www.gulfkeystone.com
Gulf Keystone Petroleum Ltd. (AIM: GKP) is an independent oil and gas exploration and production company focused on exploration in the Kurdistan Region of Iraq. It holds a majority working interest in the Shaikan, Sheikh Adi and Ber Bahr exploration blocks and a further interest in the Akri-Bijeel block. Gulf Keystone is the Operator of the Shaikan and Sheikh Adi Production Sharing Contracts. Following a major discovery at Shaikan in 2009 and a discovery at Akri-Bijeel in 2010, the Company is undertaking an ambitious 2011-2012 exploration and appraisal programme across the four adjacent blocks. Gulf Keystone is also focused on continuing domestic oil sales and increasing oil export operations in order to move towards the Company’s production target of over 5,000 barrels of oil per day (“bopd”), increasing to 10,000 bopd thereafter.
Gulf Keystone shares hit new highs on bid speculation
Gulf Keystone Petroleum (LON:GKP) shares were trading at new highs this morning on speculation that US giant Exxon Mobil is lining up a bid.
A weekend report claimed the American oil firm had sounded out GKP over a £7 billion takeover, which would price the AIM-quoted stock at 800p a share.
It went on to say that GKP’s board would not accept such a deal and a number of other companies were monitoring the situation. The other potential suitors named by the Sunday Independent were Sinopec and Chevron.
At the time of writing, neither Gulf Keystone nor Exxon had commented.
In early trading, GKP shares gained as much as 53.5p, or 32 per cent, and were changing hands at 220p.
Last month it was reported that Exxon had signed contracts with the Kurdistan Regional Government for six blocks within the semi-autonomous region of Iraq.
While it was seen as a massive vote of confidence in the area, it was also seen as a potentially incendiary move which may provoke a political backlash from the Iraqi authorities in the south.
It comes at a delicate time as Baghdad and the KRG attempt to pass legislation that would support the award of these potentially lucrative oil and gas contracts in Kurdistan.
Of late, the region has become a magnet for mid-tier players such as Marathon, Hess (NYSE:HES) and Repsol (MCE:REP).
GKP was, however, one of the early entrants. Its exploration success in the past three years, principally the massive Shaikan oil discovery, has seen the firm grow into one of AIM’s largest companies.
Indeed, the firm’s corporate transformation is reflected by its plan, announced in September, to step up to London’s main market in the coming months.
