Gulf Keystone Petroleum Ld
21 June 2007
Not 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
21st June 2007
GULF KEYSTONE PETROLEUM LTD
("Gulf Keystone" or the "Company")
Notice of termination of Amalgamation with RAK Petroleum
Gulf Keystone announces that the Implementation Agreement between Gulf Keystone
and RAK Petroleum will terminate at 5pm tonight. This termination has been
triggered automatically under the terms of the Implementation Agreement, due to
the occurrence of a termination event. On 4th June 2007, the Minister
conditionally approved the proposed Amalgamation and confirmed it to be a change
of control of Gulf Keystone. However, this approval was conditional upon a fee,
of US$10 million, being paid by RAK Petroleum to the Algerian Treasury. This
fee is in excess of the agreed threshold set out in the Implementation
Agreement, of one per cent. of the Total Consideration, and the letter did not
constitute a Minister's Confirmation as defined in the Implementation Agreement.
The Company has today received notice from RAK Petroleum that it will not elect
to waive the termination event which leads to termination of the Implementation
Agreement in accordance with its express terms at 5pm this evening.
Gulf Keystone will now continue to pursue its future independently of
RAK Petroleum.
Unless otherwise stated, defined terms used in this Announcement shall have the
same meaning as those used in the Circular posted to Gulf Keystone Shareholders
on 13 April 2007.
Enquiries:
Gulf Keystone Petroleum +44 (0)20 7514 1400
Bill Guest
Todd Kozel
Jon Cooper
Citigate Dewe Rogerson +44 (0)20 7638 9571
Media enquiries: Martin Jackson
Analyst enquiries: Nina Soon
Hoare Govett Limited +44 (0)20 7678 8000
Andrew Foster
Stephen Bowler
Tristone +44 (0) 207 399 2470
Simon Ashby-Rudd
This information is provided by RNS
The company news service from the London Stock Exchange