LONDON (ShareCast) - (ShareCast News) - Gulf Keystone Petroleum was under pressure after it said the current low oil price environment and the political situation Iraq cast significant doubt on the group's ability to continue as a going concern, although it posted a narrower loss for 2015.
The oil producer, which focuses on the Kurdistan region of Iraq, reported a pre-tax loss of $135m (£93.7m) compared with a $248.2m loss in 2014 as revenue rose to $86.2m from $38.6m.

Impairments fell significantly, to $3.6m from $144.1m the previous year, while administrative expenses edged down to $31m from $39m.

Gulf Keystone said gross production rose 71% from 2014 to 11.1m barrels of oil, with an average of 30,500 barrels of oil per day.

The main cause for concern, however, was Gulf's warning that a financing deal did not look likely anytime soon, mainly due to weaker oil prices.

In February, Gulf announced a strategic review of its financing options, which included discussions with a number of interested parties in relation to possible asset transactions or a corporate sale.

"Over the course of 2015 and to date, interest has been expressed by various parties. While there are ongoing discussions with them, we believe given the current sector dynamics (low and volatile oil prices and geo-political issues in the region), a transaction is unlikely in the near term," it said on Thursday.

The group faces material uncertainties relating to its ability to meet the significant coupon payments in April and October 2016, as well as the debt repayment of $250m in April 2017 and $325m in October 2017.

Still, chief executive officer Jon Ferrier expressed confidence in the business.

"Against a well-publicised challenging backdrop, both across the industry and in the region, the team is actively managing all aspects of the business over which we can assert control," he said.

"In the interest of all stakeholders, strenuous efforts are currently underway to strengthen the balance sheet, not only to ensure our ability to remain as a going concern, but also to be able to provide new capital to increase production and as a solid foundation for the longer-term future of the company. I look forward to delivering a stronger business in 2016 with stable production, commercial discipline, value realisation and growth."

At 1300 GMT, Gulf Keystone shares were down 13% to 10.43p.

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