Shares in Gulf Keystone Petroleum (GKP) plunged 30 percent to a new low following the mid-morning announcement of details of fundraising and investment options:
Gulf Keystone today publishes further details on potential interim investment scenarios to build a common foundation for stakeholder discussions on the Company's need for near-term fundraising, upcoming debt obligations and possible restructuring of the Company's balance sheet.
In this context Gulf Keystone announces, following discussions with the Company's advisors, its current intention to utilise the grace periods for the upcoming 18 April 2016 coupon payments in respect of its Convertible Bonds and Guaranteed Notes, which expire on 2 May and 3 May 2016, respectively.
Without additional capital expenditure Shaikan wells may begin to exhibit natural declines later in 2016. The potential interim investment scenarios aim to maintain Shaikan production at 40,000 barrels of oil per day ("bopd") with an option to increase production to 55,000 bopd.
As communicated on 17 March 2016 in the 2015 Results Announcement, these scenarios have been developed to bridge to and complement the revised Shaikan Field Development Plan ("FDP") currently being reviewed by the Company's partners.
Commenting on today's announcement, Jón Ferrier, CEO said:
"The additional detail on the potential interim investment scenarios being released today ensures an orderly market, and represents an important step as we prepare to embark upon detailed discussions with stakeholders.
"We are working to achieve the best possible way to restructure our balance sheet. Addressing our funding needs will ensure the Company's longer term future and ability to continue developing the Shaikan field for the benefit of all our stakeholders."
(Sources: GKP, Yahoo!)