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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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