Executive Summary
Gulf Keystone Petroleum (LON:GKP) is an oil and gas exploration and production company with interests in North Africa and the Middle East. Headquartered in Bermuda and incorporated there in 2001, the company is a joint venture between Gulf Keystone Petroleum International (GKPI) and strategic partner in Kurdistan, ETAMIC. Its offices are also located in London, Algiers and Iraq and the company employs 54 people. Gulf Keystone's main interests are in Production Sharing Contracts (PSCs) in four gas and oil exploration blocks. The total area under licence for exploration is 1,702 square kilometers.
The company’s assets are in the investment stage of the exploration and production cycle, and expenditure commitments associated with the portfolio exceed the company’s current resources [1] Therefore raising further funding remains a priority and the company is open to ‘farm-outs’ sales or strategic partnerships.
Company History
- The company was originally founded by United Arab Emirates (UAE), Kuwaiti, Saudi and US private equity.
- The company was listed on the AIM in September 2004.
- In November 2007, Gulf Keystone's subsidiary, Gulf Keystone Petroleum International Limited and its partner, MOL Hungarian Oil and Gas Public Company Limited were awarded interests in two blocks in Kurdistan
- In January 2008, the company received Development Plan approval for the GKN and GKS oil fields triggering an entitlement to a share of production effective from 10 October 2007.
Current Events
- In May 2009 the company agreed a GB£30m standby equity distribution agreement
- In July 2009 the company announced its intention to exit operations in Algeria and concentrate on Kurdistan.
- On 20 July 2009, GKPI announced the award of significant interests in two further PSCs for the exploration, development and production of hydrocarbon resources in the Sheikh Adi and Ber Bahr Blocks of the Kurdistan Region of Northern Iraq.
- On 6 Aug 2009, the Company announced that GKPI had made a significant discovery at the Shaikan-1 exploration well which spudded on 27 April 09. [2]
Business Model
Gulf Keystone was established to pursue the exploration, development and production of oil and gas in the Republic of Algeria and elsewhere in North Africa and the Middle East. The focus has been on exploration in proven hydrocarbon-bearing basins and on the appraisal and exploitation of existing undeveloped discoveries. [3] Its stated strategy is as follows:
- Short term focus on maturing/ commercialising current asset portfolio
- Identify hydrocarbon…
