By John Lee.
Gulf Keystone Petroleum (GKP) has announced its intention to commence a share buyback programme, using the company's existing cash resources to make market purchases of Gulf Keystone common shares for a maximum consideration of US$25 million, with the first stage of that programme being initiated now to purchase Gulf Keystone shares for an initial amount of US$15 million.
The buyback programme is aligned with the company's focus on capital allocation and will be an accretive use of funds whilst not impacting the company's ability to continue the execution of its existing investment programme. It will be executed in accordance with the company's general authorities to make on market purchases which was approved by shareholders at the company's AGM on 21 June 2019.
The company has entered into an agreement with its brokers Canaccord Genuity Limited and Peel Hunt LLP to carry out purchases of the Initial Amount under the buyback programme on its behalf on an irrevocable and non-discretionary basis.