Shaikan Payment Update
Gulf Keystone Petroleum, a leading independent operator and producer in the Kurdistan Region of Iraq, is pleased to confirm that, further to the recent statement by the Kurdistan Regional Government ("KRG") regarding the November payment to the exporting international oil companies ("IOCs") in the region, a gross payment of US$15 million (US$12 million net to Gulf Keystone) has been received by the Company.
This payment satisfies the Company's invoice for the month of November 2015 which, at the request of the KRG's Ministry of Natural Resources, was submitted on 19 November 2015. Following the payment, the Company's current cash position will be US$54.6 million.
Since December 2014, when the first payment to the exporting IOCs in the region was authorised by the KRG, the Company has received payments, totalling US$86 million gross for Shaikan crude oil export sales, including three consecutive payments for September, October and November. These payments allowed the Company to meet its debt payment obligations in April and October.
In line with a number of public statements made by the KRG this year, Gulf Keystone expects that these payments will continue in a regular manner and also that all amounts owed in arrears, which as of 30 September 2015, and subject to audit, totalled US$298.4 million net to the Company, will be considered for payment in 2016.
The previously announced full year production guidance for the Shaikan field of 30,000-34,000 barrels of oil per day remains unchanged, while the Company continues to exercise a prudent approach to all expenditure, cutting the costs across the organisation.
Commenting on today's announcement, Jón Ferrier, CEO, said:
"We continue to drive the Company forward with three principal strategic objectives: safe and reliable operations, commercial sustainability of the business achieved through regular monthly payments and addressing of the arrears, and constructive relationships with our host government, shareholders and bondholders. We have made substantial progress on a number of fronts during 2015, including the 114% increase in the Company's 2P reserves, and maintained stable production levels throughout the year."