14th May 2014 10:16
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Wednesday warned of uncertainties over the timing of payments from its oil sales but maintained its revenue guidance for 2014.
The oil and gas exploration and development company said it received a USD6.5 million gross payment for the first of its crude oil export sales from its newly producing Shaikan facility in the Kurdistan Region of Iraq at the start of May.
The company said the payment is from sales which took place in January and it is currently waiting for a further USD24 million which is outstanding to the company. It said that due to the delays in payment, there is now uncertainty in the timing of revenue recognition and guidance for 2014.
However, at this point the company maintained its full-year 2014 revenue guidance at USD150 million to USD180 million, with significantly increased production revenues expected in its second-half.
The company said that during the quarter, it delivered 836,205 barrels of crude oil for export, with 24,767 barrels being sold domestically.
Commencement of commercial oil production from the Shaikan facility started in 2013 and it recently increased production at the first of two facilities to 16,000 barrels of oil per day, with an aim to reach 20,000 barrels per day in the near term, with production from its second production facility also coming online this year.
The company said in March that gross production for 2013 totalled 496,921 barrels of oil compared to 832,859 barrels of oil from Shaikan.
Gulf Keystone said that it expects its Shaikan production capacity to increase to 40,000 barrels of oil per day by the end of the fourth quarter 2014 and to 66,000 barrels of oil per day by the first quarter 2016, before progressing to its medium term target of 100,000 barrels of oil per day.
Gulf Keystone shares were down 3.7% to 94.60 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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