Gross average sales in September to date of c.28,800 bopd
At current volumes and prices, more than covering current monthly costs of $6 million

Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq (“Kurdistan”), is today providing an update on Shaikan Field local sales.

Since closure of the export pipeline and subsequent commencement of local sales on 19 July 2023, gross average monthly local sales of Shaikan crude have steadily increased: c.4,900 bopd in July, c.17,200 bopd in August and c.28,800 bopd between 1-24 September. Realised prices have continued to average around $30/bbl, in line with local market pricing.

Following recent agreements with buyers, GKP has ceased trucking operations and is injecting all crude sales into the pipeline for transportation to a local refinery in Kurdistan. The Company is receiving advance payments into its UK bank account for its net entitlement of 36% of gross sales revenue.

Current local sales volumes and realised prices enable GKP to more than cover its estimated monthly costs of around $6 million in H2 2023, while strengthening its financial position. The Company remains focused on preserving liquidity and continues to explore opportunities for further cost reductions.

Gross average sales are currently c.33,000 bopd and GKP is striving to increase sales volumes while prudently managing the start-up of wells that have been shut-in for several months and avoid traces of water. However, the continuity of local sales remains uncertain.