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(Alliance News) - Gulf Keystone Petroleum PLC is looking to significantly ramp up production in 2020, the company said on Tuesday.
Gulf Keystone said 2019 average gross production was 32,883 barrels of oil per day, meeting expectations, but noted output from Kurdistan's Shaikan field is currently around 40,000 barrels per day.
The 2019 production figure means a 4.2% rise in output from the year before.
Looking to 2020, as Shaikan continues to develop, Gulf Keystone has guided for average production of between 43,000 barrels and 48,000 barrels per day. By the third-quarter, it hopes output will reach 55,000 barrels a day.
"2019 saw Gulf Keystone continue to realise the benefits of the company's recent turnaround. In a year in which we returned significant value to shareholders, through both our maiden dividend and share buyback programmes, we also benefited from the increased operational tempo," said Chief Executive Jon Ferrier.
"This resulted in the first steps along the road to a significant production increase from Shaikan, and we are pleased to confirm today we achieved our original 2019 gross production guidance."
"Looking forward, the pace of the development of Shaikan continues with the drilling and investment in our facilities, in order to deliver our growth trajectory. With a robust balance sheet and confidence in regular payments, we expect to be fully funded for our work programme and continue to return value to shareholders," Ferrier added.
Regarding the buyback, Gulf Keystone will start the final USD10 million tranche of its existing USD25 million programme once the first USD15 million has been purchased. As of Monday, Gulf Keystone had bought back USD10.1 million.
This USD25 million buyback programme followed once of the same size which was completed in October.
Gulf Keystone said earlier in January operations in Kurdistan have been going on as normal, despite heightened tensions in the Middle East, specifically between the US and Iran. The firm has also been dealing with payment delays for oil production from the Kurdistan government.
Shares were 0.4% lower on Tuesday morning in London at a price of 197.60 pence each.
By George Collard; georgecollard@alliancenews.com
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