Gulf Keystone completes restructuring

Gulf Keystone Petrol announced it had completed its balance sheet restructuring.

Under the scheme of arrangement announced on 14 July, which became effective on Thursday, the company converted over $500m of debt into equity, allowing it to lower its debt pile to $100m.

The new shares would begin trading on the next day.

In parallel, it increased its liquidity by $25m via an over-subscribed open offer, the company said in a statement.

The latter would allow Gulf Keystone to carry -out a near-term investment plan to maintain production at 40,000 barrels of crude oil a day, with the potential to increase that volume to 55,000 b/d, subject to approval from the Kurdistan regional government and Hungary's MOL.

Board changes were also announced, with David Thomas and Garrett Soden appointed as non-executive directors and Cuth McDowell stepping down from the same post.

Canaccord Genuity was also appointed as its sole corporate broker.