REG-Gulf Keystone Petroleum Ltd Operational & Corporate Update

Gulf Keystone PetroleumAnnouncement

Today 07:00

============

   Gulf Keystone Petroleum Ltd (GKP)
   Operational & Corporate Update

   10-Dec-2025 / 07:00 GMT/BST

   ══════════════════════════════════════════════════════════════════════════

                                        

                                        

   10 December 2025

                                        

                                        

                    Gulf Keystone Petroleum Ltd. (LSE: GKP)

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

                                        

                         Operational & Corporate Update

                                        

    

   Gulf  Keystone,  a  leading  independent  operator  and  producer  in  the
   Kurdistan Region of Iraq (“Kurdistan”), today provides an operational  and
   corporate update.

    

    

   Jon Harris, Gulf Keystone’s Chief Executive Officer, said:

   “2025 has been  a milestone year  for the Company  after pipeline  exports
   from the Shaikan Field were successfully restarted in September  following
   a hiatus of over two and a half years. Liftings allocated to Gulf Keystone
   and other IOCs commenced in November  and we are pleased to have  recently
   received our first payment. The process as outlined in the interim exports
   agreements is  working  and  we look  forward  to  a return  to  full  PSC
   entitlement  at   international   prices   following   the   international
   independent consultant’s review.

   We are on  track to  meet our production,  capital and  cost guidance  for
   2025. Strong operational and financial performance in the year has enabled
   us to  safely  advance key  projects  while distributing  $50  million  of
   dividends to shareholders.  Cumulative production from  the Shaikan  Field
   recently surpassed 150 million barrels, underlining the scale and  quality
   of the  asset.  Looking  ahead to  2026,  we  are expecting  a  base  work
   programme focused  on the  progression of  current projects.  We are  also
   embedding optionality  to restart  drilling and  review disciplined  field
   development, contingent on  consistent exports  payments at  international
   prices. We are excited about  a potentially transformational year for  the
   Company and remain focused on executing for our shareholders.”

    

   Operational

     • Strong safety  performance, with  zero Lost  Time Incidents  for  over
       1,050 days
     • Gross average production of c.41,400 bopd in 2025 year to date (as  at
       8 December  2025), in  line  with tightened  2025 annual  guidance  of
       40,000 - 42,000 bopd

          ◦ Smooth transition from trucking sales to pipeline exports via the
            Iraq-Türkiye Pipeline on 27 September 2025, with volumes quickly
            ramped up towards full well capacity
          ◦ Gross average production in December to date of c.44,000 bopd

     • Continued execution of the 2025 work programme:

          ◦ Ongoing well workover programme expected to lead to incremental
            increases to production rates in Q1 2026 once two wells are
            brought back online
          ◦ Further progression of safety upgrades at PF-2, with equipment
            tie-ins expected as part of a planned plant shut-down of around
            three weeks in 2026
          ◦ PF-2 water handling installation on track for commissioning at
            the beginning of 2027, with engineering design work well advanced

    

   Financial

    

     • First payment  received for  export  sales following  commencement  in
       November of  monthly liftings  of Kurdistan  crude allocated  to  Gulf
       Keystone and other International Oil Companies (“IOCs”)

          ◦ Average realised prices for cash received to date equate to
            c.$30/bbl, in line with the signed interim exports agreements and
            representing an improvement to local sales
          ◦ Expect future payments for export sales within 30 days of
            liftings
          ◦ The Company is accruing a receivable balance for exports sales
            under the interim agreements, reflecting the transition from
            pre-paid local sales and the differential to international prices

     • $50 million  returned  to  shareholders in  2025  through  semi-annual
       dividends in April and September
     • Cash balance of $75 million as at 9 December 2025

    

    

   Outlook

    

     • On track  to  meet  tightened 2025  gross  annual  average  production
       guidance of 40,000 - 42,000 bopd
     • Confirmed 2025 annual  guidance for net  capital expenditure  ($30-$35
       million), operating  costs ($50-$55  million) and  other G&A  expenses
       (below $10 million)
     • The current interim  exports agreements  are expected  to be  extended
       into  next  year  while  a  review  by  an  international  independent
       consultant of IOC invoices and contractual costs takes place

          ◦ A reconciliation to full PSC entitlement at international prices
            and the negotiation of long term exports agreements continue to
            be anticipated on completion of the review
          ◦ The Company is progressing its negotiations with the Kurdistan
            Regional Government (“KRG”) regarding a number of historical
            Shaikan commercial matters, including the settlement of past oil
            sales arrears and other KRG-related assets and liabilities, and
            will provide an update in due course

     • Guidance for  2026 will  be  provided in  an Operational  &  Corporate
       Update announcement  in  January  2026, with  a  base  work  programme
       expected to focus on the progression of current projects:

          ◦ Enhancing the safety and reliability of the production facilities
          ◦ Maintaining the capacity of existing wells through interventions
            and workovers
          ◦ Installing water handling facilities at PF-2 to drive incremental
            production growth and reduce reservoir risk from the beginning of
            2027

     • The Company will embed  optionality in its  work programme to  restart
       drilling and  review  disciplined  field  development,  contingent  on
       consistent exports payments and a return to international prices
     • Gulf Keystone continues to consider a potential listing of its  shares
       on the Euronext Growth Oslo, subject to favourable market conditions

    

    

    

   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.

   ══════════════════════════════════════════════════════════════════════════

   Dissemination of a Regulatory Announcement, transmitted by  5 EQS Group.
   The issuer is solely responsible for the content of this announcement.

   View original content:  6 EQS News

   ══════════════════════════════════════════════════════════════════════════

   ISIN:          BMG4209G2077
   Category Code: MSCL
   TIDM:          GKP
   LEI Code:      213800QTAQOSSTNTPO15
   Sequence No.:  410834
   EQS News ID:   2242802


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

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=2242802&site_id=refinitiv~~~456f380e-074c-434c-ab61-d8ca972fa0de&application_name=news
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=6965f2bb1ddcf50ad2dd09b21a93cfc7&application_id=2242802&site_id=refinitiv~~~456f380e-074c-434c-ab61-d8ca972fa0de&application_name=news
   5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f5d50dc7e8798b6eb177f7955e598e60&application_id=2242802&site_id=refinitiv~~~456f380e-074c-434c-ab61-d8ca972fa0de&application_name=news
   6. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=c27b1c08efca5f4189af647dd369c0ed&application_id=2242802&site_id=refinitiv~~~456f380e-074c-434c-ab61-d8ca972fa0de&application_name=news


============