The share price of Gulf Keystone Petroleum (GKP) lost further ground after the Kurdistan-focused oil producer revealed a heavily discounted fundraising. GKP raised $40.7m (£27.3m) through a firm placing at 32p a share with both new and existing institutional investors. Prior to the placing, GKP had a cash balance of $86m and $575m of debt in convertible bonds. GKP is looking to amend the trust deed governing the notes, which fall due in 2017.
The frontier driller remains in negotiations with parties in regard to a partial asset sale, or perhaps a deal to hive off the entire company. A stumbling block remains the outstanding monies owed to GKP by Kurdish authorities -- a consequence of a long-running royalty dispute with the government in Baghdad. However, the Iraq budget was rubber-stamped in February, which could eventually facilitate regular export payments in 2015 - time will tell.
GKP also announced that Simon Murray is to step down as chairman, and is being replaced by independent director Andrew Simon until a permanent replacement can be found.
