29th Jun 2015 07:19
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Monday said it continues to produce over 40,000 barrels of oil per day from its operations in Iraq as it continues dialogue with authorities about establishing a regular payment cycle for all of its crude oil sales.
Gulf Keystone shares were down 10.6% to 35.75 pence per share on Monday morning.
Gulf Keystone said it had maintained production following on from the de-bottlenecking operations in the Kurdistan region of Iraq, and said it had adopted a "diversified marketing strategy" in order to establish a regular payment cycle with the Kurdistan regional government.
Currently, sales are being made by exporting deliveries by truck to the Turkish coast and selling oil to a domestic buyer under a new six month contract, which provides offtake of between 12,000 and 40,000 barrels of oil per day, said the company.
The company has recently received total payments of USD9.8 million in respect of domestic deliveries, comprising USD4.9 million for crude oil sales previously delivered in 2014 and USD4.9 million as the first payment for deliveries under the new six months domestic offtake contract.
The company's current cash balance lies at around USD68.7 million and Gulf Keystone said it expects further payments to be made shortly, which in turn will further bolster its balance.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Gulf Keystone Petroleum