Gulf Keystone Petroleum set to raise £30m as sale talks proceed

Caitlin Morrison
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The Kurdistan-focused oil producer will raise much-needed funds through a share sale
OIL FIRM Gulf Keystone Petroleum will announce this week that it is to raise up to £30m through a share sale.

Investors will be asked to pay around 33p a share and the company’s bondholders have been asked to agree to changes to the conditions attached to the bonds in an effort to make the company more attractive to potential buyers.

The firm announced last month that it is in sales talks with a number of parties interested in buying either assets or the entire company. Deutsche Bank and Perella Weinberg have been appointed to advise on the potential sale.

The oil producer is reviewing its financing options after a year which has seen its share price drop by 63 per cent, mainly to do with difficulties the company has had in extracting payments from the Kurdistan government.

Gulf Keystone has also been hit by the fact that production at its Shaikan operation has been suspended since February, although it is likely to resume work at the site in the near future.

The company declined to comment yesterday.

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