Gulf Keystone has completed a placing of 75,600,000 new common shares of $0.01 at a placing price of 9p per share raising gross proceeds of approximately £6.8 million ($11.30 million). These shares were placed by the Company and brokers Equest Partners Limited with existing and new shareholders.
Use of Proceeds
Together with the Company’s existing cash balances the Placing proceeds will be used to fund the ongoing exploration and drilling activities in the Kurdistan region of Iraq. Specifically, the Shaikan-1 well (75% Gulf Keystone Petroleum International Limited) which is currently drilling and which will then be followed by the Bijeel-1 well on the MOL operated Akri-bijeel block (20% Gulf Keystone Petroleum International Limited).
Todd Kozel, Executive Chairman of Gulf Keystone, commented, “These are exciting and dynamic times at Gulf Keystone as we focus all our energies on our exploration operations in Kurdistan where we believe we have significant upside potential. Recent events such as the acquisition of two additional exploration blocks, strong oil shows above our main targets in the Shaikan-1 well, excellent progress on oil exports and oil sales outside Kurdistan as well as the constantly expanding infrastructure and excellent working relationship with the KRG, only serve to strengthen my belief that Gulf Keystone has chosen well in deciding to anchor our future in Kurdistan.”