25th Feb 2015 09:40
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd shares rose early Wednesday after it confirmed it recently has held discussions with a number of parties about potentially selling the company and its assets.
Gulf Keystone shares were up 40% to 49.50 pence per share on Wednesday morning. Sky News had reported prior to the London market open that oil company would make such an announcement Wednesday.
The company, which operates the Shaikan field in the Kurdistan Region of Iraq, said that talks are preliminary and said there is no certainty as to the terms of any deal, should one go through.
Gulf Keystone said its cash balance stands at USD69.3 million as of Wednesday, and said it has also received an additional USD20.8 million from the government for sales of crude oil from the Shaikan field.
Earlier in February, Gulf Keystone temporarily suspended exporting its crude oil from the Shaikan project in Iraq whilst it reached an agreement for a more stable payment cycle from the government.
The company has appointed Deutsche Bank and Perella Weinberg Partners as financial advisers.
"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 Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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