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29 June 2015
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone" or "the Company")
Production and Marketing Update
Gulf Keystone, the operator of the world class Shaikan field in the Kurdistan Region of Iraq, today confirms that it continues to produce in excess of 40,000 barrels of oil per day ("bopd") following the successful completion of de-bottlenecking operations at PF-1.
As a result of the continuing dialogue with the Kurdistan Regional Government's Ministry of Natural Resources ("MNR") to establish a regular payment cycle for all oil sales, both current and historic, the Company has now adopted a diversified marketing strategy. Currently, sales of Shaikan oil comprise crude oil export deliveries by truck to the Turkish coast and sales to a domestic buyer under a new six months contract which provides for offtake of between 12,000 and 40,000 bopd.
The Company has recently received total payments of US$9.8 million in respect of domestic deliveries, comprising US$4.9 million for crude oil sales previously delivered in 2014 and US$4.9 million as the first payment for deliveries under the new six months domestic offtake contract.
As of 26 June 2015, the Company's cash position was US$68.7 million with further payments anticipated as a result of the continuing dialogue with the MNR.
Enquiries:
Gulf Keystone Petroleum: | +44 (0) 20 7514 1400 |
Jón Ferrier, CEO | |
Anastasia Vvedenskaya, Head of Investor Relations | +44 (0) 20 7514 1411 |
Celicourt Communications: | +44 (0) 20 7520 9266 |
Mark Antelme Jimmy Lea |
or visit: www.gulfkeystone.com
Notes to Editors:
· Gulf Keystone Petroleum Ltd. (LSE: GKP) is an independent oil and gas exploration with operations in the Kurdistan Region of Iraq.
· Gulf Keystone Petroleum International (GKPI) holds Production Sharing Contracts for four exploration blocks in Kurdistan, the Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel blocks.
· GKPI is the operator of the Shaikan Block, which is a major commercial discovery, with a working interest of 75% and is partnered with MOL Kalegran Limited (a 100% subsidiary of MOL Hungarian Oil and Gas plc.) and Texas Keystone Inc., which have working interests of 20% and 5% respectively.
· Gulf Keystone plans to move into the large-scale phased development of the Shaikan field targeting 100,000 bopd of production capacity during Phase 1 of the Shaikan Field Development Plan.
Disclaimer
This announcement contains certain forward-looking statements. These statements are made by the Company's 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 uncertainties, including both economic and business factors, underlying such forward-looking information. 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.
This communication and the information contained herein is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the company and its management, as well as financial statements. The company does not intend to register any portion of this offering in the United States or to conduct a public offering in the United States or any other jurisdiction. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the Company and its management, as well as financial statements. Copies of this communication are not being, and should not be, distributed in or sent into the United States.