Gulf Keystone Announces $10 Million Share Buyback Program Amidst Strong Local Sales

Gulf Keystone Petroleum Ltd., a prominent independent operator in the Kurdistan Region of Iraq, has launched a share buyback program targeting up to $10 million. The initiative aims to repurchase the company's common shares as its liquidity position continues to improve, influenced by robust local sales and a recent price increase per barrel.

As per Jon Harris, CEO, the company's year-to-date sales have averaged about 37,000 barrels of oil per day (bopd), with prices recently increasing to approximately $27 per barrel. This financial maneuver is in response to what the board perceives as a significant undervaluation of its shares relative to the intrinsic value of the Shaikan Field and its potential cash flow.

Operational updates indicate stable sales, with a notable boost in May reaching around 48,300 bopd. The company retains a cautious approach, maintaining the necessary liquidity to support substantial future value from potential Kurdistan exports while contemplating further shareholder distributions.

The buyback program will be conducted on the London Stock Exchange and has been structured to operate within established financial regulations, overseen by both Canaccord Genuity and Peel Hunt. This financial strategy aims to optimize shareholder return in anticipation of continued positive local sales and stable operational outputs.