Britain’s Sunday Telegraph understands that the Iraq-focused oil explorer Gulf Keystone (LSE: GKP) intends to move its listing from London’s junior ‘AIM’ market to the main London Stock Exchange (LSE).
With a market capitalisation of over £700m ($1.1bn) it has grown much larger than the market’s usual members.
A move to the LSE’s Official List, rumoured to be by the end of the first quarter of 2011, would automatically propel it into the mid-cap FTSE 250 index.
The shares are consistently in the top 10 most traded on the stock exchange, and the company has been rumoured to be a takeover target.
Last week, Mr Todd Kozel, Gulf Keystone’s co-founder who earned $2.6m (£1.7m) last year, said the oil explorer may have to raise more funding before the year is out, even after raising $189m in the first six months of the year.
The company’s fields are believed to hold between 1.9bn and 7.4bn barrels of oil and it hopes to increase production in Kurdistan to 8,000-10,000 barrels per day by the year end.
The shares closed up 15% on Monday.
(Source: Sunday Telegraph)