Kurdistan-focused oil explorer Gulf Keystone says it expects to bring its production in the region up to 20,000 barrels of oil per day by the end of the year – after seeing losses first-half losses at the firm fall.
The company, which had been involved in a bitter boardroom dispute with investors this summer, saw production from the Shaikan production facility hit 183,000 barrels in its first two months, with construction on the second production facility due to finish next month.
Losses after tax narrowed to $26.4million, down from the $31.4million the previous year, with lower costs from Gulf Keystone’s legal battle with Excalibur and lower share bonuses helping bring down the total.
Work on the Shaikan field has accelerated since the field development plan was given the go-ahead in the summer, with the the company targeting production of 150,000 barrels a day from the field by 2016.
Production has been temporarily suspended on the field since September 4, but is due to resume shortly. Work is also set to start on drilling an appraisal well on the Sheikh Adi prospect next year, with production from the Ber Bahr field, where Gulf Keystone has a 40% working stake, due to begin in mid-2014.
“As a result of having the Shaikan FDP approved, and in line with the Kurdistan Regional Government’s stated production targets for the Shaikan discovery, we are delighted to have entered the first phase of commercial production, which was eagerly awaited by the company’s shareholders,” said chief executive Todd Kozel.
“It is an important milestone and another highlight of the four years of hard work since striking oil in August 2009.
“With the protracted Excalibur litigation behind us and the key uncertainty about the Company’s future removed, we are working hard to deliver on all of our stated objectives and are very pleased to have appointed Deutsche Bank to advise the company on achieving our goal to move to the Main Market by the end of 2013.”
Recommended for you
