Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, today provides an operational and corporate update.

Jon Harris, Gulf Keystone's Chief Executive Officer, said:
"We continue to safely navigate a challenging operating environment due to COVID-19, with gross average year-to-date production of c.43,600 bopd, up almost 20% from 2020 annual average gross production. Today, we are pleased to announce that we have restarted work to complete SH-13, marking the resumption of drilling activities ahead of schedule. As a result, we now expect to increase gross production towards 55,000 bopd in Q4 2021 and to be at the upper end of 2021 guidance (40,000-44,000 bopd) as we continue to develop and realise the value of the Shaikan Field's substantial reserves and resources for the benefit of all stakeholders."

55,000 bopd investment programme

• Successful restart of drilling activities, with commencement of SH-13 completion ahead of the previously announced schedule of Q3 2021.
• After SH-13, SH-I will be drilled and electric submersible pumps will be installed in two existing wells.
• Gross production is now expected to increase towards 55,000 bopd in Q4 2021, versus previous guidance of Q1 2022.

Operational

• Continued strong safety performance, with no Lost Time Incident ("LTI") recorded for over 530 days.
• Continuing to effectively manage the impact of COVID-19 on production operations and the resumption of drilling activities despite continued challenges on the ground.  
• Gross average production from the field in 2021 to date of c.43,600 bopd, in line with 2021 guidance.

Financial

• $100.8 million ($78.9 million net to GKP) received from the Kurdistan Regional Government in 2021 to date for payments of crude oil sales and recovery of outstanding arrears. 
• As previously announced, proposing a $25 million annual dividend and $25 million special dividend, both for approval at next week's Annual General Meeting as we continue to balance investment in growth and returns to shareholders.
• Retain a robust balance sheet, with a cash balance of $195 million as at 10 June 2021.

Outlook

• Expect 2021 average gross production guidance to be towards the upper end of the 40,000 to 44,000 bopd guidance range following early resumption of drilling activities.
• 2021 guidance of $55-$65 million net capex and $2.5 to $2.9/bbl gross unit Opex remains unchanged.
• Continuing to progress the preparation of the Field Development Plan, including the Gas Management Plan, through engagement with the Ministry of Natural Resources and other stakeholders; we will provide updates as this work progresses.

KeyFacts Energy: Gulf Keystone Iraq country profile