PF-1 to
the main export pipeline, which remains on schedule to become
operational mid-year, at which point trucking of crude oil will be
eliminated
-- The SH-1 workover to replace the existing tubing with larger
bore tubing, has now been successfully concluded. The result was
positive with an increase in production from the well of
approximately 50% to over 6,500 bopd
-- The IOT Rig 1 has been demobilised. It will now complete a
short workover for another operator nearby before returning to
Shaikan for the remaining workovers in the 55,000 bopd expansion
programme. This will include the SH-3 tubing change-out, along with
installation of Electric Submersible Pumps ("ESPs") in wells SH-5,
SH-10 and SH-11
-- DQE's Rig 40 is currently being prepared ahead of the
imminent Jurassic drilling campaign, which remains on schedule to
be mobilised for the SH-H well later this month
Corporate
-- A renewal of the crude oil sales agreement has been signed
between Gulf Keystone Petroleum International Ltd and the Kurdistan
Regional Government ("KRG")
o The KRG will purchase Shaikan crude oil directly injected at
PF-2 into the Atrush export pipeline at the monthly average Dated
Brent oil price minus a total discount of c.$21 per barrel for
crude
o Until the PF-1 pipeline is completed, the KRG will continue to
purchase crude oil delivered by truck at a discount of c.$22 per
barrel
o The above discounts account for quality, domestic and
international transportation costs
o The agreement is effective from 1 January 2019 until 31
December 2020
-- The Company has received final clearance from Sonatrach in
relation to the Ferkane Permit (Block 126). This officially marks
Gulf Keystone's exit from its Algerian operations.
o This positive development will allow the Company to release
$10 million of past liabilities
Outlook
-- Despite Q1 production having been affected by SH-1 being
offline for the workover, and the export system being shut-down for
maintenance for a week earlier this month, the Company maintains
its 2019 gross average production guidance in the range of 32,000 -
38,000 bopd
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
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 and the
operator of the Shaikan Field with current production capacity of
40,000 barrels of oil per day. 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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