Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Gulf Keystone Petroleum Limited (GKP) Records Higher Than Expected Loss

LONDON — Gulf Keystone Petroleum Limited (LON:GKP) — an oil and gas exploration and production company with operations in the troubled Kurdistan Region of Iraq — released its annual results for 2012 this morning.

While a loss was inevitable, analysts had predicted it would be less than in 2011. Unfortunately, that was not to be, and Gulf Keystone Petroleum Limited (LON:GKP) recorded a loss after tax in 2012 of $81.8 million, over 30% worse than the previous year’s $62.4 million. Perhaps as a result, its share price is currently 2% down at 148.5 pence.

Operational highlights of 2012 included a total production of 1.14 million barrels gross from the Shaikan Extended Well Test facility, the start of commissioning of the first Shaikan production facility (PF-1), replacing the EWT, and which will be capable of producing 20,000 barrels of oil per day (bopd), and the start of construction of second Shaikan production facility (PF-2), with commissioning anticipated by the end of 2013.

Elsewhere, there was the discovery of Jurassic oil in the Sheikh Adi-2 exploration well, a new Triassic oil discovery at Bakrman-1 in the Akri-Bijeel Block, and a 300 meter oil column in the Jurassic found in the first exploration well in the Ber Bahr Block.

Looking ahead, Gulf Keystone Petroleum Limited (LON:GKP) intends to increase production from the Shaikan PF-1 and PF-2 up to 40,000 bopd by the end of 2013, prepare for the export of oil from the Shaikan field to reach 150,000 bopd, and move the company from AIM to the “standard segment” (previously known as a “secondary listing”) of the Official List of the London Stock Market, preparatory to ultimately gaining a Premium listing.

Commenting on the results, Todd F Kozel, the combined Executive Chairman and CEO of Gulf Keystone Petroleum Limited (LON:GKP), said:

Gulf Keystone Petroleum Limited (LON:GKP) 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.

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, while 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.

We are fully funded for our current work program for 2013 and believe that Gulf Keystone is well positioned to realize the full potential of our multi-billion barrel resources.

Although up an impressive 450% over the past five years, Gulf Keystone Petroleum Limited (LON:GKP)’s share price is down over 12% over the past year, and close to 16% in 2013. With the outcome of its legal battle with Excalibur Ventures still pending, where Gulf Keystone’s share price will go over the rest of 2013 remains in the balance.

The article Gulf Keystone Petroleum Records Higher Than Expected Loss originally appeared on and is written by Jon Wallis.

Jon Wallis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!