Keystone Petroleum shares plunged nearly 17 per cent yesterday as investors remained unconvinced by the company’s update on oil drilling in the Kurdistan region of northern Iraq.
Stocks in the Aim-listed company fell 47p to 240p despite its statement that its Shaikan-4 appraisal well, in particular, was giving “excellent” results.
Analyst Dougie Youngson, of Seymour Pierce, said: “Overall these are a mixed set of operational results for the company. The company is clearly making progress at Shaikan, but we had been expecting more of an update at Ber Bahr-1 which may result in the market being slightly disappointed.
“We also note that CEO Todd Kozel [pictured] was interviewed... where he discussed the independence of the company. He stated that in the short to medium term GKP would remain independent, but also stated that in the longer term that this may not continue to be the case.”
Gulf Keystone shares have seen volatile trading in the last year, with a low of 100.75p and a high of 425.25p.