Gulf Keystone (LON:GKP) has received another payment from the Kurdistan Regional Government (KRG) for its Shaikan crude oil exports.
The company received a gross payment of US$15mln (US$12mln net), boosting Gulf’s cash position that stands at US$76.2mln.
It follows a first payment of US$15mln made to Gulf last month and further regular payments are expected to continue into next year.
Gulf said it would use the funds to make interest payments of US$26.4mln, in line with its debt repayment obligations.
In August and September, the KRG confirmed it would start payments to oil companies.
The KRG said between US$75mln and US$100mln of revenue from its direct crude oil sales will be distributed, with the cash allocated ‘in broad proportion’ to the respective companies past and present contributions to export.
Broker Cantor Fitzgerald said: “Albeit a small payment in the context of the outstanding receivable due to the company, we believe shareholders will take comfort from the KRG clearly establishing a regular payment cycle to its domestic producers.”
Shares rose 5.6% to 30.6p today.