Gulf Keystone, ShaMaran agree $601 million oil merger (updated)

Genel Energy

Tue 07:42

Adds details on deal and production
Oct 20 (Reuters) - Gulf Keystone Petroleum GKP.L said on Tuesday it would merge with Norway's ShaMaran Petroleum SNMS.OL in a $601 million all-share 50-50 deal, creating one of the largest producers in Iraq's oil-rich Kurdistan region.
Here are some details from the statement:  
ShaMaran shareholders to receive 0.07533958 Gulf Keystone share for each ShaMaran share held, with Gulf Keystone shareholders to receive a $50 million special dividend
Merger combines operations across four Iraqi fields: Shaikan, Atrush, Sarsang and Hamrin
Combined company expected to hold 323 million barrels of proved and probable reserves
With pro-forma working interest production of 53,000 bpd, combined company ranks among the top 10 European listed independent oil producers
Combined group has potential to reach 100,000 barrels of oil per day through development of Shaikan and Hamrin fields, a Gulf Keystone spokesperson said
Dealmaking among Middle East-focused oil companies is supported by higher oil prices, with Genel Energy GENL.L competing with Norway's DNO DNO.OL to buy Capricorn Energy CNE.L

(Reporting by Prerna Bedi and Nithyashree R B in Bengaluru; Editing by Sherry Jacob-Phillips and Alexander Smith)
((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))