- Gulf Keystone Petroleum said it would launch a further $25m share buyback programme and confirmed it was on track to meet production.

'With a robust cash position and the company's confidence in its delivery of the Shaikan project, a second share buyback programme for a further $25m has been approved and an initial tranche of $15m will be initiated today,' the company said.

For the year up to 30 November, average gross production of 32,127 barrels of oil per day (bopd) and gross production in November averaged 40,582 bopd, with current production rates from the field at about 42,000 bopd.

The company hailed 'significant' progress on a number of fronts; with the 'successful addition of SH-12 to the PF-2 production inventory and drilling of the gas appraisal well SH-9 where operations continue.'

While the imminent start of export through the PF-1 pipeline meant all production from Shaikan would now be exported directly through pipeline, benefitting 'safety, reducing environmental impact and improving netbacks,' it added.

Gulf Keystone said it was on track to meet its original gross production guidance for 2019 of 32,000-to-38,000 bopd.

'We are pleased to confirm that we are on track to achieve our initial average production guidance for 2019, and whilst the need to side-track SH-9 has slightly impacted our timing guidance for delivering 55,000 bopd, we remain on course to achieve further significant production growth in 2020,' it added.

At 8:24am: [LON:GKP] Gulf Keystone Petroleum share price was +10.25p at 208.25p

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