16th Jan 2019 08:38
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Wednesday said it is on track to expand its production capacity after reaching the upper end of its annual guidance.
In 2018, the Iraq-focused oil producer achieved average gross production of 31,563 barrels of oil per day, in line with its guidance range of between 27,000 and 32,000 bopd.
"The plant debottlenecking programme required to expand gross production capacity to 55,000 bopd from PF-1 and PF-2, Iraq, remains on schedule for completion towards the end of 2019," the company added.
Gulf Keystone has inked an agreement with with the rig operator, DQE, to use 'Rig 40' for its upcoming drilling campaign, due to start in March 2019. The first four wells, necessary to achieved the 55,000 bopd target, expected to be completed in the first quarter of 2020.
The company added that it remains fully funded to achieve this target which is expected to cost around USD200 million to USD230 million.
"Given the active 2019 investment programme, particularly in new wells and workovers, the company anticipates improved production levels this year and expects gross average production guidance to be in the range of 32,000 - 38,000 bopd," Gulf Keystone added.
Furthermore, the firm added it has agreed, alongside its partner MOL, a staged investment to increase production to 110,000 bopd by 2024.
Chief Executive Officer Jon Ferrier said: "We continue to make considerable operational headway as we look to safely increase production to 55,000 bopd, in line with our strategy. 2019 is set to be another important year for Gulf Keystone and we look forward to keeping our stakeholders updated on our ongoing progress."
Gulf Keystone shares were trading were trading up 0.9% at 210.92 pence each.
Related Shares:
Gulf Keystone Petroleum