Given that Gulf Keystone Petroleum Ltd (LON:GKP) severely diluted equity holders with its recent financial restructuring, swapping some US$500mln of debt for new shares in October, the loyal investors still holding shares will be hoping the worst is now over.
As GKP releases results for 2016 on Thursday eyes will be on production volumes, realised oil prices as well as commentary regarding crude transportation and payments.
GKP boss Jon Ferrier is seemingly in increasingly positive mood, according to oil companies expert Malcom Graham Wood.
“The winds they are a changing, around at New Fetter Lane but the main asset, Shaikan is certainly not, it is still a high quality asset with significant growth potential,” he said in his blog this week, following a meeting with the company.
“The reserves which are 622 mmbbl of 2P give current stable production of 40/- b/d and with investment that figure could and should grow to a much higher number.”
“Effectively under new management and after last year’s refinancing with a balance sheet that actually has net cash GKP is in a stronger position, albeit having wiped out most of the equity holders which they would be minded to remember.
“KRG payments for their oil have been regular and adequate and means that in due course they will be able to contemplate further investment to increase production, but this time they will do things in the right order one hopes.”
Thursday’s announcements
Final Results: Zegona Communications Plc (LON:ZEG), PureTech Health Plc (LON:PRTC), M.P. Evans Group PLC (LON:MPE), Gulf Keystone Petroleum (LON:GKP), Electrical Geodesics (LON:EGI).
Trading Statement: Homeserve PLC (LON:HSV), Electrocomponents PLC (LON:ECM).