Gulf Keystone shares rise despite slashed output forecasts

Shares in Gulf Keystone rose despite the company slashing production forecasts ahead of its annual general meeting.

At 10:15 shares in the company, which operates the Shakan field in Iraq, had risen by 3.71% to 33.71p.

Gulf Keystone said while in past two months it had produced on average 38kbopd, it now expected production would remain within the range of 36-46kbopd between now and the end of the year.

The reduction in guidance for the rest of the year was to take into account potential offtake and market constraints, the company said.

The reduced guidance and the companies five week suspension of production operations at the end of the first quarter of the year meant the daily production average for the year was expected to be between 30-34kbopd.

Gulf Keystone chief executive Jón Ferrier the company was working towards establishing a regular payment cycle for crude oil sales from the Shaikan field.