Gulf Keystone widens 2012 losses

20th Jun 2013 08:47

Oil and gas company Gulf Keystone widened its annual losses, reflecting an increase in administrative expenses, interest arising on convertible bonds and a rise in taxes. Loss after tax for the year to December 31st 2012 came to $81.8m, up from the previous year's $62.4m. Loss per share fell to $0.1 from $0.08.At the end of the period the company had cash, cash equivalents and liquid investments totalling $262m, down from $237.6m in 2011.The group said it made significant progress last year in its operations spanning four blocks in the Kurdistan Region of Iraq, including its flagship Shaikan field. The currently in transition from the appraisal phase to the staged large-scale development of the field. The five-well appraisal programme for the Shaikan field was completed in August 2012, after the Shaikan-4, -5 and -6 appraisal wells were drilled. Shaikan-4 achieved the best results with aggregate flow rates of 24,000 barrels of oil per day (bopd) in the course of the well testing programme in April 2012. The company plans to complete two production facilities at the field capable of producing, in aggregate, 40,000 bopd by the end of 2013, drill its first development well and continue exploration of the resources of the Shaikan structure. "Gulf Keystone is entering a new stage of its development as it matures from a proven oil explorer to a significant producer in the Kurdistan Region of Iraq," said Todd Kozel, Executive Chairman."The phased development approach to the implementation of the Shaikan FDP will enable Gulf Keystone to achieve a significant ramp up of production by the year end, whilst ensuring the company retains flexibility in financing the development of this giant field and bringing us closer to the goal of fully financing our activities from production cash flows."Shares declined 1.32% to 149.50p at 09:47 on Thursday. RD