Gulf Keystone Petroleum Limited (LSE:GKP) shares were on the back foot on Monday as a statement ahead of today’s AGM flagged that production for 2022 would be towards the lower end of its previously guided range.
GKP, in the statement, noted that 2022 production is expected to be at the lower end of the guidance range of 44,000 to 47,000 barrels of oil per day, due to a temporary shut-in of one well caused by an Electrical Submersible Pump electrical failure.
The well has now been restarted and production is gradually being ramped up, it added.
Chief executive Jon Harris highlighted that strong oil prices, a low-cost production base, and a focus on capital discipline have led to significant cash flow generation in 2022.
It allows Gulf Keystone to pay dividends of US$215mln, repay its US$100mln bond, and invest in the Shaikan field's production growth, the Kurdistan-based oil firm said.
Harris also noted that in order to drive production and cash flow growth, Gulf Keystone is planning to maintain its drilling momentum and intends to drill the SH-P well in the coming months.
The company's non-executive chairman, Jaap Huijskes, is to retire from the board following the 2023 annual general meeting.
In London, Gulf Keystone shares were down 9p or 4.5%. changing hands at 192p each which values the company at just over £450mln.