Gulf Keystone introduces $20m reward, $10m share buyback

Gulf Keystone Petroleum introduced a $20m acting reward and the launch of a share buyback program well worth approximately $10m on Tuesday.

The London- provided independent oil driver in the Kurdistan area of Iraq claimed it was remaining to produce complimentary capital, driven by durable need for crude from its Shaikan Field, where ordinary manufacturing got to 48,500 barrels daily in September and 45,900 barrels daily this month until now.

Despite unpredictabilities in neighborhood sales and an upcoming upkeep closure in November, became aware costs for Shaikan unrefined stayed steady at $27 to $28 per barrel.

As of 7 October, Gulf Keystone held a cash money equilibrium of $110m.

The business claimed its upgraded strategy to investor circulations would certainly see it analyze its ability to state acting returns semi-annually, with share buybacks taken into consideration opportunistically.

Gulf Keystone’s emphasis stayed on stabilizing investor returns with the demand to money necessary financial investments in the Shaikan Field and getting ready for the resumption of Kurdistan oil exports.

The $20m acting reward would certainly be paid on 31 October, equal to 9.216 United States cents per share.

Shareholders might choose to obtain the settlement in either sterling or bucks.

Additionally, the business’s buyback program, which would certainly be carried out on the London Stock Exchange by brokers Canaccord Genuity and Peel Hunt, was readied to begin instantly and run till 31 December, or till the optimum quantity of $10m was gotten to.

All bought shares would certainly be terminated to decrease the business’s funding.

“We have long recognised the importance of distributions to Gulf Keystone shareholders and we were pleased to be able to restart returns of excess cash earlier in the year with free cash flow generation from local sales,” claimed ceo Jon Harris.

“As our liquidity remains to boost, we are today laying out an upgraded strategy to investor circulations in the existing neighborhood sales setting, that includes strategies to examine the business’s ability to state an acting reward on a semi-annual basis around our complete year and fifty percent year results.

“In line with this approach, we have decided to declare a $20m interim dividend and initiate a share buyback programme of up to $10m.”

At 1052 BST, shares in Gulf Keystone Petroleum were up 6.8% at 135.74 p.

Reporting by Josh White forSharecast com.