REG-Gulf Keystone Petroleum Ltd Update on Shaikan Field local sales

Gulf Keystone PetroleumAnnouncement

25/09/2023 07:00

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   Gulf Keystone Petroleum Ltd (GKP)
   Update on Shaikan Field local sales

   25-Sep-2023 / 07:00 GMT/BST

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   25 September 2023

                                        

                                        

                    Gulf Keystone Petroleum Ltd. (LSE: GKP)

             (“Gulf Keystone”, “GKP”, “the Group” or “the Company”)

                                        

                      Update on Shaikan Field local sales

                                        

           Gross average sales in September to date of c.28,800 bopd

   At current volumes and prices, more than covering current monthly costs of
                                   $6 million

                                        

    

   Gulf  Keystone,  a  leading  independent  operator  and  producer  in  the
   Kurdistan Region of Iraq  (“Kurdistan”), is today  providing an update  on
   Shaikan Field local sales.

    

   Since closure of the export pipeline and subsequent commencement of  local
   sales on 19 July 2023, gross average monthly local sales of Shaikan  crude
   have steadily increased: c.4,900 bopd in July, c.17,200 bopd in August and
   c.28,800 bopd between  1-24 September. Realised  prices have continued  to
   average around $30/bbl, in line with local market pricing.

    

   Following  recent  agreements  with   buyers,  GKP  has  ceased   trucking
   operations and  is  injecting  all  crude  sales  into  the  pipeline  for
   transportation to a local refinery in Kurdistan. The Company is  receiving
   advance payments into its UK bank  account for its net entitlement of  36%
   of gross sales revenue.

    

   Current local sales volumes and realised prices enable GKP to more than
   cover its estimated monthly costs of around $6 million in H2 2023, while
   strengthening its financial position. The Company remains focused on
   preserving liquidity and continues to explore opportunities for further
   cost reductions.

    

   Gross average sales  are currently c.33,000  bopd and GKP  is striving  to
   increase sales volumes while prudently managing the start-up of wells that
   have been shut-in for several months  and avoid traces of water.  However,
   the continuity of local sales remains uncertain.

    

    

    

   Enquiries:

    

   Gulf Keystone:                          +44 (0) 20 7514 1400  
   Aaron Clark, Head of Investor Relations

   & Corporate Communications               1 aclark@gulfkeystone.com

    
   FTI Consulting                          +44 (0) 20 3727 1000
   Ben Brewerton
                                            2 GKP@fticonsulting.com
   Nick Hennis

    

   or visit:  3 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  4 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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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          BMG4209G2077
   Category Code: MSCH
   TIDM:          GKP
   LEI Code:      213800QTAQOSSTNTPO15
   Sequence No.:  273453
   EQS News ID:   1732943


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:aclark@gulfkeystone.com
   2. mailto:GKP@fticonsulting.com
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=8d526d3701dabe9a2ff9507b71394df8&application_id=1732943&site_id=reuters9&application_name=news
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=6965f2bb1ddcf50ad2dd09b21a93cfc7&application_id=1732943&site_id=reuters9&application_name=news


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