Gulf Keystone Petroleum Limited is an independent oil company and the operator of the Shaikan Field, one of the largest developments in the Kurdistan Region of Iraq.
Chief Executive Officer
The first half of 2019 saw high levels of operational activity as we continue to develop Shaikan targeting a significant, phased, production uplift. Despite some operational delays, we have made considerable headway towards our 55,000 bopd production target. Activity has further increased during H2 2019 as we remain on track to achieve this milestone in the first half of 2020. As a consequence of the work to increase production in the longer term, the near-term production guidance for the full year has been reduced. However, the Shaikan reservoir, the cornerstone of our equity story, continues to behave strongly.
The Company has a robust balance sheet which supports operational funding requirements and expansion plans in addition to returning funds to shareholders. The Company is therefore well positioned to deliver on its growth objectives for the benefit of all stakeholders.
10 September 2019
Half Year 2019 highlights
- Revenue of $95.6 million (H1 2018: $116.2 million).
- EBITDA of $59.0 million (H1 2018: $61.6 million).
- Profit after tax of $24.2 million (H1 2018: $26.7 million).
- Growth in activity required to bring production to 55,000 bopd led to an increase in cash operating costs and cash operating costs per barrel in line with previous guidance to $18.4 million (H1 2018: $14.1million) and $3.9/bbl (H1 2018: $3.0/bbl) respectively.
- EBITDA and profit after tax remain steady.
- Net capital investment in Shaikan of $32.4 million (H1 2018: $6.9 million). Full year capital investment guidance stands at $88-104 million net ($110-130 million gross).
- Cash balance of $302.7 million at 30 June 2019 and $263.6 million at 9 September 2019.
- Continuous payments supported by Crude Oil Sales Agreement.
- Revenue decrease reflects lower oil prices and production vs. H1 2018.