Gulf Keystone Petroleum falls despite upping production forecast

14th May 2014 13:10

Shares in oil and gas group Gulf Keystone fell on Wednesday despite it saying it expects to achieve an increase in production from the Shaikan PF-1 and PF-2 wells.The wells are expected to more than double from current levels of between 15,000-16,000 gross gross barrels of oil per day (bopd) to 40,000 bopd by the 2014 year-end. Average Shaikan production for the year to December 2014 is expected to be equivalent to approximately 20,000-25,000 gross bopd.In the first quarter of 2014, gross export deliveries from Shaikan by truck totalled 836,205 barrels. Gross domestic sales in the first quarter totalled 24,767 barrels, with sales realisations of $42 per barrel and further 7,163 barrels of gross domestic sales in April 2014. Production revenues are expected to increase significantly in the second half of the year. For the full-year, the company gave revenue guidance of between $150m to $180m, which it said reflects both current production levels and its view on the cash payment for crude, for which there will be a currently unspecified time lag between shipment and payment. The share price fell 5.24% to 93.10p by 13:40. NR