Business
2023 Half Year Results Announcement
2023 Half Year Results Announcement.
About this update from Gulf Keystone Petroleum Limited
[{"type":"text","content":"\n\n \n \n31 August 2023\n \n \nGulf Keystone Petroleum Ltd. (LSE: GKP)\n(\"Gulf Keystone\", \"GKP\", \"the Group\" or \"the Company\")\n \n2023 Half Year Results Announcement\n \nGulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, today announces its results for the half year ended 30 June 2023.\n \nJon Harris, Gulf Keystone's Chief Executive Officer, said:\n\"GKP's operational and financial performance in the first six months of 2023 was materially impacted by the suspension of Kurdistan crude exports following the closure of the Iraq-Turkey Pipeline in March and continued delays to KRG payments. As a result, we shifted rapidly from a focus on driving profitable production growth to preserving liquidity, suspending all expansion activity and aggressively reducing expenditures across the business.\nIn July, we commenced local sales and partially restarted production. Since then, we have increased gross average sales to around 23,100 bopd towards the end of August. At current realised prices of around $30/bbl, we are able to cover our current estimated H2 2023 monthly net capex, operating costs and other G&A run rate of about $6 million while increasing our flexibility to manage accounts payable. We continue to actively pursue further increases in local sales and cost reductions and retain the flexibility to reduce operational activity and costs if sustainable local sales do not materialise to an acceptable level.\nWhile no official timeline has been announced, we continue to believe that the suspension of exports will be temporary and that the KRG will resume oil sales payments in due course. In the interim, we remain focused on protecting the interests of GKP's stakeholders by preserving liquidity and engaging as a company and industry with the KRG and other key parties.\"\n \nHighlights to 30 June 2023 and post reporting period\n \nOperational\n \n· Shaikan Field exports remain suspended following the closure of the Iraq-Turkey Pipeline (\"ITP\") on 25 March 2023\n· Production & trucking operations started at PF-1 in July and expanded to include PF-2 in August to support increasing local sales:\no c.4,900 bopd gross average sales for the perio...