Shares in Gulf Keystone Petroleum are hugely volatile, and attract vast amounts of bulletin-board speculation. But the company seems to have done enough to steady nerves with a declaration that it has "no current intention" of raising cash to fund more exploration. We still think the prospects for its Kurdistan assets justify a buy rating, however hair-raising the ride.
Rumours had suggested a cash call at 160p a share, a 33 per cent discount to Gulf Keystone's share price at the end of April. Clearly agitated by the volume of speculation on internet bulletin boards, chairman Todd Kozel has instructed Gulf Keystone's legal team to "use all means necessary to protect our shareholders from malicious and unfounded attack".
The company also confirmed that negotiations continue with "several interested bidders" in relation to its 20 per cent stake in the Akri Bijeel block in Kurdistan.
