10th Sep 2018 10:06
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Monday said it is on track with investment plans to increase production in Shaikan oilfield in northern Iraq as profit multiplied in the first half of 2018.
The oil & gas exploration company said pretax profit for the six months to the end of June jumped to USD26.5 million from USD619,000 reported for the same period a year prior, as revenue increased to USD116.2 million from USD78.3 million.
General & administrative expenses came in lower year-on-year at USD7.6 million versus USD9.7 million, while finance costs declined to USD5.7 million from USD5.9 million.
Gulf Keystone said it achieved gross average production from Shaikan of 31,861 barrels of oil per day for the first half of 2018 and 31,399 barrels daily for July and August. The company maintained its guidance for the full-year at 27,000-32,000 barrels of oil daily.
In June, the company said it reached an agreement with Ministry of Natural Resources of the Kurdistan Regional Government and its partner MOL Hungarian Oil & Gas PLC, in relation to investment plans to increase production at Shaikan to 55,000 barrels of oil per day during the second half of 2019.
Construction work for the investment programme has started, Gulf Keystone said, equipment procurement and contract tendering are underway and overall activity is on schedule.
The company said it plans to submit the revised field development plan later in 2018.
"It is pleasing to note that over the course of the year a number of key milestones have been achieved, leading to the recommencement of investment into Shaikan and the anticipated growth in production from the field," said Chief Executive Jon Ferrier.
"With a clear path to future growth, underpinned by a healthy balance sheet and an outstanding asset, we can look to the future with confidence," added Ferrier.
The stock was trading 3.1% higher on Monday morning at 248.89 pence per share.
Related Shares:
Gulf Keystone Petroleum