OIL AND gas explorer Gulf Keystone yesterday said it has restarted production at its Shaikan oil field, after receiving approval from the Kurdistan government.
The Aim-listed firm is aiming for production in the Kurdistan field to reach 40,000 barrels of oil per day (bopd) by the end of the year.
“Gulf Keystone has restarted the early production facilities after more than a month’s stoppage and should be up to around 12,000 bopd within a few days,” said Will Forbes, analyst at Edison Investment Research.
“Resumption of oil sales will enable the company to generate revenues to help fund further development of the massive field.”
Brokers have previously been sceptical that GKP would reach its target of 40,000 bopd by the end of the year but chief executive Todd Kozel told City A.M. last month that he felt “very confident” that the target would be hit.
A legal dispute which had blighted GKP for years ended last month, after an English court dismissed all claims by Excalibur Ventures, which argued that it was owed a 30 per cent interest in GKP’s assets in the Shaikan field.
Gulf Keystone’s shares closed 5.6 per cent higher yesterday at 181p.