Gulf Keystone Petroleum Limited (LSE:GKP) (GKP) told investors it remains focused on preserving liquidity, though it continues to believe that the suspension of Kurdistan crude exports will be temporary.
Suspension of exports from the Shaikan field since 25 March 2023 has subsequently seen outstanding receivables owed to the company of US$151 million net, it said.
Nevertheless, GKP noted that it has partially restarted Shaikan field production, increasing gross average sales volumes to 11,700 bopd in August, and commenced local sales in July.
Talks meanwhile continue to potentially break the deadlock, GKP highlighted, with the recent approval of the 2023-2025 Iraqi budget described as progress towards a new framework for Kurdistan Regional Government (KRG) production.
“While no official timeline has been announced, we continue to believe the suspension of Kurdistan crude exports will be temporary and that the KRG will resume oil sales payments in due course," said GKP chief executive Jon Harris.
The company told investors it had a cash balance of US$80 million as of 8 August 2023.
In London, GKP shares traded positively rising 2.67p or 2.89% to change hands at 94.92p which values the oil company at just over £210 million.