Gulf Keystone delays bond interest payment, shares dive
LONDON, April 14, 2016
Oil producer Gulf Keystone Petroleum said on Thursday it would have to make use of a grace period for an upcoming bond interest payment, sending its shares down as much as 35 percent.
The company, whose main assets are located in Iraqi Kurdistan, has been grappling with low oil prices and slow payments from the Kurdistan Regional Government for oil production.
It said it needed $71 million just to maintain current production levels at its Shaikan oilfield at 40,000 barrels per day (bpd).
"Gulf Keystone announces, following discussions with the company's advisors, its current intention to utilise the grace periods for the upcoming 18 April 2016 coupon payments," the company said in a statement.
Its shares fell 35 percent to an intra-day low of 4.50 pence per share following the announcement.
--Reuters
