Gulf Keystone Petroleum Limited (LON:GKP) moved to reassure investors with an operations update confirming that its operations at the Shaikan field in the Kurdistan region of northern Iraq continue safely and securely.
It comes amid rising tensions and reports of violence in the region, following a disputed Kurdistan independence referendum in which the vast majority of votes were in favour of separation.
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Earlier this week, Iraqi forces regained control of disputed areas in the vicinity of Kurdistan, including the Kirkuk oil field, after Kurdish fighters ousted ISIS back in 2014.
In London, GKP shares are down just over 20% for the past month.
GKP, in a statement on Friday, said production at the Shaikan field had averaged 34,525 barrels of oil per day since the beginning of October.
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"We remain committed to ensuring safe and secure operations in Kurdistan, and we continue to monitor the geopolitical situation closely. Despite the challenges facing the region, we are maintaining stable operations," said Jón Ferrier, GKP chief executive.
The company said that Shaikan is performing “as expected” and highlighted that it remains on-track to hit the production target of 32,000 to 38,000 bopd for the whole year. Crude production from Shaikan continues to be trucked to Turkey, with some 200 trucks loaded daily.
The company said its current cash position amounted to US$147.2mln.
GKP told investors that it will keep the market appraised of any changes to its normal operations.