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Gulf Keystone Petrol (GKP)

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Friday 13 June, 2014

Gulf Keystone Petrol

Shaikan Production Update

RNS Number : 5375J
Gulf Keystone Petroleum Ltd.
13 June 2014
 



 

Not for release, publication or distribution, directly or indirectly, in whole or in part in or into the United States or any jurisdiction other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws or regulations of such jurisdiction.  This announcement (and the information contained herein) does not contain or constitute an offer to sell or the solicitation of an offer to purchase, nor shall there be any sale of securities in any jurisdiction where such offer, solicitation or sale would constitute a contravention of the relevant laws or regulations of such jurisdiction.

 

 

13 June 2014

Gulf Keystone Petroleum Ltd. (LSE: GKP)

 

Shaikan Production Update

 

Gulf Keystone Petroleum Limited, an exploration and production company with operations in the Kurdistan Region of Iraq is pleased to present an update on the Company's production operations at Shaikan, its key producing asset.  

 

Production

 

·      Development plans to increase Shaikan production capacity to 40,000 gross barrels of oil per day ("bopd") by year-end 2014 are on track

 

·      Shaikan PF-1 production continues at stable rates of 16,000 gross bopd from three wells, Shaikan-1, -3 and -4 and will increase to 20,000 gross bopd later in 2014

 

·      Shaikan PF-2 has been fully commissioned and production operations commenced from two wells, Shaikan-5 and -2

 

·      Shaikan-5 is producing at an average rate of 5,000 gross bopd, having achieved maximum daily rate to date of over 8,000 gross bopd

 

·      Shaikan-2 is expected to contribute additional production in the near future, having already achieved maximum daily rate to date of nearly 3,000 gross bopd

 

·      To boost production rates and provide spare well capacity, further wells will come online in 2014, including Shaikan-7, -8 and -10, and a work-over of Shaikan-1 and -3 will be carried out

 

·      Two additional production wells, Shaikan-9 and -11 are planned to be drilled later in 2014

 

Sales

 

·       Trucking operations from PF-1 continue and PF-2 production is being processed and flowed into two storage tanks at the facility with trucking operations from PF-2 anticipated to commence by the end of June 

 

·       The majority of Shaikan production is being trucked to the Turkish port of Dortyol and sold to the international market, while some sales into the domestic market continue

 

·       Eight cargoes totalling approximately 1.85 million gross barrels of Shaikan crude have been sold to the international market to date

 

·       In June to date, the Company received its second and third payments of US$6.85 million and US$6.88 million respectively for the Shaikan crude oil export sales, as well as a further payment of US$1.5 million for the domestic sales

 

Todd Kozel, Gulf Keystone's Chief Executive Officer commented:

"Our operations in the Kurdistan Region of Iraq are progressing in line with our previous guidance, whilst we remain alert to the current security situation in Iraq, which has recently escalated outside the Kurdistan Region. We projected that Gulf Keystone would reach 20,000 gross bopd of production by the end of Q2 2014 and, with the combined production from PF-1 and PF-2, we are now very much on schedule. On 4 June, Shaikan cumulative production reached our record maximum daily rate to date of 25,000 gross bopd. We look forward to exiting 2014 with 40,000 gross bopd of production.

 

Our crude oil export sales have now surpassed our historic sales into the domestic market, and our revenues are expected to increase significantly in the second half of 2014 with the establishment of a steady payment cycle for the Shaikan exports sales."

 

Enquiries:


Gulf Keystone Petroleum:

+44 (0) 20 7514 1400

Anastasia Vvedenskaya,
Head of Investor Relations


Press enquiries:


The Dilenschneider Group

+44 (0) 7795484387

Terence Franklin


 

or visit: www.gulfkeystone.com   

 

Notes to Editors:

·           Gulf Keystone Petroleum Ltd. (LSE: GKP) is an independent oil and gas exploration, development and production company focused on exploration in the Kurdistan Region of Iraq.

·           Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for four exploration blocks in Kurdistan, the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.

·           GKPI is the Operator of the Shaikan Block, which is a major commercial discovery, with a working interest of 75% and is partnered with Kalegran Ltd. (a 100% subsidiary of MOL Hungarian Oil and Gas plc.) and Texas Keystone Inc., which have working interests of 20% and 5% respectively.  Texas Keystone Inc. holds its interest in trust for Gulf Keystone, pending transfer of its interest to the Company.

·           Gulf Keystone is moving into the large-scale phased development of the Shaikan field targeting 100,000 bopd of production capacity during Phase 1 of the Shaikan Field Development Plan following its approval in June 2013.

 

 

Disclaimer

 

This announcement contains certain forward-looking statements.  These statements are made by the Company's 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 uncertainties, including both economic and business factors, underlying such forward-looking information. 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 communication and the information contained herein is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the company and its management, as well as financial statements. The company does not intend to register any portion of this offering in the United States or to conduct a public offering in the United States or any other jurisdiction. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the Company and its management, as well as financial statements. Copies of this communication are not being, and should not be, distributed in or sent into the United States.

 

This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended from time to time (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order or (iv) certified high net worth individuals and certified and self-certified sophisticated investors as described in Articles 48, 50, and 50A respectively of the Order or (v) persons to whom this communication may otherwise be lawfully communicated (all such persons together being referred to as relevant persons). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

 

This communication is distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (this Directive together with any implementing measures in any member state, the Prospectus Directive) only to those persons who are qualified investors for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person or qualified investor may act or rely on this document or any of its contents.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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