Information  X 
Enter a valid email address

Gulf Keystone Petrol (GKP)

  Print   

Tuesday 16 February, 2021

Gulf Keystone Petrol

Competent Person's Report Update

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 resources1 of 798 MMstb2 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 resources1, 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 index3 of c.15 years and a gross 2P reserves life index3 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 2020


1P

2P


2C 1


2P+2C 2

Formation (MMstb)

  Reserves


Resources



Jurassic


240

505


80


585

Triassic


-

-


157


157

Cretaceous


-

-


56


56

Total - Gross


240

505


293


798

 

31 December 2019


1P

2P


2C 1


2P+2C 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:

 

 


1P

2P


2C 1


2P+2C 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 WI4 share of reserves and resources at 31 December 2020 were:

 



1P

2P


2C 1


2P+2C 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.

 

 

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 [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
STRSFFEFIEFSEDE

a d v e r t i s e m e n t