DNO’s cash and share offer represents a 20% premium to the price at which Gulf Keystone proposed issuing shares to bondholders on July 14; the cash element of the proposal totals $120M.
DNO owns a 55% stake in Kurdistan's Tawke field, which produced an average of ~117.7K bbl/day of oil in May, while Gulf Keystone has a 75% interest in the Shaikan field, which has a production capacity of 40K bbl/day of oil.
Gulf Keystone Petroleum (OTCQX:GUKYF) says it is delaying ~$26M of bond payments due next week as low oil prices and disruptions in Iraq's Kurdistan region strain its finances; shares tumble to a record low 4.5 pence in London trading.
The company says it intends to use grace periods for payments on convertible bonds and guaranteed notes due on April 18, and that it plans to hold talks about fundraising and debt obligations.
Gulf Keystone says its Shaikan wells in Kurdistan need $71M of investment to maintain current production levels.
Gulf Keystone Petroleum (OTCQX:GUKYF -19.4%) says it is actively reviewing options to secure new funding and restructure its balance sheet amid “significant” doubts about its ability to continue as a going concern.
The Kurdistan-focused oil producer says it faces “material uncertainties” relating to its ability to meet "significant coupon payments” in April and October 2016, as well as debt repayments of $250M in April 2017 and $325M in October 2017.
“Strenuous efforts are currently underway to strengthen the balance sheet,” says Gulf Keystone CEO Jón Ferrier.
In its 2015 results, Gulf posted a $135M loss vs. a 2014 loss of $248, and $86M in revenues vs. $38M in 2014; 2015 gross production totaled 11.1M barrels of oil (30.5K bbl/day), up 71% Y/Y, and expects to produce 31K-35K bbl/day this year.
DNO says it received $30M as partial payment towards oil exported from the Tawke field, which will be shared with license partner Genel Energy, and Gulf Keystone received a $15M payment for crude oil export sales from the Shaikan field; Genel announced yesterday that the Taq Taq field partners had received a $30M payment from the KRG.
The payments appear to reflect an improvement and a regularity of payments which began in September.
Gulf Keystone Petroleum (OTCQX:GUKYF) says it received payment for exports from the Kurdistan regional government in Iraq for oil exports from its producing Shaikan heavy oil field.
The company says it received a net payment of $12M for its November invoice, and has received $86M in payments for exports YTD.
Third-party assessments show proved reserves in the Shaikan reserve area at 198M-306M barrels, 55% more than original estimates, while proved plus probable reserves increased by 114% to as much as 639M barrels.
Gulf Keystone Petroleum (OTCQX:GUKYF -7.4%) plunges as a deadline approaches for Kurdistan to make good on a pledge to pay regional oil producers, Bloomberg reports.
Gulf Keystone, Genel Energy (OTCPK:GEGYF) and DNO (OTCPK:DTNOF) are awaiting a November payment from the Kurdistan's regional government for the ~300K bbl/day they jointly produce, and failure to pay would undermine the companies’ finances and their ability to expand output.
Gulf Keystone says it remains in talks with the KRG and expects the next payment to be in line with those received in September and October.
Kurdistan-focused Genel Energy (OTCPK:GEGYF) lowers its production forecast for this year because of earlier delays in export payments, although it has now received two monthly payouts from the regional government.
Genel says it now expects to pump 85K-90K bbl/day in 2015, compared with a previous forecast of 90K-100K, and it narrows full-year guidance for capital spending to $150M-$175M from $150M-$200M and revenue to $350M-$375M from $350M-$400M.
The government paid Gulf Keystone $15M for exports of crude from the Shaikan field this month, following a similar payment in September and in line with pledges to resume regular compensation to international oil companies for exports from the region.
Genel Energy (OTCPK:GEGYF) chairman Tony Hayward says the payment situation has "turned a corner," as the increase of oil exports in recent months and independent sales from the Ceyhan oil terminal in Turkey have raised enough revenue for the government to cover its domestic budget as well as pay the oil companies.
Kurdistan said it allocated $75M of revenue from the sale of crude oil for payments; operators of the Taq Taq oil field, including Genel, will receive $30M with the same amount will go to Tawke field operator DNO (OTCPK:DTNOF), and Gulf Keystone expects to get $12M of $15M allocated for the Shaikan field, with the remainder going to its partners.
The payments would be the first scheduled compensation to companies that have been caught for years in a dispute over revenue sharing between Kurdistan and Iraq’s federal government.
The Kurdistan Regional Government says it will begin allocating part of revenue from oil exports to producers on a monthly basis from September to cover their running expenses, and may make additional revenue available to the companies to start paying dues for past exports as shipments rise next year.
The payments would be the first stable compensation for the companies’ exports, which have been caught for years in a dispute over revenue sharing between the KRG and Iraq’s federal government.
Gulf Keystone Petroleum (OTCPK:GUKYF, OTCQX:GFKSY) appoints Jon Ferrier, a senior VP for business development at Maersk Oil, as its new CEO, replacing John Gerstenlauer, who will leave the job later this year.
Kurdistan-based Gulf Keystone promoted Gerstenlauer from COO in July last year, and the company credits him with achieving its operational target of 40K bbl/day production at the end of 2014.
Full-year revenues rose to $38.6M from $6.7M in the prior year, and current production is running above 37K bbl/day, and the company says it hopes to achieve an average rate of 36K bbl/day through 2015.
Gulf Keystone says it is in discussions regarding possible asset transactions or a sale of the company, as well as considering additional routes to secure further funding.