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Gulf Keystone has reversed September's production downgrade, now expects to hit original target for 2019

The Iraq based oil successfully regained lost ground albeit a drilling delay means investors still need to wait for the much sought after, longer-term rate of 50,000 bopd.

Gulf Keystone Petroleum Limited - Gulf Keystone  has reversed September's production downgrade, now expects to hit original target for 2019

Gulf Keystone Petroleum Limited (LON:GKP) revealed it has successfully played catch-up in Kurdistan, as the company today told investors it is now on-track to achieve its original production guidance or 2019.

September’s half yearly results statement came with a downgrade to guidance with GKP cautioning that it would produce 30,000 to 33,000 barrels of oil per day, down form 32,000 to 38,000.

Today, however, the company highlighted production and infrastructure improvements.

Its assets achieved gross production of 40,582 bopd in November - presently the rate is around 42,000 bopd – and, it said that the average for the year to the end of the month was 32,127 bopd.

Now, GKP reckons it will mark 2019’s production inside the earlier range of 32,000 to 38,000 bopd.

"The company has made significant progress on a number of fronts; with the successful addition of SH-12 to the PF-2 production inventory and drilling of the gas appraisal well SH-9 where operations continue,” said Jon Ferrier, GKP chief executive.

“The imminent start of export through the PF-1 pipeline means all production from Shaikan will now be exported directly via pipeline, benefitting safety, reducing environmental impact and improving netbacks. 

“We are pleased to confirm that we are on track to achieve our initial average production guidance for 2019, and whilst the need to side-track SH-9 has slightly impacted our timing guidance for delivering 55,000 bopd, we remain on course to achieve further significant production growth in 2020.”

GKP also noted that it had some US$209mln of cash as at 9 December, and, given its a robust cash position the company has decided to reload its share buy-back programme with a further US$25mln budget (a US$15mln tranche kicked off today).

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