Gulf Keystone May Raise About 30 Million Pounds From New Shares

Gulf Keystone Petroleum Ltd. may raise about 30 million pounds ($45 million) in a planned share sale to help the producer of oil in Iraqi Kurdistan strengthen its finances.

The company will sell about 85.9 million new shares, Gulf Keystone said in a statement on Monday. The stock rose 8.7 percent to 40.5 pence by the close in London, giving a possible value for the new shares of 34.8 million pounds. The value as of Friday’s market close would be 32 million pounds.

Gulf Keystone on March 18 resumed production after receiving a gross payment of $26 million for future oil sales and is increasing output to full capacity of 40,000 barrels a day, the Hamilton, Bermuda-based company said.

It suspended operations last month following the slump in crude prices and delays in payments by the regional Kurdistan government. Gulf Keystone, which in February said it was in talks with parties over a possible sale of assets or the company, has asked its bondholders to remove a put option that may oblige it to buy a $250 million note due in 2017 above par.

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