Placing Completed

RNS Number : 7249W

Gulf Keystone Petroleum Ld

03 August 2009

 



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

03 August 2009

Gulf Keystone Petroleum Ltd.

("Gulf Keystone" or "the Company")

Placing to Fund Exploration in Kurdistan Region of Iraq 

Gulf Keystone Petroleum Ltd. (AIM: GKP), an independent oil and gas exploration and production company with assets in the Kurdistan region of Iraq and Algeria, is pleased to announce that it has today completed a placing (the "Placing") of 75,600,000 new common shares of $0.01 (the "Placing Shares") at a placing price of 9p per share (the "Placing Price") raising gross proceeds of approximately £6.8 million ($11.30 million). These shares were placed by the Company and brokers Equest Partners Limited with existing and new shareholders.

Use of Proceeds

Together with the Company's existing cash balances the Placing proceeds will be used to fund the ongoing 

exploration and drilling activities in the Kurdistan region of Iraq. Specifically, the Shaikan-1 well (75% Gulf Keystone Petroleum International Limited) which is currently drilling and which will then be followed by the Bijeel-1 well on the MOL operated Akri-bijeel block (20% Gulf Keystone Petroleum International Limited).

Executive Bonus Scheme Issue 

It was also resolved to award 133,513 new common shares of USD 0.01 (the "award Shares") to employees pursuant to the Company's Executive Bonus Scheme (the "Scheme"). 

The award Shares will be issued fully paid and will rank pari passu in all respects with the existing issued common shares of the Company. 

Details of directors receiving award Shares under the Scheme are as follows:

Ewen Ainsworth       54,233 common shares

Admission of New Shares

Application has been made for the Placing and award Shares to be admitted to trading on AIM and dealings are expected to commence on 6 August 2009. Following the Placing there will be 478,491,326 common shares of $0.01 in issue.

Todd Kozel, Executive Chairman of Gulf Keystone, commented: 

"These are exciting and dynamic times at Gulf Keystone as we focus all our energies on our exploration operations in Kurdistan where we believe we have significant upside potential. Recent events such as the acquisition of two additional exploration blocks, strong oil shows above our main targets in the Shaikan-1 well, excellent progress on oil exports and oil sales outside Kurdistan as well as the constantly expanding infrastructure and excellent working relationship with the KRG, only serve to strengthen my belief that Gulf Keystone has chosen well in deciding to anchor our future in Kurdistan."

Enquiries

Gulf Keystone Petroleum:	[phone]
Todd Kozel, Executive Chairman
Ewen Ainsworth, Chief Financial Officer
RBC Capital Markets:	[phone]
Sarah Wharry
Tristone Capital Limited:	[phone]
Simon Ashby-Rudd
Majid Shafiq
Equest Partners:	[phone]
Michael Hanson
Citigate Dewe Rogerson:	[phone]
Martin Jackson Emma Woollaston

or visit: www.gulfkeystone.com

 

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