No deal: Todd Kozel-led Gulf Keystone denies sale talk rumours
Gulf Keystone denies sale rumours
Gulf Keystone has insisted it is not in talks on a potential sale of the
company after press articles highlighted growing interest in the Kurdistan
region of Iraq and described the company as a likely takeover target.
Bill Lehane
30 August 2011 11:22 GMT
The London-listed firm is one of a number of international companies mounting
drilling campaigns in the semi-autonomous region.
In a statement, the company insisted that despite “clearly increasing interest
in the region”, the Gulf Keystone board was not in any discussions on any
possible sale for the company.
Todd Kozel, chairman and chief executive of Gulf Keystone, said the company
board was “confident that it has built an enviable asset base in Kurdistan,
with significant further upside potential.”
“We are therefore committed to continuing to successfully prove the potential
of our oilfields in Kurdistan,” he said.
The increased interest is thought to have been prompted by recent reports of
progress in reaching a political deal between Kurdistan and Baghdad, whch
has been locked in a long-running dispute over the proceeds of exploration
in the semi-autonomous region.
Shares in the company were up by 5.36% to £1.38 ($2.25) at 11.30 am in the
wake of today’s announcement to the market.
The company holds production sharing contracts for four exploration blocks in
the region, where it made its first discovery in 2009.
On 19 August, Investors Chronicle classed Gulf Keystone’s shares as a “buy”,
while also describing the company as a “likely takeover target.” It put the
company’s market value at £1.05 billion.
Kozel said GKP considered its value to be “significantly above any figures
quoted in recent press articles.”
Earlier this month, The Financial Times said analysts believed the Kurdistan
region was set to become “a hive of merger and acquisition activity,” since
most of the promising prospective land had already been bought up but new
players were eager to enter the market.
Kozel told the Sunday Times on 9 Augus that “as far as future licensing rounds
go, there are a few things still to go for. But the next round of
development in Kurdistan will be about consolidation.”