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Gulf Keystone Petroleum Ltd on Friday said it would consider further returns to shareholders as it highlighted higher average sales in the year to date. Shares in GKP rose 7.8% to 152.90 pence in London on Friday morning. In an operational and corporate update ahead of Friday’s annual general meeting the oil and gas producer hailed ‘robust’ crude sales from the Shaikan field to the Kurdistan market recently. Sales in the year to June 19, totalled around 38,700 barrels of oil per day. In May alone, sales averaged 48,200 bopd but have eased to 40,500 so far in June. GKP put this down to the ‘temporary impact of Eid al-Adha celebrations on truck availability’. The oil company operating in the Kurdistan region of Iraq said realised prices have improved to around $28 a barrel from $27, due to ‘local market demand’. Chief Executive Jon Harris said: ‘Shaikan field crude sales to the Kurdistan market have continued to be robust in recent weeks.’ This has led to an improved liquidity position, Harris noted. As a result, GKP declared a 6.832 US cents per share interim dividend, worth $15 million in total. Harris said: ‘We will continue to review additional distributions based on the operating environment and liquidity needs of the company.’ GKP said it remains ‘committed’ to returning excess cash to shareholders with an ambition to ‘reinstate an appropriate distributions policy to provide shareholders with greater clarity on returns.’ Harris said the company has made ‘significant progress’ as a business since the 2023 AGM. GKP said it continues to actively engage with government stakeholders in Kurdistan for a pipeline exports restart solution. ‘While it remains uncertain when exports will restart, political and commercial negotiations are ongoing, with recent tripartite meetings taking place in Baghdad,’ GKP added. GKP said it is ready to restart exports, contingent upon reaching agreements on payment surety for future oil exports, the repayment of outstanding receivables and the preservation of current contract economics. ‘We continue to actively engage with government stakeholders to push for a pipeline exports restart solution and unlock significant potential value for shareholders. In the interim, we intend to maximise shareholder value from local sales.’ GKP said its cash balance was $99 million as at June 20. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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