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Gulf Keystone Petroleum Ltd (GKP)
Gulf Keystone targets 222% production increase
By Julie Fisher | Thu, 10th October 2013 - 10:05
Shares in Gulf Keystone Petroleum (GKP) were given a 4% boost by news production had resumed at the Shaikan oilfield in the Kurdistan region of Iraq.
Commercial production originally began at the field in mid-July, and 183,000 barrels of oil had been produced by 1 September, but production was suspended on 4 September "at the request of the competent authority for reasons not connected with the company".
The Ministry of Natural Resources of the Kurdistan Regional Government has now given permission for production to recommence, and Gulf Keystone plans to ramp up production from the first production facility (PF-1) to 20,000 barrels of oil per day (bopd) as quickly as possible.
When production was suspended, PF-1 was producing at a rate of 12,400 bopd.
Gulf Keystone also plans to complete construction of a second production facility (PF-2), which will add a further 20,000 bopd of production capacity.
If 40,000 bopd were achieved it would represent a 222% increase on the production rate being met prior to suspension.
Many users on the Interactive Investor Gulf Keystone discussion board were frustrated at the lack of information contained in the update, asking for details on the current production rate and a timeline for increasing production from PF-1 and PF-2.
'Buriram9' commented: "The company certainly doesn't go out of its way to talk itself up in RNS [updates], always seems it just states the bare minimum under the rules."
However, others were pleased with the update and irritated at some investors' demands.
'Agrigento' complained Gulf Keystone "just can't win", adding: "It's natural that with every RNS comes more questions and more theories."
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