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oil_investor - 27 May 2017 - 18:03:30 - 540180 of 653241 "Shaikan is world-class" - Jon Ferrier "Shaikan will produce for 80 to 100 years" - John Gerstenlauer "The Reserves are huge and real" - Tony Peart "GKP have billions of barrels of recoverable barrels" - colleague of Tony Peart "I joined GKP because of the asset" - Jon Ferrier "The Transient Drainage Radius is 6 miles" - John Stafford "Shaikan will produce beyond the lives of our grandchildren" - Jon Ferrier "The oil hasn't gone anywhere" - John Gerstenlauer "An extra 0.2% Fracture Porosity would add 800 million barrels to Reserves overnight" - John Stafford "Shaikan is second only to Kirkuk" - John Hurst, Exploration Director Genel Energy
28 September 2022
Gulf Keystone Petroleum Ltd. (LSE: GKP)
(“Gulf Keystone”, “GKP” or “the Company”)
Interim Dividend Exchange Rate
Gulf Keystone announced on 1 September 2022 the declaration of a $25 million interim dividend, equivalent to 11.561 US cents per Common Share of the Company. The dividend will be paid on 7 October 2022 to those shareholders that were on the register of members of the Company as at 23 September 2022.
The Company announces that shareholders receiving dividends in GBP will receive an equivalent payment of 10.727 pence per Common Share, based on the conversion of US dollars into pounds sterling at a rate of $1:£0.9279 prevailing on 27 September 2022.
You couldn't make this stuff up. This hasn't been discussed on the board so for anyone who missed it:- As we know, a couple of weeks ago Total finalised the sale of it's 18% stake in Sarsang to Shamaran because they didn't want to jeopardise the $27 billion worth of deals that they were on the verge of signing with the ICG for work in southern Iraq that they had spent the previous couple of years negotiating. The ICG hoped that the signing of this contract would reverse the exodus of western oil majors from the country. 3 days ago Total walked away because as part of the deal the chumps in Baghdad had wanted them to partner with the Oil Minister's fledgling new Iraq National Oil Company which the so called Iraq Supreme Court has now declared has no legal foundations. Iraq Oil Report 4 days ago - "The Federal Supreme Court appeared to end Oil Minister Ihsan Ismaael's fledgling efforts to create an Iraqi National Oil Company, ruling its legal foundations invalid." So we have a situation where the idiots in Baghdad have been trying to get a western major to sign up to a $27 billion deal partnering with an INOC where a Supreme Court that itself has no legal standing has decreed that the said INOC has no legal foundation. And these are the same clowns that are lecturing the Kurds on what is legal and what isn't. "A $27-billion oil deal between France’s TotalEnergies and OPEC producer Iraq has failed to materialise because of the French firm’s refusal of terms for partnership with the Iraqi National Oil Company (INOC), the local press reported on Friday." “Total refused to complete the contract with Iraq after it rejected terms for partnership with INOC,” Aliqtisad News and other Iraqi publications reported." hTTps://www.zawya.com/en/projects/oil-and-gas/fears-over-inoc-status-stalled-totalenergies-27bln-deal-with-iraq-report-rs1d3okd No wonder the Kurds just ignore them carry on regardless and do their own thing.
New UK PM reiterates commitments to Iraq, Kurdistan Region: Truss reminded the Kurdish president that her first meeting as a foreign secretary was with Barzani back in September last year, Tahir said. The newly inaugurated United Kingdom Prime Minister Liz Truss reiterated her country’s commitments to both Iraq and Kurdistan Region during her talks with President Nechirvan Barzani at the royal reception hosted by King Charles III in London on Sunday, a Kurdish diplomat said. Barzani was invited by the UK to attend the State Funeral of the late Queen Elizabeth II, who was laid to rest in Windsor Castle on Sunday following a long formal procession. A total of 500 dignitaries took part in the event. The British prime minister reiterated her government’s commitments “in all fields” to Iraq and Kurdistan Region in her talk with Barzani, Karwan Jamal Tahir, the Kurdistan Regional Government (KRG) Representative in the UK, told Kurdistan 24 on Monday. Truss reminded the Kurdish president that her first meeting as a foreign secretary was with Barzani back in September last year, Tahir said. The new premier used to serve as the secretary of foreign affairs in former Prime Minister Boris Johnson’s cabinet. She was announced as the head of the Conservative Party and a premier in early September. In September 2021, Barzani visited London, where he met with the country’s top leaders, including Johnson. Tahir described Barzani’s participation in the late monarch’s funeral as a “big event”. The Queen “was a true inspiration to many around the world,” Barzani said after he had signed the book of condolence in London on Monday. He extended his condolences to King Charles III during the royal reception as well.
https://www.iraqoilreport.com/news/iocs-double-down-on-kurdistan-despite-legal-threats-45123/
Shareholder distributions
· The Company has announced an ordinary dividend policy of at least $25 million per year and, with free cash flow, is committed to maximising distributions taking into account various factors, including investment levels required to achieve production targets, deliver profitable growth and satisfy PSC obligations, and preserve adequate liquidity to manage geopolitical, KRG payment and market uncertainties
· Today we are declaring an interim dividend of $25 million, increasing total dividends declared in 2022 to $215 million:
o $25 million interim dividend is equivalent to 11.561 US cents per Common Share of the Company and is expected to be paid on 7 October 2022, based on a record date of 23 September 2022 and ex-dividend date of 22 September 2022
· Assuming timely payment of invoices and continuing strong oil prices, we expect continued robust cash flow generation, which would provide flexibility to consider funding future capital expenditures and further distributions to shareholders, while preserving adequate liquidity
· With continued progress towards implementing the FDP, the Company expects to firm up the future estimated timing and levels of investment and review the dividend policy
Investor & analyst presentation
Gulf Keystone's management team will be presenting the Company's 2022 Half Year Results at 10:00am (BST) today via live audio webcast:
https://stream.brrmedia.co.uk/broadcast/62f6364cb629a70556524626
Financial
· Free cash flow more than doubled to $177.3 million (H1 2021: $66.7 million), driven by the strengthening oil price and continued production growth, enabling the Company to deliver against its strategic commitment of balancing investment in growth with shareholder returns
· Dividends declared of $215 million in 2022, providing shareholders with a sector-leading dividend yield of 36% based on GKP's closing price on 30 August 2022
· Significant increase in Adjusted EBITDA and profitability in H1 2022:
o Adjusted EBITDA up 122% to $208.6 million (H1 2021: $93.8 million)
o Profit after tax up 151% to $162.8 million (H1 2021: $64.8 million)
o Realised price up 93% to $84.3/bbl (H1 2021: $43.7/bbl)
o Gross average production increased 3% to 44,941 bopd (H1 2021: 43,516 bopd)
o Revenue up 102% to $263.6 million (H1 2021: $130.7 million)
o Gross Opex per barrel of $2.9/bbl (H1 2021: $2.4/bbl), at low end of 2022 guidance of $2.9-$3.3/bbl
· Net capex of $41.8 million (H1 2021: $14.1 million), primarily related to the drilling of SH-15, well interventions and workovers, well pad construction, procurement of flowlines and plant expansion activities
· $354.4 million net to GKP received year to date from the Kurdistan Regional Government ("KRG") for crude oil sales and revenue arrears, with the arrears balance related to the November 2019 to February 2020 invoices fully recovered
· $100 million outstanding bond redeemed in August, leaving the Company debt-free and eliminating annual interest costs of $10 million
· Robust balance sheet maintained with cash balance of $112.0 million at 31 August 2022
Outlook
· 2022 gross average production guidance reiterated at 44,000-47,000 bopd
o Continuing to optimise production through prudent management of existing well stock, delivery of well workover and intervention programme and addition of SH-16
· Gross Opex guidance of $2.9-$3.3/bbl remains unchanged
· Increasing 2022 net capex guidance from $85-$95 million to $110-$120 million
o Primarily driven by the drilling of SH-16 and initial procurement activities related to the installation of water handling capacity
· While timing of Field Development Plan ("FDP") approval remains uncertain, we continue to engage with the Ministry of Natural Resources ("MNR") towards project sanction and are progressing the tendering process for the Gas Management contract. We are also monitoring the potential impact of global supply chain pressures and logistical challenges on the costs and schedule of the FDP
· We continue to monitor the long running dispute between the Federal Iraqi Government and the KRG on the management of oil and gas assets in Kurdistan. Our operations currently remain unaffected
Shareholder distributions
· The Company has announced an ordinary dividend policy of at least $25 million per yea
RNS Number : 8474X
Gulf Keystone Petroleum Ltd.
01 September 2022
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1 September 2022
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP", "the Group" or "the Company")
2022 Half Year Results Announcement
Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, today announces its results for the half year ended 30 June 2022.
Jon Harris, Gulf Keystone's Chief Executive Officer, said:
"With the strengthening oil price and increased production, we have delivered strong profitability and cash flow generation in the first half of the year. As we progress towards approval of the Field Development Plan, we have continued to develop the Shaikan Field and recently resumed drilling with the spud of SH-16. We have paid a record $190 million of dividends in 2022 and are pleased today to announce an incremental interim dividend of $25 million, increasing total dividends declared this year to $215 million. While delivering a sector leading dividend yield, we have also maintained a strong balance sheet, redeeming our $100 million bond leaving the Company debt free.
Looking ahead to the rest of the year, we are focused on progressing towards FDP approval and achieving our production and opex guidance as we continue to optimise production from the field while maintaining a rigorous focus on costs. We have raised our 2022 capex guidance to $110-$120 million as we have added the drilling of SH-16 and are progressing initial procurement activities for the installation of water handling facilities, which will enable us to unlock additional production from our wells in the future.
We remain focused on balancing investment in growth with shareholder returns. Continued robust cash generation provides flexibility to consider funding future capital expenditures and further distributions to shareholders, while preserving adequate liquidity."
Highlights to 30 June 2022 and post reporting period
Operational
· Strong safety performance, with no Lost Time Incident ("LTI") recorded for 315 days
· 2022 year to date gross average production increased by 3.6% to c.45,000 bopd as compared to the FY 2021 average of 43,440 bopd
· Continued to progress delivery of our 2022 work programme:
o SH-15 drilled and brought online in April 2022 in record time
o SH-16 (formerly SH-M) and SH-N well pad completed in preparation for resumption of drilling
o Well workovers and interventions completed on two wells to optimise production rates
o Progressing preparatory work for the expansion of the production facilities, including procurement activities for the installation of water handling capacity
· Resumed drilling activities late August with the spud of SH-16:
o Targeting production start-up into PF-2 towards the end of the year
Financial
· F