Gulf Keystone Petroleum Ltd.: Operational & Corporate Update

DJ Operational & Corporate Update

Gulf Keystone Petroleum Ltd (GKP) 
Operational & Corporate Update 
22-Jan-2026 / 07:00 GMT/BST 
 
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22 January 2026 

Gulf Keystone Petroleum Ltd. (LSE: GKP) 
 
("Gulf Keystone", "GKP", "the Group" or "the Company") 

Operational & Corporate Update 

Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq ("Kurdistan"), today 
provides an operational and corporate update. The information contained in this announcement has not been audited and 
may be subject to further review. 

Jon Harris, Gulf Keystone's Chief Executive Officer, said: 
 
"2025 was a strong year for GKP, with production towards the top end of our tightened guidance range. Capex and cost 
discipline helped deliver material free cash flow generation underpinning USD50 million of dividend payments. Kurdistan 
pipeline exports restarted in September 2025 after over two and half years and regular exports liftings and associated 
payments, which commenced in Q4 2025, have continued into 2026 following a smooth extension of the interim agreements. 
 
Looking ahead, we expect 2026 to be a pivotal year. Assuming continued consistent exports payments and a return to 
international prices, we intend to swiftly resume drilling later in the year. This will position us to organically grow 
production in 2027 as additional volumes from the installation of water handling are also expected to come on stream. 
We will remain disciplined, coupling incremental capital investments with shareholder distributions to continue 
delivering value for all stakeholders." 
 
Operational 
 
 -- 2025 gross average production of 41,560 bopd, towards upper end of tightened annual guidance range of 40,000 - 
  42,000 bopd and a 2% increase versus the prior year (2024: 40,689 bopd) 
   - Resilient performance despite trucking and security related interruptions from June to August accounting for 
    losses of c.1.3 million barrels, or c.3,500 bopd annualised 
   - Successful transition from trucking sales to pipeline exports via the Iraq-Türkiye Pipeline ("ITP") on 27 
    September 2025, with volumes quickly ramped up towards full well capacity 
 -- 2026 year to 20 January gross average production of c.40,600 bopd 
   - Production expected to ramp up towards 44,000 bopd following the recent restart of a well post jet pump 
    replacement and the completion of ongoing well workovers 
 -- Zero Lost Time Incidents ("LTIs") for over three years, with c.5.3 million working hours since the last LTI, 
  underlining the Company's continued commitment to high standards of safety 
  
 
Financial 

 -- Total cash collected for 2025 crude sales of USD122 million (2024 revenue receipts: USD144 million) 
   - USD108 million proceeds from local sales during the first nine months of the year, paid in advance 
   - USD14 million proceeds from export sales in September and October 2025 received in December 2025 
   - Cash received for 2025 exports sales of c.USD30/bbl, an increase relative to the average realised price of USD28/ 
    bbl for 2025 local sales 
   - In addition to the above, the Company is accruing a receivable for exports sales under the interim agreements 
    to account for the differential between realised prices for cash received to date and the expected 
    reconciliation to international prices 
 -- 2025 capital expenditure and costs in line with annual guidance 
   - 2025 net capex of USD34 million (2024: USD18 million), primarily reflecting PF-2 safety upgrades, well workovers 
    and initial expenditure on the installation of water handling facilities at PF-2 
   - 2025 operating costs of USD53 million (2024: USD52 million), with gross Opex per barrel of USD4.3/bbl (2024: USD4.4/ 
    bbl), primarily reflecting the slight increase in production 
   - 2025 other G&A expenses below USD10 million (2024: USD11 million) 
 -- USD50 million returned to shareholders in 2025 through semi-annual dividend payments in April and September 
 -- 2025 year-end cash balance of USD78 million (31 December 2024: USD102 million) and no debt 
   - Cash balance as at 21 January 2026 of USD88 million which includes recent exports sales payments 
Outlook 
 
 -- Regular liftings and payments for International Oil Companies ("IOC") crude exports continue following the recent 
  extension of the interim agreements to the end of March 2026 
   - International independent consultant appointed and progressing its review of IOC invoices and contractual 
    costs, expected to be completed during the extended term of the interim agreements 
   - A reconciliation to full PSC entitlement at international prices and the negotiation of longer term exports 
    agreements continue to be anticipated following the completion of the review 
   - The Company continues to advance its negotiations with the Kurdistan Regional Government ("KRG") regarding a 
    number of historical Shaikan commercial matters, including the settlement of past oil sales arrears and other 
    KRG-related assets and liabilities, and will provide an update in due course 
 -- 2026 gross average production guidance of 37,000 to 41,000 bopd 
   - Reflects planned activity, including the estimated impact of the PF-2 shutdown later in 2026 of c.1,000 bopd 
    annualised, and natural field declines in the absence of drilling 
 -- 2026 net capex guidance of USD40-USD50 million, reflecting work programme focussed on protecting base production from 
  existing wells, upgrading the safety and reliability of the facilities and installing water handling 
   - USD5-USD10 million: Ongoing well workover programme focussed on offsetting field declines 
   - USD25-USD30 million: Programme of facilities upgrades at both PF-1 and PF-2 and recurring maintenance 
   - c.USD10 million: Remaining upfront expenditure to install water handling at PF-2, targeting incremental gross 
    production of 4,000 - 8,000 bopd above the anticipated field baseline at the beginning of 2027 
 -- Preparations are underway to restart drilling later in 2026; assuming consistent exports payments and a return to 
  international prices, the Company will proceed swiftly and update capex guidance as required 
 -- The Company expects 2026 net operating costs of USD55-USD60 million 
   - Primarily reflects higher local diesel costs following the restart of exports, increased usage of diesel in 
    well artificial lift & exports pumps and facilities maintenance related to the planned PF-2 shutdown 
 -- Expect 2026 other G&A expenses of less than USD10 million 
 -- The Company remains committed to returning any potential excess cash to shareholders via semi-annual dividend 
  payments and opportunistic share buybacks 
 -- Gulf Keystone continues to actively consider a potential listing of its shares on the Euronext Growth Oslo, subject 
  to favourable market conditions 
  
 
Investor presentation 

Gabriel Papineau-Legris, CFO, will be presenting today at Pareto Securities' 21st annual E&P Independents Conference. 
The presentation slides will be made available on the Company's website: 

https://www.gulfkeystone.com/investors/presentations/  

Enquiries: 

Gulf Keystone:                 [phone]   
 
Aaron Clark, Head of Investor Relations 
 
& Corporate Communications           [e-mail] 

FTI Consulting                 [phone] 
 
Ben Brewerton 
                      [e-mail] 
Nick Hennis 

or visit: www.gulfkeystone.com

Notes to Editors:

Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq. Further information on Gulf Keystone is available on its website www.gulfkeystone.com

Disclaimer

This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business. These statements are made by the Company and its Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.

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ISIN:     BMG4209G2077 
Category Code: MSCL 
TIDM:     GKP 
LEI Code:   213800QTAQOSSTNTPO15 
Sequence No.: 415670 
EQS News ID:  2263998 
  
End of Announcement EQS News Service 
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January 22, 2026 02:00 ET (07:00 GMT)