Gulf Keystone Petroleum delays Shaikan output ramp up target

Gulf Keystone Petroleum on Wednesday pushed back its 55,000 barrels of oil production target to early 2020 as the start date of the drilling campaign at Shaikan was extended to March 2019 from January amid delays in the delivery of equipment.

The company said it remained fully funded to complete the expansion to 55,000 bopd, with a cash balance of $294m as at 15 January 2019.

Gross capital expenditure guidance for the total 55,000 bopd project phase remains unchanged at $200m to $230m.

The company did, however, tout improved production for 2019 after revealing that annual production in 2018 had met the upper end of guidance.

'Given the active 2019 investment programme, particularly in new wells and workovers, the company anticipates improved production levels this year and expects gross average production guidance to be in the range of 32,000 - 38,000 bopd,' Gulf Keystone said.

Average gross production of 31,563 barrels of oil per day was achieved in 2018, at the upper end of the 27,000 to 32,000 bopd guidance, the company said.

At 10:24am: (LON:GKP) Gulf Keystone Petroleum share price was +5p at 214p