Gulf Keystone's shares flop on open offer, CPR

Shares in Gulf Keystone have flopped almost 30% after the company issued a competent person's report (CPR) and outlined a $25m open offer.

Gulf Keystone's offer was for up to 2.29m shares at 0.8314p each. At about 14:46 BST, shares in Gulf Keystone were down 26.03% to 3.58p.

The open offer was being conducted in connection to the company's balance sheet restructuring transaction, announced July.

The CPR said that with 12.4m barrels of oil produced in the period since the previous report in September 2015, gross Shaikan 2P Reserves were broadly flat at 622m barrels.

Gulf Keystone's net working interest Shaikan 2P Reserves had risen from 348m barrels to 360m barrels, now reported on a 58% working interest basis.

Inclusive of 2C Contingent Resources and Technically Recoverable Volumes, Shaikan had more than 1bn barrels of oil remaining.

"With over 25 million barrels produced to date, the company now has an increasingly confident understanding of the reservoir," it said in a statement.

"Contingent Resources totals now exclude volumes previously reported for the relinquished Sheikh Adi and Ber Bahr blocks," it added.