6 July 2018
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Completes USD 100 million bond issue
Gulf Keystone Petroleum Ltd., operator of the Shaikan Field in the Kurdistan Region of Iraq, is pleased to announce the successful completion of the private placement of a 5-year senior unsecured $100 million bond issue (the "New Notes"). The New Notes will be issued at 100 percent of par and carry a 10 percent fixed semi-annual coupon. The bond placement received strong investor demand, both from existing and new investors across international markets and was oversubscribed.
The New Notes issue is expected to settle on or about 25 July 2018, subject to customary conditions precedent. An application will be made for the New Notes to be listed on an appropriate recognised exchange. The proceeds from the New Notes will be used to refinance all of Gulf Keystone's existing $100 million Guaranteed Notes due 2021 (the "Existing Notes").
With respect to the Existing Notes that have not tendered for exchange, the Company intends to exercise the option to redeem all of the Existing Notes then outstanding at par value according to the call option, expected to take place on 26 July 2018.
Jón Ferrier, Gulf Keystone's Chief Executive Officer, said:
"Following our recent announcement of the resumption of investments at the Shaikan Field to increase production to 55,000 bopd, an increase by about 70% compared to current levels, this refinancing resets the Company's capital structure that was put in place in conjunction with the restructuring in 2016. This is another positive milestone for the company and the Kurdistan Region of Iraq.
We also look forward to updating the market on our plans to increase production to 75,000 bopd and up to 110,000 bopd in due course."
Sami Zouari, Gulf Keystone's Chief Financial Officer, said:
"The refinancing confirms the substantial progress achieved by the Company. The New Notes considerably strengthen the Company's financial capabilities as we embark on our next investment phases in the Shaikan field."
Pareto Securities acted as sole manager for the bond issue.
Enquiries:
Gulf Keystone Petroleum: |
+44 (0) 20 7514 1400 |
Jón Ferrier, CEO |
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Sami Zouari, CFO |
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Pareto Securities |
+47 22 87 87 71 |
Inge Edvardsen |
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Celicourt Communications: |
+44 (0) 20 7520 9266 |
Mark Antelme Jimmy Lea |
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or visit: www.gulfkeystone.com
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan field with current production capacity of 40,000 barrels of oil per day.
Further information on Gulf Keystone is available on its website www.gulfkeystone.com
Disclaimer
This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business. These statements are made by the Company and its Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.
