Gulf Keystone Petroleum, the Kurdistan-focused oil explorer, has sold 275m dollars of convertible bonds to fund development work at its Shaikan oil field.
The convertible bonds will carry a coupon of 6.25% and be issued and redeemed at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature on October 18th 2017.
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"This is the first time Gulf Keystone has accessed the debt capital markets, and the success of the offering demonstrates investors' confidence in the company's on-going move from appraisal to development of its world class Shaikan field and the maturing hydrocarbon profile of the Kurdistan Region of Iraq."
Shaikan is a major discovery with independently audited gross oil-in-place volumes of between 12.4bn barrels and 15bn barrels.
There has been continued speculation that the company might yet be acquired by one of the oil majors, yet it now stands fairly close to year lows at 201.5p having been as high as 425.25p in the past year.
CM
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