Gulf Keystone narrows half year losses on cost cuts

19th Sep 2013 07:36

Gulf Keystone Petroleum narrowed its first half losses as the oil and gas company kept a tight rein on costs.Loss after tax came to $26.4m, compared to the previous year's loss of $31.4m, reflecting a fall in administrative expenses to $19.3m from $34.1m. Loss per share fell to $0.03 from $0.04. Net cash outflow from oil and gas operations, after general and administrative expenses rose to $22.3m from $18.5m as the group invested in bring its Shaikan field to production.In June the company received approval from the Ministry of Natural Resources of the Kurdistan Regional Government for its Shaikan Field Development Plan (FDP). A month later the first Shaikan production facility, capable of producing 20,000 barrels of oil per day (bopd), was fully commissioned in July.Gross production from Shaikan PF-1 between July and September totalled 183,000 barrels, with 179,063 barrels sold into the domestic market."As a result of having the Shaikan FDP approved, and in line with the Kurdistan regional government's stated production targets for the Shaikan discovery, we are delighted to have entered the first phase of commercial production, which was eagerly awaited by the company's shareholders," said Chief Executive Officer, Todd Kozel. "It is an important milestone and another highlight of the four years of hard work since striking oil in August 2009."Construction of the second Shaikan production facility, capable of producing 20,000 barrels of oil per day, is ongoing with mechanical completion expected in October 2013, followed by production operations by the end of the year. The group said the increase in production from Shaikan by the end of the year is expected to generate steady revenues.RD