Restructuring Iraqi oil player seeking more capital

LONDON, Aug. 31 (UPI) -- A potential takeover target, Iraqi-focused company Gulf Keystone Petroleum said it was offering up common shares in an effort to raise more capital.

"The company announces that it has today launched an open offer for up to 2,294,295,672 new common shares in the company at a price of 0.8314 pence ($1.08) per share, to raise up to $25 million," it said in a statement.

The company, which lists headquarters in London, reached an agreement last month with the majority of its creditors and shareholders to restructure its debt obligations. Andrew Simon in July stepped down as chairman, opening the door for non-executive director Keith Lough to help steer a $500 million debt conversion proposal.

The company is focused on developing the Shaikan oil field in the Kurdish north of Iraq. It said restructuring would support near-term plans to raise production from 40,000 barrels of oil per day to 55,000 bpd.

Last month, Norwegian oil and gas company DNO, which also has a strong Kurdish portfolio, made a $300 million bid for Gulf Keystone Petroleum. Last year, Gulf Keystone said it was looking for potential buyers or partners as part of a long-term strategic review, though top executives said more recently that restructuring was the best possible option to maintain value in reserves.

Mirabaud Securities said after the DNO bid surfaced that it came at the wrong time as the new management structure at Gulf Keystone could help the company rebound.

The company said the open offer for shares was in coordination with its restructuring efforts.