("Gulf Keystone", "GKP" or "the Company")
2022 AGM & Operational & Corporate Update
Ahead of today's 2022 Annual General Meeting ("AGM"), Gulf Keystone, a leading independent operator and producer in the
"Following a year of strong operational and financial performance in 2021, our leverage to the oil price, low-cost production base and focus on capital discipline have continued to drive significant cash flow generation from the Shaikan Field in 2022. We have declared sector-leading dividends of
Year to date production has averaged c.44,900 bopd. We are prudently managing our wells to avoid traces of water and, as a result, we are tightening 2022 gross production guidance to 44,000 - 47,000 bopd. The installation of water handling facilities will unlock upside production potential and we continue to explore acceleration options in a supply constrained market. In the near-term, we continue to progress our well workover and intervention programme to optimise production. While timing of approval remains uncertain, we also continue to make positive progress on the FDP as we prepare to resume drilling and ramp up production.
Ahead of our AGM later today, I would like to thank our shareholders, employees and other stakeholders in
Operational
· Continued strong focus on safety, with no Lost Time Incident ("LTI") recorded for over 240 days
· Gross average production in 2022 year to date of c.44,900 bopd; gross average production in June of c.45,900 bopd, as at
· Year to date gross average production impacted by:
o SH-12 reperforated and brought back online in June at a reduced rate after being shut-in at the beginning of the year
o SH-14 production remains constrained following acid stimulation earlier in the year
o SH-15 brought online in April after being drilled in record time and is currently producing towards the lower end of the anticipated range
· While the industry is currently experiencing equipment lead time pressures in a supply constrained market, we are continuing to review options to accelerate installation of water handling facilities that would enable further production ramp up from existing wells
· Progressing well workover and intervention programme to optimise near-term production
Financial
· Significant cash flow generation in 2022 year to date, with
·
o
· Robust balance sheet, with a cash balance of
Outlook
· Tightened 2022 gross average production guidance to 44,000 - 47,000 bopd
· Gross Opex guidance of
· Net capital expenditure guidance of
· While timing of FDP approval remains uncertain, we continue to progress towards sanction with the MNR. The Company is preparing to resume drilling to ramp-up production from the Jurassic reservoir and will update capital expenditure guidance in due course
· 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
· Remain focused on balancing investment in growth with shareholder returns, while preserving adequate liquidity:
o Intention to call
o Assuming timely payment of invoices and strong oil prices, we expect continuing robust cash flow generation in 2022 providing flexibility to consider further shareholder distributions and an increase in capital expenditure to resume drilling
2022 AGM
Gulf Keystone is today hosting its 2022 AGM at
The AGM will be hosted by
Update on ordinary and special dividend per share rate
Gulf Keystone will be seeking shareholder approval at today's AGM to pay total dividends of
· The annual ordinary dividend of
· The special dividend of
The Company will disclose the pounds sterling rate per share for both dividends prior to their payment dates.
Update on
Further to Gulf Keystone's disclosure in its Annual Report and Accounts for the year ended
Gulf Keystone notes the KRG's public assertion that the actions taken by the
The Company continues to work closely with the KRG, its advisers and other stakeholders to protect its interests and will provide further updates on the matter as and when it is able and necessary to do so, recognising that this is a live legal matter and Gulf Keystone is not party to the resolution discussions between the Federal Iraqi Government and the KRG.
Gulf Keystone's operations currently remain unaffected.
This announcement contains inside information for the purposes of the
Enquiries:
Gulf Keystone: | +44 (0) 20 7514 1400 |
aclark@gulfkeystone.com | |
+ 44(0) 20 8434 2754 | |
Mark Antelme | GKP@Celicourt.uk |
or visit: www.gulfkeystone.com
Notes to Editors:
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.
This information is provided by RNS, the news service of the
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