$601M All-Stock Merger Creates Major Kurdistan Oil Producer
GUKYF sits 88% above its 52-week low of $1.55.
Summary
Gulf Keystone agreed to merge with Norway's ShaMaran Petroleum in a $601M all-stock deal, with each shareholder base owning roughly half of the combined company. ShaMaran holders get 0.07533958 Gulf Keystone shares per share. The combined entity would hold four Iraqi fields — Shaikan, Atrush, Sarsang and Hamrin — with pro-forma working interest production of 53K bbl/day and 323M barrels of proved and probable reserves, and management sees a path to 100K bbl/day through further development of Shaikan and Hamrin. The deal is transformative relative to Gulf Keystone's size and would move its principal trading venue from London to Norway, which matters for OTC holders given liquidity and index implications.
At the time of this announcement, GUKYF was trading at $2.91 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $633.1M. The 52-week trading range was $1.55 to $3.30. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Seeking Alpha.