Re-organisation of Interests

RNS Number : 7264Q

Gulf Keystone Petroleum Ltd

09 August 2010

 



Not for release, publication or distribution in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction

9 August 2010

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Gulf Keystone Petroleum completes re-organisation of interests in Kurdistan

Gulf Keystone confirms that certain Production Sharing Contract ("PSC") amendments were approved and executed by the Kurdistan Regional Government (KRG) and all the other parties in each of the respective PSCs, with an effective date of 1 August 2010. 

On 10 March 2010, Gulf Keystone announced proposals to reorganise its interests in Gulf Keystone Petroleum International (GKPI) and in its four PSCs, which required, inter alia, KRG approval. These proposals have been documented in a series of amendments to each of the four PSCs which have been approved and executed by the KRG and by GKPI and each of its partners in the four PSCs. In the case of the Shaikan Block and Akri-Bijeel Block PSCs certain Third Party Rights have been modified as set out below.

Key changes to the proposals announced on 10 March 2010 are:

·      Previously announced payment dates for the Infrastructure Support Payments have been revised so that such payments are fully payable on 15 August 2010.

·      The parties to the Shaikan Block and Akri-Bijeel Block PSCs have agreed to extend the period that the KRG may exercise the Option of Third Party Participation to enable the KRG to nominate a Third Party Participant until 30 June 2011.

·      Clarification that the existing Ber Bahr Capacity Building Payment of $10 million is now due on declaration of the first commercial discovery.

·      There are no other material changes to the proposals or to the post re-organisation interests announced on 10 March 2010 or to the terms of the PSCs other than as set out above.

Gulf Keystone CEO, Todd Kozel, said:

"We regard this as an excellent outcome for our shareholders who have secured a substantial uplift in exposure to outstanding resources and highly prospective pre-drill acreage from the net expenditure of $52 million, which will be made out of the proceeds of the recent successful equity fund raising of $165 million. Additionally the company enjoys a much simplified ownership structure for its assets and full alignment with its regional partner. We look forward to continuing success with our operations in Kurdistan together with the Kurdistan Regional Government as a key stakeholder in our projects."

Enquiries:

Gulf Keystone Petroleum:	[phone]
Todd Kozel, Executive Chairman
Ewen Ainsworth, Chief Financial Officer
Strand Hanson Limited	[phone]
Simon Raggett / Rory Murphy / James Harris
Mirabaud Securities LLP	[phone]
Peter Krens
Brunswick Group LLP	[phone]
Patrick Handley

or visit: www.gulfkeystone.com

Notes to Editors:

§  Gulf Keystone Petroleum Ltd. (AIM: GKP) is an independent oil and gas exploration company focused on exploration in the Kurdistan region of Northern Iraq.

§  Gulf Keystone Petroleum International (GKPI), a subsidiary of GKP, holds Production Sharing Contracts for four exploration blocks in Kurdistan.

§  The Company's shares have traded on the AIM market, since listing on 8 Sept 2004.

§  The Company established a sponsored Level 1 American Depositary Receipt ("ADR") programme on 5 December 2008. The ADRs are traded under the ticker symbol GFKSY in the US over-the-counter ("OTC") securities market of Pink OTC Markets Inc. (www.pinksheets.com)

§  Gulf Keystone Petroleum Limited is registered in Hamilton, Bermuda with offices in Erbil, Kurdistan, Algiers, Algeria and London, UK.

Not for release, publication or distribution, directly or indirectly, in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.

 

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