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10 Sep 2019 | 10:03

Gulf Keystone Petroleum resumes share buybacks; but lowers guidance amid disruptions and delays

Gulf Keystone Petroleum said it would resume its share buyback programme even as it lowered its near-term output guidance and reported a fall in half-yearly profit.

The company said it was resuming its buyback programme for the remaining $10m after the first tranche of $15m was completed on 30 Aug. Near-term production guidance for the full year was reduced to between 30,000 to 33,000 barrels of oil per day (bopd), compared with previous guidance of 32,000 to 38,000 bopd. The company pinned blame on a delay to the drilling campaign, the postponement of the ESP workover campaign and the planned shutdown of production facility PF-2 in October. For the half year ended 30 June 2019, pre-tax profit fell to $24.1m from $26.5m a year earlier as revenue slipped to $95.6m from $116.2m a year earlier. Growth in activity required to bring production to 55,000 bopd led to an increase in cash operating costs and cash operating costs per barrel in line with previous guidance to $18.4 million (H1 2018: $14.1million) and $3.9/bbl (H1 2018: $3.0/bbl) respectively. 'Despite some operational delays, we have made considerable headway towards our 55,000 bopd production target. Activity has further increased during H2 2019 as we remain on track to achieve this milestone in the first half of 2020m; the company said.

At 10:03am: (LON:GKP) Gulf Keystone Petroleum share price was -7.5p at 235.5p

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