Oil & Gas News
Gulf Keystone Petroleum (BUY, £2.00) (LON:GKP, 87.25p, ? (0.29%)) announced an operational update on the preparations for its 2010 drilling campaign in the Kurdistan Region of Iraq. Gulf Keystone plans to commence the acquisition of 3D seismic over the Shaikan structure during the first quarter of 2010. A well workover on Shaikan-1 is planned, as well as a further three appraisal wells on the licence, with plans to spud two in 2Q10 and one in 4Q10. An exploration well is also planned on the Sheikh Adi block in 3Q10.
Gulf Keystone Petroleum (BUY, £2.00) (LON:GKP, 87.25p, ? (0.29%)) also announced that it has today completed a fully subscribed placing of 20,915,034 new common shares at a placing price of 76.5p per share, raising gross proceeds of approximately £16m. These shares were placed by the Company and broker Fox-Davies Capital Limited with existing and new institutional shareholders. The net proceeds will be utilised towards funding the Company's ongoing operations in Kurdistan. Further funding will be required during the course of 2010 and the Company is considering its best funding strategy with its advisers.
Comment: Given the level of activity planned in the next year or so as well as the financial commitment resulting from the change in the PSC structure following the default by Etamic, we estimate that the Company needs to raise some US$150m in total to fund it all. The equity raise announced this morning addresses only a portion of those needs, while the Company is also deemed to receive some US$10m from the disposal of their assets in Algeria. The balance could come from an additional equity raise later this year, possibly combined with a limited asset sale such as the disposal of the 20% interest in the Akri-Bijeel licence to MOL.
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Aurelian Oil & Gas Plc (LON:AUL, 37.25p, ? (1.36%)) announced the appointment of John Conlin as a non-executive director and Chairman-elect. It is intended that Mr. Conlin will become Chairman at the Company's Annual General Meeting, to be held in May, when David Prior will step down from the role while remaining as a Non-Executive Director. Mr Conlin has previously served as a non-executive Director of Hardman Resources and Delphian…
