Gulf Keystone (LON:GKP) shares fell to their lowest since 2010 as the Kurdistan based oil firm revealed it is increasing security.
This measure, which GKP says is a precaution, comes amid heighted hostilities between the militant group now called Islamic State (formerly ISIS) and Kurdish forces in northern Iraq.
Reuters this morning reported that Islamic State had strengthened its foothold, capturing towns close to the Kurdish region, and following clashes near the semi-autonomous region’s capital Erbil.
Shares in London’s ‘marmite’ oil firm were down as much as 13% at 67p this morning.
At midday, GKP released a stock market statement telling investors that its operations - including production and oil trucking – remain safe and secure.
“While there is no immediate threat to any of the company's operations in the region, we continue to monitor the situation closely and operate with increased security as a precaution,” the company said.
Weak investor sentiment is not helped by the ongoing stand-off between Iraqi Kurds and Baghdad over oil exports or GKP’s recent high profile executive departures, most notably founder and CEO Todd Kozel.
GKP, in a separate statement, also announced to the stock market that it had appointed new non-executive directors Dr Joseph Stanislaw and Uthaya Kumar.