Gulf Keystone Petroleum (LON:GKP) told investors it “remains alert” to the escalating crisis in Iraq, while also saying its production growth continues as planned.
The Kurdistan based oil company is on track to achieve its goal of expanding production capacity to 40,000 barrels per day before the end of 2014.
Currently the group’s Shaikan field is producing 16,000 barrels per day, GKP said.
The production report comes a day after Kurdish troops took control of the strategically significant northern oil city of Kirkuk, and as the al Qaeda linked Islamic State of Iraq and the Levant (ISIS) militant group continues its advance towards Baghdad.
ISIS has already seized the cities of Mosul and Tikrit, as well as Iraq’s largest oil refinery in Baiji, and on the way to Baghdad it has reportedly taken control of other towns as well.
Iraqi officials have claimed that a fight back is being launched, and the US is said to be considering options to provide support.
The conflict has seen oil prices rise almost US$5 per barrel this week, and the potential geopolitical uncertainties have affected investor sentiment.
Gulf Keystone shares fell nearly 30% at one point, hitting a new year low of 72.25p on Thursday; currently the share trades at 85p.
Chief executive Todd Kozel said: "Our operations in the Kurdistan Region of Iraq 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.”