19th Sep 2013 07:47
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Thursday said it has hired Deutsche Bank to assist with its move the the main market of the London Stock Exchange, from AIM, by the end of the year, as it forecast that it would be producing up to 40,000 barrels of oil a day from its Shaikan field in Kurdistan by the end of the year.
The company said its first Shaikan production facility, capable of producing 20,000 barrels of oil per day, was fully commissioned in July and had achieved 12,400 barrels a day by early September, while construction of the second facility, capable of producing the same amount, is expected to be completed in October and be producing by the end of the year.
The company is a relatively small producer compared to some of the oil majors that have moved into Kurdistan since the end of the second Iraq war. However, it has been growing quickly and in June was cleared by Kurdish authorities to start production.
Chief Executive Todd Kozel told CNBC that the company wasn't currently in any takeover discussions when he was asked whether Gulf Keystone's fast growth and future prospects had attracted any of its larger rivals. He deflected question on whether it would be open to talks if approaches were made.
He said the biggest problem facing the company at the moment is an influx of refugees fleeing the civil war in Syria into the areas that the company is drilling. It has been donating some of the money from oil it has been selling to helping the refugees.
Kozel said the company would continue to improve its corporate governance as part of its move to the LSE Main Market. It has just appointed Simon Murray as its non-executive Chairman, splitting the CEO and Chairman roles, and is searching for another non-executive director.
The company reported a USD26.4 million loss for the six months to end-June, compared with a USD31.4 million loss a year earlier, although it wasn't earning any revenues during the period. Its earnings will start to become more important now that it has moved to production.
It had cash and cash equivalents totaling USD141.2 million at June 30, compared with USD253.7 million at the end of December. The figure had fallen to USD101.2 million as at September 16.
It said it wants to drill up to eight wells on Shaikan in 2014.
Gulf Keystone is also majority owner and operator of the Sheikh Adi field, and has minority interests in Ber Bahr and Akri Bijeel. It said it expects to drill an appraisal well at Sheikh Adi in 2014 and is targeting two additional exploration areas after recent seismic tests.
Gulf Keystone shares were down 4.8% at 207.363 pence early Thursday
By Steve McGrath; [email protected]; @SteveMcGrath1
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