Gulf Keystone Petroleum Limited’s (LON:GKP) lenders have overwhelmingly supported the troubled oil firm’s proposed restructuring.
As reported by Proactive Investors yesterday there has been a willingness among the debt holders to support Gulf Keystone’s management team.
In a statement this morning Gulf Keystone confirmed that 90% of the guaranteed noteholders have voted to accept the proposal, and 84% of the convertible bondholders also gave their approval for the restructuring which will see US$500mln of debt swapped for new shares in the company.
The votes will be ratified at meetings in London this morning.
Gulf Keystone highlighted that the restructuring, which also includes a fresh US$25mln fundraise, was “on track” and is expected to complete on or around October 14.
Jón Ferrier, Gulf Keystone chief executive, told investors that the company will soon be in “the strongest position it has been in for a number of years” once the restructuring has been secured.
“Upon completion of the restructuring we will be able to effectively relaunch Gulf Keystone,” he said.
“We will benefit from an enhanced balance sheet, a well understood field which continues to perform above expectations and a clear path to significantly increasing production and growing value over time.”
On operational matters, Gulf Keystone revealed that the Shaikan field averaged 33,000 barrels of oil per day as output was restricted through February and March due to a lack of upstream pipeline availability.
Despite the regional infrastructure issues, Gulf Keystone described the production performance as “strong” with rates between 36,000 and 40,000 bopd, and it said it remained on track to deliver its full year target of 31,000 to 35,000 bopd.
The new cash raised in the restructuring is earmarked for maintenance and investment which is expected to protect Shaikan from decline, with output rates anticipated at around 40,000 bopd as a result.
Gulf Keystone said it generated positive cashflow of US$46.7mln in the six months ended June 30, and it received US$97.5mln of gross payments for Shaikan crude from the Kurdistan Regional Government.
It added that revenues of US$102.1mln were recognised in the first half, comprising US$51.2mln related to previously unrecognised revenue arrears and US$50.9mln for oil liftings in 2016.
Gulf Keystone’s remaining share of revenue arrears was estimated at US$28mln.
A US$25.8mln gross profit was reported, though there was a US$40mln impairment relating to the Sheikh Adi and Ber Bahr blocks which have been relinquished by the company.
Overall the group’s post tax loss amounted to US$59.9mln, compared to a US$77mln loss in the first six months of 2015.