head of today's 2025 Annual General Meeting ("AGM"), Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq, provides an operational and corporate update.
Jon Harris, Gulf Keystone’s Chief Executive Officer, said:
“We are looking forward this morning to welcoming GKP shareholders to our 2025 AGM. The Company has performed well in the year to date, with robust local sales demand enabling gross average production of c.44,900 bopd, supporting continued free cash flow generation and an interim dividend of $25 million paid in April.
Looking ahead, our 2025 annual guidance is unchanged. While we have seen no material impact on Shaikan Field operations to date, we are closely monitoring the developing conflict between Israel and Iran. We are also continuing to engage with government stakeholders regarding an exports restart solution. While there remains no timeline, we are hopeful of ultimately reaching an agreement.'
Operational & Financial
- Strong safety track record, with Zero Lost Time Incidents for over 880 days
- Gross average production of c.44,900 bopd in 2025 year to date (to 18 June 2025):
- Production supported by robust local market demand and optimisation initiatives offsetting field declines and well maintenance
- Realised prices have remained at around $27-$29/bbl this year despite the recent fluctuations in Brent price
- Continued disciplined capital expenditures and strict cost control have supported free cash flow:
- $25 million interim dividend paid in April according to the Company’s announced approach of semi-annual dividend reviews; the next Board review is expected around the Half Year Results in August
- Debt-free balance sheet, with cash of $100 million as at 19 June 2025
Outlook
2025 operational and financial guidance
- 2025 gross average production guidance unchanged at 40,000 - 45,000 bopd:
- The planned PF-2 shutdown, expected to last c.3 weeks, has been deferred from Q4 2025 to Q2 2026, to support production and provide greater work programme flexibility
- The Company continues to carefully manage natural field declines and production rates on certain wells constrained by water and gas
- Production guidance remains subject to local market demand
- 2025 net capital expenditure and cost guidance unchanged:
- Expect c.$20 million net capex on PF-2 safety upgrades and maintenance, with the majority of the required equipment purchases and activity taking place in 2025 despite the deferral of the facility shutdown to Q2 2026, and $5-$10 million on production optimisation initiatives
- Continue to review plant initiatives to enhance production and improve reliability, including water handling
- Operating costs guidance of $50-$55 million and other G&A expenses guidance below $10 million unchanged
Kurdistan exports
- GKP continues to engage with government stakeholders regarding a solution to enable the restart of Kurdistan crude exports through the Iraq-Türkiye Pipeline
- The Company remains ready to resume oil exports provided we have agreements on payment surety for future oil exports, the repayment of outstanding receivables and the preservation of current contract economics
2025 AGM
Gulf Keystone is today hosting its 2025 AGM at 10 A.M. CET (9 A.M. BST) via webcast. It will not be possible to attend the meeting in person but all registered Gulf Keystone shareholders are invited to view the webcast at the following link: http://meetnow.global/gkpagm2025. Joining instructions are available on Gulf Keystone's website: https://www.gulfkeystone.com/investors/agm.
The AGM will be hosted by David Thomas, Non-Executive Chair, and will include a presentation by Jon Harris, Chief Executive Officer, and Gabriel Papineau-Legris, Chief Financial Officer. A copy of the presentation will be available to view on the Investors section of Gulf Keystone's website (https://www.gulfkeystone.com/investors/presentations). A recording of the presentation will also be available to view on the same page later in the day following the conclusion of the AGM.
Source: Gulf Keystone Petroleum
