Gulf Keystone share price jumps 71 per cent as it confirms sale

Jessica Morris
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Gulf Keystone's share price rocketed (Source: Getty)

London-listed oil producer Gulf Keystone's share price rocketed today after the company confirmed sales talks, amid an ongoing dispute with the Kurdistan regional government over late payments for its oil exports.

Shares in Iraq-focused Gulf Keystone jumped 71 per cent to trade around 60p per share this morning.

The company said it had held discussions with interested parties over the potential sale of assets in Kurdistan, having been forced to suspend oil exports there earlier this month, and could even sell the whole company.

Stakeholders are advised that these discussions are preliminary and, as such, there can be no certainty that any offers will be received and any transaction concluded, or any certainty as to the terms on which any offer might be made. Further announcements will be made by the company as and when appropriate.

Concurrently, and in view of strategic discussions and its current liquidity position, and with the intention of meeting its existing debt payment obligations, the company is undertaking a review of its financing options and in that context will engage in discussions with its key stakeholders.

Gulf Keystone said it has a cash balance of $69.3m (£44.7m), and will add a $26m gross payment for crude oil sales from its Shaikan field in the Kurdistan region of Iraq.

The company has been battling with the Kurdistan regional government over payments it owed for oil exports. In December it signed an agreement with the government to foster a more stable payment cycle.

It's also been hit by the global oil price rout, which has caused the price of the black stuff to halve since July last year.

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