Just last week, shares in Gulf Keystone rose sharply on improved sentiment regarding oil exports from Iraqi Kurdistan. The shares have since given up much of that gain, on fears of dilution from a new round of fundraising.
Details of the fundraising were announced on Tuesday. According to a statement from the company:
“Gulf Keystone Petroleum Ltd. (AIM: GKP; ADR: GFKSY), the independent oil and gas exploration company, announces that it has today completed a fully subscribed placing (the "Placing") of 152,300,000 new common shares of $0.01 (the "Placing Shares") at a placing price of 75p per share (the "Placing Price"), raising gross proceeds of approximately $165 million (£114.2 million). These shares were placed by Mirabaud Securities, Renaissance Capital, Fox-Davies Capital Limited and Madison Williams and Company with existing and new institutional shareholders. The net proceeds will be used to progress the remainder of its 2010 and early 2011 work programmes after receiving positive results from the early stages of its drilling campaigns in Kurdistan.”