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.
Ewen Ainsworth, Gulf Keystone's Finance Director commented: "We are extremely pleased with the response received from existing and new investors to this important financing initiative.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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
-
December 2023 NS&I Premium Bond winners - check now to see what you’ve wonIf you hold money in NS&I Premium Bonds, you can check from today (2 December) to see if you have won in the December prize draw. Here’s how to check.
-
OpenAI – corporate drama unleashed
OpenAI, the firm behind ChatGPT, was in uproar as its boss was booted out, briefly snapped up by Microsoft and then brought back again.
