Gulf Keystone raises $49m to fund Algeria projects
Algiers, July 28, 2008
Gulf Keystone Petroleum said it has raised 25.1 million pounds ($49.8 million) by placing about 89.51 million shares at 28 pence each as part of its plans to fund its projects in Algeria and Kurdistan.
Gulf Keystone Petroleum is an independent oil and gas exploration and production company with assets in Algeria and Kurdistan.
These shares were placed by the Company's brokers, Tristone Capital and RBC Capital Markets, with institutional clients and certain of the company's directors, management and associates.
Together with the company’s existing cash balances and forecast cash flow from oil production the net proceeds of the placing will be used to fund the further exploration and appraisal of the HBH Permit in Algeria and the drilling of an additional well in Kurdistan, said a company statement.
The HBH Permit, which contains the HBH gas field, comprises five blocks within an area of 18,380 sq km in the Bechar Basin in Algeria’s Western Desert.
Gulf Keystone and its partners are currently drilling the fourth well of a six well campaign.
Following the recently announced success of the RM-1 exploration well, Gulf Keystone and its partners agreed to go into the second prospecting period of the HBH Permit (Phase II), the statement added.
The new phase includes a work programme obligation of 500 sq km of 3D seismic, 1 exploration well and 2 appraisal wells. In addition the Company and its partners are considering acquiring additional discretionary 2D and 3D seismic.
In November 2007 Gulf Keystone was awarded interests in two blocks in the Kurdistan Region of Iraq. 2D seismic has already been completed over the Shaikan Block and the acquisition of 2D seismic on the Akri-Bijeel block is ongoing.
The Company has previously announced plans to drill a well on the Shaikan block, currently scheduled for early 2009. Following positive initial analysis of the acquired seismic, combined with the large reserve potential of the asset, the Company now plans to drill an additional exploration/appraisal well on its Shaikan block.-TradeArabia News Service