http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

I thought you were tall cynic ..

the old ones are the best ones :-)

tom winnifrith writes ......

Without explicitly using the words "we are 100% fucked and shareholders face either total or near wipeout" drowning in debt Gulf Keystone (GKP) has today pretty much fessed up to what a mess it is in. Not for the first time, the company is telling shareholders that the game is up. Natch they think they know better. They obviously don't remember the last days of Afren.

On 14 April Gulf said it was deferring payments of $26.4 million of interest as it was allowed to do until 2nd and 3rd May. Today the bond holders have agreed to a further extension until 20 May which could be pushed to 31 May. Gulf says the time will allow it an " extended period to continue the Stakeholder Discussions beyond the expiry of the grace periods for the April 2016 Coupon Payments."

But by not paying interest on 2nd and 3rd May Gulf will then formally be in default. And thus if more than 25% of either class of bond holders get together they can call for immediate repayment and Gulf just does not have the cash to meet such a call. Pro tem that looks unlikely but what is clear is that the only way out for Gulf is a massive debt for equity swap and then a further capital injection to fund capex to reverse output declines.

The company may well survive. But shareholders will face either wipeout ot as near as damn it via dilution. If existing punters end up with less than 1% of the equity (which is the best case scenario) a delisting to follow is almost inevitable. Even at 5p the shares are at least 80% overvalued and remain a stand out sell.

much activity in this stock today, but whether the accompanying rise has any substance remains to be seen

Had noticed that...over 25 million share traded and up over 30% at high yesterday's high point.....finished up 6%. No news.......
They are expecting a bag full of news imminently on restructuring and payments...
But a little unusual yesterday.....

arguably just lemmings chasing a low (zero!) value oily on the back of crude recovery

Nice bit of volume again this morning....sp still blue....possible restructuring deal leaking out....or just a play?

Guess we will know the extent of any dilution by next Tuesday 31st....or weather it is suspended and finished....

Half payment today as with GENL and the rest...
Strange...
See what transpires next Tuesday, if anything..
Have a good long weekend all....

(Bloomberg) — Gulf Keystone is in talks with potential new money providers to help restructure its debt, according to people familiar with the discussions, who asked not to be identified because the matter is private.
Co. is in negotiations with investors who may inject new money in exchange for stake in restructured business
Bondholders will swap some of their holdings for majority of equity
Moratorium on debt payments may be extended beyond today to allow enough time for negotiations.
Gulf Keystone spokesman Mark Antelme declined to comment on the restructuring or the talks with new investors

who asked not to be identified because the matter is private.
*******************************
That always makes me laugh......:-)

Bondholders will swap some of their holdings for majority of equity

so you want to be long?

Might depend on how the company is restructured. I suspect that existing share holders might have to take a consolidation hit.

that's what i'm banking on :-)

Shareholders have known about talks with the BHs and are aware that the board were also looking for new finance
None of the above from Bloomberg is new.....except the..."who asked not to be identified because the matter is private."

LOL....

Extended till 13th of June now!!

Further to the Company's announcement of 20 May 2016, Gulf Keystone announces today that, as discussions with the Ad Hoc Committee of holders of Notes and Bonds are continuing and as the previous Standstill Agreement was due to expire on 31 May 2016, the Ad Hoc Committee has entered into a new standstill agreement with the Company until 13 June 2016.


The signatories to the new Standstill Agreement are substantially the same as to the prior standstill. They hold a significant proportion (but less than 75% by principal amount) of each of the Company's Notes and Bonds.

Whilst the Standstill Agreement remains in effect, the Company does not intend to make the April 2016 Coupon Payments. The continuing failure to make those payments constitutes an Event of Default under the Bonds and Notes, respectively. At a time when an Event of Default subsists the holders of not less than one-quarter of the principal amount of the Notes or the Bonds, as the case may be, then outstanding may request the relevant Trustee to declare the principal amount of the Notes or the Bonds, as the case may be, immediately due and payable.

The signatories to the Standstill Agreement will agree not to vote in favour of any resolution of the Noteholders or Bondholders to instruct the relevant Trustee to take such a step.

A further announcement will be made in due course.

Total received is $13 million for April....still another payment to come for April....

Further to the Company's RNS of 14 June 2016, Gulf Keystone announces today that the current Standstill Agreement between the Ad Hoc Committee of holders of the Notes and the Bonds and the Company expired on 1 July 2016 at 5pm BST and has not been extended.

The Company is currently discussing the terms of an agreement with certain restricted members of the Ad Hoc Committee and other stakeholders. These restructuring discussions remain ongoing notwithstanding the expiration of the Standstill Agreement.

At this stage, the Company does not intend to make the April 2016 Coupon Payments. The holders of not less than one-quarter of the principal amount of the Notes or the Bonds, as the case may be, outstanding, may request the relevant Trustee to declare the principal amount of the Notes or the Bonds, as the case may be, immediately due and payable. Whilst these coupons remain unpaid, and absent a new Standstill Agreement executed by 75% of the principal amount of each of the Notes and the Bonds, an Event of Default will subsist under both the Notes and the Bonds.

A further announcement will be made in due course.

Sunday Times : ONE-TIME stock market darling Gulf Keystone Petroleum is close to a deal with creditors that will wipe out its investors but allow the stricken producer to survive.

The company, which pumps oil from a big field in Kurdistan, northern Iraq, was worth £3.6bn in 2012. The plunging price of crude, Kurdistan's inability to pay for oil, the incursion of Isis terrorists into Kurdish territory and Gulf Keystone's huge debts combined to cause its near-collapse. As of Friday, its stock traded at 4.85p, 99% below its high.

The company is this weekend haggling over the final details of a two-part rescue plan. Creditors have agreed to write off most of the $575m (£430m) due next year as part of a debt-for-equity swap that will leave them as majority owners of the shares.

Gulf Keystone is also expected to launch an equity fundraising to bring in about $40m to bolster its balance sheet. It is thought that a core of institutional investors have agreed to back the financing. The final figure is being negotiated this weekend. The investors are betting that Gulf Keystone, shorn of its crippling debt burden, could recover strongly. Its Shaikan field produces 37,000 barrels a day, the Kurdish regional government has begun to make more regular payments and a new management team has banished the boardroom in-fighting that once plagued the producer. Gulf Keystone declined to comment.