Gulf Keystone Petroleum (GKP) narrowed its losses in 2016 after enjoying a year of “safe and secure operations” in its stomping ground of Kurdistan.
London-listed GKP said its plant uptime was 98% over the 12 months and that gross production increased by 14% to 12.7million barrels.
In another boost for the firm, its Shaikan-8 well came back on stream last month and is producing dry oil at a rate of 1,800 barrels per day.
Bermuda-headquartered GKP also managed to lower operating costs per barrel to $3.5 from $5 in 2015.
Revenues shot up 126% to $194million, while pre-tax losses narrowed to $17million from $213million.
The group completed its balance sheet restructuring in October, reducing total debt from more than $600million to $100million.
It also raised $25million through an open offer.
GKP’s cash balance at April 5, 2017, was $112.7million.
GKP chief executive Jon Ferrier said: “We are strongly encouraged by the stable performance of Shaikan in-line with expectations and I am pleased to report achieving average gross production for 2016 at 34,794 barrels of oil per day at the upper-end of our 31,000-35,000 bopd guidance, while over the first quarter of 2017 we averaged 36,293 bopd.
“We are cash flow positive with a healthy current cash balance of $112.7 million as at 5 April 2017, so we are primed for future development. Since September 2015, we have received 16 payments from the Natural Resources Ministry for Shaikan exports.
“To reiterate the group’s position; we have a field which continues to perform predictably, a revitalised team, and a healthy balance sheet, with which we stand ready to further invest in the Shaikan Field and grow shareholder value.”