23rd Oct 2015 15:00
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Friday said it has made USD26.4 million of interest payments on schedule.
The company has paid a total of USD26.4 million in interest payments that were due in October on its USD250.0 million, 13% notes due in 2017 and its USD325.0 million, 6.25% notes also due in 2017.
"Following the coupon payments, the company confirms it is in full compliance with all terms and conditions of its guaranteed notes and convertible notes agreements," it said.
Following the payments, Gulf Keystone has a cash balance of USD48.4 million.
"As per the terms agreed during the April 2015 consent solicitation, today's announcement concerns a technical requirement to notify holders of the guaranteed notes that our cash balance has been below USD50 million for over five consecutive business days," said Chief Financial Officer Sami Zouari.
"In practice, we are pleased to have recently met our debt obligations with the USD26.4 million interest payments and we continue to manage expenditure prudently, working to restore value in the business and continuing a constructive dialogue with all our stakeholders," he added.
The company added the Shaikan field in Iraq continues to perform well as talks continue to try and establish a regular payment system for its oil it exports out of Iraq from the Kurdistan regional government.
The government has made payments to Gulf Keystone over the last two months, but a formal system has still not been put in place after lengthy talks spanning back to 2014.
Gulf Keystone shares were down 2.1% to 28.64 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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