Gulf Keystone Petroleum reveals working capital shortfall

20th Mar 2014 16:19

Iraq-focused oil explorer Gulf Keystone Petroleum has revealed that under a worst case scenario by January 31st 2015 it may face a maximum shortfall in its working capital requirements of 103m dollars, after which date that amount is expected to decrease. In parallel, and as previously disclosed, Deputy Chairman Lord Guthrie will step down and be replaced by Jeremy Asher. Lord Guthrie will however continue in his role as Non-Executive Director.That came as the company published its prospectus for listing its stock on the official list of the United Kingdom Listing Authority (UKLA)."The Company is of the opinion that the Group does not have sufficient working capital for its present requirements, that is, for at least the next 12 months from the date of the Prospectus. The Company is of the opinion that the Group does not have sufficient working capital for its present requirements, that is, for at least the next 12 months from the date of the Prospectus," Gulf Keystone said.However, the firm is not aiming to raise any funds via that funding channel.To take note of, in parallel the company is currently undertaking a series of fixed income investor meetings in the US, Europe and Asia with a debt offering of up to $250m.The firm's cash resources may be enhanced by several events during the next twelve months, Gulf Keystone said, including raising sales from Shaikan to 40,000 barrels a day or the sale of the Group's interest in the Akri-Bijeel Block. If none of those favourable events occur then the company may require additional working capital by the end of May 2014.Shares of Gulf Keystone Petroleum ended the day lower by 5.24% at 104p, after having fallen as low as 86p at one point in the session. AB