REG-Gulf Keystone Petroleum Ltd Operational & Corporate Update

Gulf Keystone PetroleumAnnouncement

Today 07:00

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   Gulf Keystone Petroleum Ltd (GKP)
   Operational & Corporate Update

   22-Jan-2026 / 07:00 GMT/BST

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   22 January 2026

                                        

                                        

                    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. The information contained  in this announcement has  not
   been audited and may be subject to further review.

    

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

   “2025 was a strong year  for GKP, with production  towards the top end  of
   our tightened guidance  range. Capex  and cost  discipline helped  deliver
   material free cash  flow generation underpinning  $50 million of  dividend
   payments. Kurdistan  pipeline exports  restarted in  September 2025  after
   over two  and  half years  and  regular exports  liftings  and  associated
   payments, which commenced in Q4 2025, have continued into 2026 following a
   smooth extension of the interim agreements.

   Looking ahead, we  expect 2026 to  be a pivotal  year. Assuming  continued
   consistent exports  payments  and a  return  to international  prices,  we
   intend to swiftly resume drilling later in the year. This will position us
   to organically  grow production  in 2027  as additional  volumes from  the
   installation of water  handling are also  expected to come  on stream.  We
   will remain  disciplined, coupling  incremental capital  investments  with
   shareholder  distributions   to   continue  delivering   value   for   all
   stakeholders.”

   Operational

     • 2025 gross average  production of  41,560 bopd, towards  upper end  of
       tightened annual  guidance range  of 40,000  – 42,000  bopd and  a  2%
       increase versus the prior year (2024: 40,689 bopd)

          ◦ Resilient performance despite trucking and security related
            interruptions from June to August accounting for losses of c.1.3
            million barrels, or c.3,500 bopd annualised
          ◦ Successful transition from trucking sales to pipeline exports via
            the Iraq-Türkiye Pipeline (“ITP”) on 27 September 2025, with
            volumes quickly ramped up towards full well capacity

     • 2026 year to 20 January gross average production of c.40,600 bopd

          ◦ Production expected to ramp up towards 44,000 bopd following the
            recent restart of a well post jet pump replacement and the
            completion of ongoing well workovers

     • Zero Lost Time  Incidents (“LTIs”)  for over three  years, with  c.5.3
       million working hours  since the last  LTI, underlining the  Company’s
       continued commitment to high standards of safety

    

   Financial

    

     • Total cash  collected  for  2025  crude  sales  of $122  million (2024
       revenue receipts: $144 million)

          ◦ $108 million proceeds from local sales during the first nine
            months of the year, paid in advance
          ◦ $14 million proceeds from export sales in September and October
            2025 received in December 2025
          ◦ Cash received for 2025 exports sales of c.$30/bbl, an increase
            relative to the average realised price of $28/bbl for 2025 local
            sales
          ◦ In addition to the above, the Company is accruing a receivable
            for exports sales under the interim agreements to account for the
            differential between realised prices for cash received to date
            and the expected reconciliation to international prices

     • 2025 capital expenditure and costs in line with annual guidance

          ◦ 2025 net capex of $34 million (2024: $18 million), primarily
            reflecting PF-2 safety upgrades, well workovers and initial
            expenditure on the installation of water handling facilities at
            PF-2
          ◦ 2025 operating costs of $53 million (2024: $52 million), with
            gross Opex per barrel of $4.3/bbl (2024: $4.4/bbl), primarily
            reflecting the slight increase in production
          ◦ 2025 other G&A expenses below $10 million (2024: $11 million)

     • $50 million returned  to  shareholders  in  2025  through  semi-annual
       dividend payments in April and September
     • 2025 year-end  cash  balance of $78  million (31  December  2024: $102
       million) and no debt

          ◦ Cash balance as at 21 January 2026 of $88 million which includes
            recent exports sales payments

   Outlook

     • Regular liftings and payments for International Oil Companies  (“IOC”)
       crude exports continue following the  recent extension of the  interim
       agreements to the end of March 2026

          ◦ International independent consultant appointed and progressing
            its review of IOC invoices and contractual costs, expected to be
            completed during the extended term of the interim agreements
          ◦ A reconciliation to full PSC entitlement at international prices
            and the negotiation of longer term exports agreements continue to
            be anticipated following the completion of the review
          ◦ The Company continues to advance 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

     • 2026 gross average production guidance of 37,000 to 41,000 bopd

          ◦ Reflects planned activity, including the estimated impact of the
            PF-2 shutdown later in 2026 of c.1,000 bopd annualised, and
            natural field declines in the absence of drilling

     • 2026 net capex guidance of $40-$50 million, reflecting work  programme
       focussed on protecting base production from existing wells,  upgrading
       the safety  and reliability  of the  facilities and  installing  water
       handling

          ◦ $5-$10 million: Ongoing well workover programme focussed on
            offsetting field declines
          ◦ $25-$30 million: Programme of facilities upgrades at both PF-1
            and PF-2 and recurring maintenance
          ◦ c.$10 million: Remaining upfront expenditure to install water
            handling at PF-2, targeting incremental gross production of 4,000
            – 8,000 bopd above the anticipated field baseline at the
            beginning of 2027

     • Preparations are underway to restart drilling later in 2026;  assuming
       consistent exports payments and a return to international prices,  the
       Company will proceed swiftly and update capex guidance as required
     • The Company expects 2026 net operating costs of $55-$60 million

          ◦ Primarily reflects higher local diesel costs following the
            restart of exports, increased usage of diesel in well artificial
            lift & exports pumps and facilities maintenance related to the
            planned PF-2 shutdown

     • Expect 2026 other G&A expenses of less than $10 million
     • The Company remains committed to  returning any potential excess  cash
       to shareholders via  semi-annual dividend  payments and  opportunistic
       share buybacks
     • Gulf Keystone continues  to actively consider  a potential listing  of
       its shares on the Euronext  Growth Oslo, subject to favourable  market
       conditions

    

   Investor presentation

    

   Gabriel  Papineau-Legris,  CFO,  will   be  presenting  today  at   Pareto
   Securities’ 21st  annual  E&P Independents  Conference.  The  presentation
   slides will be made available on the Company’s website:

    

    1 https://www.gulfkeystone.com/investors/presentations/ 

    

    

   Enquiries:

    

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

   & Corporate Communications               2 aclark@gulfkeystone.com

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

    

   or visit:  4 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  5 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  6 EQS Group.
   The issuer is solely responsible for the content of this announcement.

   View original content:  7 EQS News

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   ISIN:          BMG4209G2077
   Category Code: MSCL
   TIDM:          GKP
   LEI Code:      213800QTAQOSSTNTPO15
   Sequence No.:  415670
   EQS News ID:   2263998


    
   End of Announcement EQS News Service

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