Shares in Iraqi Kurdistan oil producer Gulf Keystone Petroleum fell in London trading after it said it was trying to change the conditions of a bond as it attempts to raise funds.
Gulf Keystone’s stock dropped as much as 11% at one point this morning.
The shares have declined 28% since February 25, when they jumped 55% on news the firm was in talks with parties on a possible sale of assets or even the whole company.
Bermuda-based Gulf Keystone said today it was mulling “a number of funding alternatives, including an equity raise”.
It expects bondholders to support its request to remove a put option that may oblige the company to buy a £167million bond due in 2017 above par.
Gulf Keystone said an expected impairment on the Akri- Bijeel block it has earmarked for sale may trigger the option as the company’s ratio of book equity to total assets declines below 0.4.
It is offering bondholders a fee of About £3.30 for every £668 of notes they own to consent to the amendment by April 1.
Chief financial officer Sami Zouari said: “We believe that it is appropriate to seek the removal of the book equity ratio put option in order to progress and complete a number of strategic and funding options.”
The company, which has £60million of cash, must pay about £17million of interest on its bonds in April.
It also said it was preparing to resume production at its Shaikan block following a shutdown in February.
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