Business
GBP25.1million Placing
GBP25.1million Placing.
About this update from Gulf Keystone Petroleum Limited
[{"type":"text","content":"\n RNS Number : 8306Z Gulf Keystone Petroleum Ld 25 July 2008 \n \nNot for release, publication or distribution in or into the United States or 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\n25 July 2008\n\n\nGulf Keystone Petroleum Ltd.\n(\"Gulf Keystone\" or \"the Company\")\n\n£25.10 million (Gross) Placing to Fund \nFurther exploration and development in Algeria and Kurdistan\n\n\nGulf Keystone Petroleum Ltd., an independent oil and gas exploration and production company with assets in Algeria and Kurdistan, is pleased to announce that it has today completed a fully subscribed placing (the \"Placing\") of 89,509,488 new ordinary shares (the \"Placing Shares\") at a placing price of 28p per share (the \"Placing Price\") raising gross proceeds of approximately £25.10 million. These shares were placed by the Company's brokers, Tristone Capital Ltd. and RBC Capital Markets, with institutional clients and certain of the Company's Directors, management and associates.\n\nUse of Proceeds\n\nTogether with the Company's existing cash balances and forecast cash flow from oil production the net proceeds of the Placing will be used to fund the further exploration and appraisal of the HBH Permit in Algeria and the drilling of an additional well in Kurdistan.\n\nThe HBH Permit, which contains the HBH gas field, comprises five blocks within an area of 18,380 square kilometres in the Bechar Basin in Algeria's Western Desert. Gulf Keystone and its partners are currently drilling the fourth well of a six well campaign. Following the recently announced success of the RM-1 exploration well, Gulf Keystone and its partners agreed to go into the second prospecting period of the HBH Permit (\"Phase 2\"). Phase 2 includes a work programme obligation of 500 km2 of 3D seismic, 1 exploration well and 2 appraisal wells. In addition the Company and its partners are considering acquiring additional discretionary 2D and 3D seismic.\n\nIn November 2007 Gulf Keystone was awarded interests in two blocks in the Kurdistan Region of Iraq. 2D seismic has already been completed over the Shaikan Block and the acquisition of 2D seismic on the Akri-Bijeel block...