Gulf Keystone Rises Most in Two Weeks on Kurdistan Output

Jun 13, 2014 12:23 pm ET

(Updates with closing share price in second paragraph.)

June 13 (Bloomberg) -- Gulf Keystone Petroleum Ltd., an oil producer in Iraq’s Kurdistan region, gained the most in two weeks after saying production from its key asset was proceeding as planned.

The company advanced 1.9 percent to 81.5 pence at the close in London. That’s the biggest gain since May 30, valuing the company at 724 million pounds ($1.2 billion).

Gulf Keystone expects production from Shaikan to rise to 40,000 barrels of oil a day by the end of the year, the Hamilton, Bermuda-based company said today in a statement. The shares had lost 14 percent this week through yesterday, amid concern violent unrest in Iraq could spread toward the region.

The company’s operations “are progressing in line with our previous guidance, whilst we remain alert to the current security situation in Iraq, which has recently escalated outside the Kurdistan region,” Todd Kozel, chief executive officer, said in the statement.

Eight cargoes have so far been sold into the international market, it said.