Business
Algeria Update
Algeria Update.
About this update from Gulf Keystone Petroleum Limited
[{"type":"text","content":"\n RNS Number : 5947V Gulf Keystone Petroleum Ld 14 July 2009 \n \nNot for release, publication or distribution in or into jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction\n\n\n14 July 2009\n\nGulf Keystone Petroleum Ltd.\n(\"Gulf Keystone\" or \"the Company\")\n\nAlgeria Update \n\nGulf Keystone Petroleum Ltd. (AIM: GKP), an independent oil and gas exploration and production company with assets in Algeria and Kurdistan, today announces its intention to seek a buyer for its interest in the Hassi Ba Hamou Permit (the \"Permit\"), in central Algeria. A sale of Gulf Keystone's interest in the Permit is subject to approvals from the Algerian Government and the Company's partners, Sonatrach and BG North Sea Holdings Limited (\"BG\").\n\nFollowing appraisal and exploration successes on the HBH Gas Project (the \"Project\") the partners in June 2008 elected to go into Phase 2 of the exploration contract with an additional three well and 2D seismic commitment. Planning for the development and commercialisation of the Project has also begun but revenues are not expected to commence until 2014. Given the significant near-term upside potential of Gulf Keystone's interests in Kurdistan, it is the Company's considered view that shareholders' interests would be best served by the Company focusing its resources entirely on its Kurdistan operations. Gulf Keystone has therefore suspended further investment in the Permit and, as a consequence, has opted not to pay certain due cash calls in respect of the Permit. BG, which acts as Operator of the Permit, has certain rights under the terms of the Joint Operating Agreement (\"JOA\") which could, subject to certain Permit conditions, lead to Gulf Keystone's withdrawal from the JOA and the Permit. \n\nTodd Kozel, Executive Chairman of Gulf Keystone, commented: \n\n\"Kurdistan offers our shareholders significant near-term upside potential and it is therefore strategically compelling that Gulf Keystone should focus all its cash resource...