Gulf Keystone completes 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.