As oil payments owed to Gulf Keystone (LON:GKP) continue to mount, the Kurdistan oil firm today revealed a US$77mln loss for the first half of the year.
GKP reported a 61% rise in first half revenue to US$30.1mln, versus US$18.7mln in 2014, and said it had US$117mln of unbooked revenue up to June 30.
Arrears due to the company, however, now amount to around US$283mln.
The oil firm, which raised US$40mln in March, ended June with US$63.9mln of cash and that included US$32.5mln of restricted cash to service debt. GKP said it continues to manage expenditure in a prudent manner.
Cursory analysis suggests the company will be keen to see the start of monthly oil payments from the Kurdistan Regional Government (KRG).
Payments, according to statements from the KRG, are due to start in September. They are, however, aimed at covering oil producers’ costs and are expected to be limited initially.
It is expected that arrears will begin to be addressed next year, GKP said.
“We are confident that our host government will be able to deliver on their recent pledge to establish a regular payment cycle for our crude from next month, and will start addressing the amount owed in arrears from 2016,” said chief executive Jón Ferrier.
Ferrier told investors that whilst there are challenges for producers in the region he was “cautiously optimistic” about the future.
GKP has been delivering around 20,000 barrels of crude via a trucking operation to the Turkish coast as well as 20,000 barrels to the export pipeline.
The group set a new operational record, with daily production reaching 45,000 barrels of oil per day.
It said availability of production facilities at the Shaikan field has averaged 98.2% - in the year to date, as far as mid-August. As such, GKP says it should achieve its target for the full year, which is to average between 30,000 and 35,000 bopd.
That would equate to 36,000 to 40,000 bopd for the second half, it added.
"From an operational perspective Shaikan is continuing to perform strongly,” said Ferrier.