Gulf Keystone Petroleum Ltd (AIM: GKP) said it is eagerly awaiting drilling results from the first exploration well in Kurdistan on the highly prospective Shaikan Block, and it expects to spud the first exploration well on the similarly prospective Akri-Bijeel block during the third quarter of 2009,
The statement accompanied full-year results which showed revenues of US$1 million in the year to December 31 2008, compared with US$5.4 million a year earlier. Capital expenditure rose to US$87.1 million from US$9.6 million previously, mainly due to the exploration activities in Algeria and the Kurdistan Region of Iraq.
Taking into account the net cash used in operating activities, capital expenditure and proceeds from the issue of shares the net cash outflow during the year was US$51.3 million, compared with net inflow of US$28.9 million in 2007, the company said.
Chairman and CEO Todd Kozel said: “I am pleased to report another year of good progress by Gulf Keystone. I believe we are a much stronger company operationally and strategically than a year ago.”
Regarding the drilling at Shaikan and the planned work at Akri-Bijeel, he said: “A discovery success on either of these wells could materially change the value of Gulf Keystone. I do believe the outlook has never been more exciting for Gulf Keystone.”
Realising the funding to deliver the opportunities within the company's portfolio remains a priority and a range of realistic funding solutions are being pursued.