Gulf Keystone, ShaMaran Petroleum agree to $600M Kurdistan oil merger
Leonid Ikan/iStock via Getty Images
Gulf Keystone Petroleum (GUKYF) said Tuesday it reached a merger agreement with Norway's ShaMaran Petroleum in a $601M all-stock deal, creating one of the largest producers in Iraq's oil-rich Kurdistan region.
Under the deal terms, ShaMaran shareholders will receive 0.07533958 new Gulf Keystone (GUKYF) shares for each ShaMaran share held; existing shareholders of Gulf Keystone and ShaMaran are expected to own ~50% each of the combined company.
The proposed move would shift Gulf Keystone's (GUKYF) principal trading venue from London to Norway, where ShaMaran is based.
The merger combines operations across four Iraqi fields—Shaikan, Atrush, Sarsang, and Hamrin—with pro-forma working interest production of 53K bbl/day of oil and 323M barrels of proved and probable reserves.
Gulf Keystone (GUKYF) said the combined company has the potential to reach 100K bbl/day through further development of the Shaikan and Hamrin fields.
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