Gulf Keystone Petroleum (LON:GKP) used a company presentation hosted by DNB Markets, Carnegie AS and SpareBank 1 Markets to outline its decision to proceed with a dual listing on Euronext Growth Oslo, alongside its existing London listing. Management said the move is intended to increase share liquidity, broaden the investor base, and improve access to capital markets, while the company is currently conducting a related offering.
Dual listing rationale and Oslo investor focus
CFO Gabriel Papineau-Legris said Gulf Keystone views Oslo as a natural market for oil and gas issuers, noting that Norwegian institutions and analysts already follow activity in the Kurdistan region of Iraq. He added that five of the company’s eight analysts are based at Norwegian banks and that Gulf Keystone regularly attends Oslo-based energy conferences.
Asset overview: Shaikan production history, costs, and reserves
CEO Jon Harris described Gulf Keystone as a “pure-play” operator in Kurdistan with a long operating history in the region. He said the production sharing contract (PSC) was awarded in 2007, the field was discovered in 2010, and first commercial production began in 2013.
Harris said the company averaged about 41,600 barrels per day in 2024, totaling just over 15 million barrels produced during the year. He added that the Shaikan field reached a milestone of 150 million barrels produced (cumulatively) in November 2024. As of the end of December 2024, Harris said the company reported 2P reserves of 443 million barrels in the Jurassic reservoir, which is currently the only producing horizon.
Management highlighted cost performance, with Harris stating operating costs of $4.3 per barrel and “low” general and administrative expenses. He also noted a safety milestone of three years without a lost-time incident, achieved in January.
The company said it has a market capitalization of about $540 million (about NOK 5.2 billion), is debt-free, and had a cash position of $88 million. Harris also pointed to $50 million of dividends paid in 2024, despite sales into the local market during part of the period.
2025 production guidance and near-term operational plans
Harris said the company has maintained production during a period without drilling, describing the last 2.5 years as a time when the company was diverted into local sales after a pipeline shutdown. For 2025, management guided to average production of 37,000 to 41,000 barrels per day. Harris said January production was around 40,000 barrels per day and that workovers were underway, with two wells returning online following tubing replacement and other work.
He also said the company anticipates a shutdown in late summer 2025 for safety tie-ins and critical well work, framing this as necessary to keep operations safe and maintain reliable production.
A key near-term project is additional water handling capacity. Harris said Gulf Keystone is pursuing a “lease-to-buy” arrangement for a water handling train to be installed at the second production facility, with commissioning targeted for late 2026 or early 2027. He said the added capacity would allow the company to produce some currently constrained wells harder, with an expected incremental increase of roughly 4,000 to 8,000 barrels per day once the equipment is online.
Harris said the company is tendering for a drilling rig, but that a return to drilling depends on continued export stability and improved realized pricing.
Export restart, pricing expectations, and key uncertainties
Papineau-Legris said Gulf Keystone entered interim agreements in September 2025 with the federal government of Iraq, the Kurdistan Regional Government (KRG), and other international oil companies to allow a return to exports via pipeline. He said the agreements have been operating as planned, with regular liftings at the Turkish port of Ceyhan occurring twice a month and payments being received under the agreed process.
Management said the interim agreements were extended for three months through the end of March 2026. Papineau-Legris added that an independent consultant appointed by the federal government is conducting a review of assets and contractual costs to validate entitlements, with completion expected by the end of the extended period.
According to management, the company currently receives about $30 per barrel on a cash basis under the interim arrangements—an improvement versus prior local sales. Papineau-Legris said Gulf Keystone believes this could rise to at least $45 per barrel based on $65 Brent, with potential further upside following the review process. He added that the company expects to receive a “top-up” payment related to sales since September 2025 once reconciliation is completed, and said Gulf Keystone continues to engage with the KRG regarding historical receivables as part of broader commercial discussions.
In the Q&A, management identified remaining uncertainty largely at a macro level, including political developments in Baghdad and the formation of a new government and budget law. Papineau-Legris said that, operationally, exports and payments had been consistent nearly five months into the process, aside from some delay in appointing the independent consultant.
Longer-term growth potential and shareholder returns
Harris said Shaikan has additional potential beyond the current Jurassic production, pointing to prospective Triassic and Cretaceous zones. He referenced neighboring operators producing from the Triassic and said Gulf Keystone sees similarities in its own appraisal well data. He also discussed the company’s desire to substantially reduce routine flaring and noted that, prior to the pipeline closure in 2023, a field development plan had been agreed with the Ministry of Natural Resources and a gas management/reinjection project had been under contract before being paused.
Looking ahead, Harris described a prior development ambition to increase production from roughly 45,000 barrels per day toward 85,000 barrels per day from the Jurassic, plus 10,000 to 20,000 barrels per day from the Triassic, alongside a flaring solution, subject to commercial conditions. He said the company’s reduced “cost pool” compared with 2023 could accelerate investment economics and that the focus would be more on drilling than on additional surface capacity, particularly once the water handling project is implemented. He said the company is reviewing plans and preparing for drilling, with a multi-well campaign conceptually involving 16 to 20 wells over multiple years, and noted management is targeting a return to growth in 2027.
On capital allocation, Papineau-Legris said management intends to continue balancing investment with shareholder returns, emphasizing the need for flexibility given past disruptions. He said the company will continue reviewing semi-annual dividends and may consider buybacks opportunistically, but expects to provide a more predictable distribution policy once it has consistent international price payments and better visibility on capital spending timing.
Management also addressed potential M&A in Kurdistan, suggesting that consistent exports and a return to international pricing could improve the ability to value assets and support deal activity, while emphasizing that any transaction would need to work for shareholders. In discussing investor feedback on the listing plan, Papineau-Legris said London-based shareholders have been broadly supportive, particularly around the goal of improving liquidity.
About Gulf Keystone Petroleum (LON:GKP)
Gulf Keystone Petroleum Limited engages in oil and gas exploration, development, and production in the Kurdistan Region of Iraq. The company operates Shaikan field that covers an area of approximately 280 square kilometers, which is located north-west of Erbil. It also provides management, support, geological, geophysical, and engineering services. The company was incorporated in 2001 and is based in Hamilton, Bermuda.
