(Alliance News) - Gulf Keystone Petroleum Ltd reported a decrease in gross average oil sales over the last few months, and said "preserving liquidity" remains a high priority.
Shares in Gulf Keystone were down 5.1% at 106.00 pence each on Wednesday afternoon in London.
The operator of the Shaikan Field, which is one of the largest developments in Iraq's Kurdistan region, reported gross average sales of approximately 28,800 barrels of oil per day between September 30 and Monday, down from the 33,000 barrels reported on September 27. Monthly sales ranged from around 37,200 barrels per day in October and around 21,500 barrels in November.
Gulf Keystone said the fluctuating volumes mainly reflected competition with increased supply from other Kurdistan producers, associated restraints on its refinery capacity and seasonal effects on demand for crude oil.
Average realised prices remained at approximately USD30 per barrel, "in line with local market pricing".
Gulf Keystone said that the current local sales volumes and realised prices allowed it to more than cover its estimated expenses of around USD6 million per month. It had a cash balance of USD85 million with no debt as of Tuesday.
Going forward, Gulf Keystone said that it remains focused on preserving liquidity by maximising local sales, maintaining strict cost control and proactively managing accounts payable. It continues to pursue opportunities to increase local sales, although "local market demand remains variable."
Additionally, Gulf Keystone "continues to believe that pipeline exports will restart" as negotiations progress between the Government of Iraq, the Kurdistan Regional Government, and the Association of the Petroleum Industry in Kurdistan.
By Emma Curzon, Alliance News reporter
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Gulf Keystone Petroleum (GKP)