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LONDON (Alliance News) - Iraq-focused oil producer Gulf Keystone Petroleum Ltd on Thursday detailed a series of investment scenarios as a way to build a foundation for upcoming talks with shareholders on its financial position.
Gulf Keystone is set to hold talks with its shareholders on securing near-term funding, on its upcoming debt obligations and a possible restructuring of its balance sheet.
Following talks with its advisers, the company said it intends to use the grace period for the upcoming April 18 bond coupon payments, which will expire on May 2 and May 3.
Gulf Keystone said that, without further investment, its Shaikan field in the Kurdistan region of Iraq will likely start to show natural output declines towards the end of 2016.
The investment scenarios the company has tabled would allow it to maintain production at Shaikan at 40,000 barrels of oil per day, with an option to increase this to 55,000, it said.
"The additional detail on the potential interim investment scenarios being released today ensures an orderly market, and represents an important step as we prepare to embark upon detailed discussions with stakeholders," said Jon Ferrier, Gulf Keystone's chief executive.
"We are working to achieve the best possible way to restructure our balance sheet. Addressing our funding needs will ensure the company's longer term future and ability to continue developing the Shaikan field for the benefit of all our stakeholders," he added.
Gulf Keystone shares were down 13% to 6.1 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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