Monday 30 March 2015

PM Bolt On: Gulf Keystone the placing (Part 1)

Good Evening,

Gulf Keystone had no choice but to announce a proposed placing to raise approx £30M (approx gross) circa 35 pence. This not only gives sufficient headroom (short-term) in cash to avoid the paltry offers that have been gossiped about over recent days, but more importantly some leeway whilst production is ramped up  and the all important cashflow is coming in.

This is far from the last you will hear on the GKP saga, over to the bondholders whom, despite the £30M raise still hold all the cards in the absence of a corporate action. It shall be interesting who picks the majority of the book up, if the word on the street is correct it'll merely bypass a certain party from acquiring in the market. 

Atb Fraser

5 comments:

  1. Heard much about this T5 group that sky is talking about?

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  2. http://uk.mobile.reuters.com/article/idUKKBN0MQ24120150330?irpc=932 there's a couple of suitors. One can only assume there on better terms than T+5. GKP will be the alot of newsflow coming on this, if some of the gossip is true there could be a farm in to pay down debt, if so, why raise now? Atb Fraser

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  3. Fraser/Tony- a decent corp pres here re T5-
    http://www.t5oilandgas.com/presentation.html
    Mainly ex Tullow, so real success in the past but they are looking at distressed assets, so will be using lots of debt and lowball offers.

    Cheers. The Leggie

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  4. Cheers both.
    I'm wishing i'd sold out ages ago, if they didn't even want to talk to T5 then either their offer was derisory or they're already sorted in private already. But if sorted with asset sale or BER removal then they wouldn't/shouldn't need to be raising more money! Sounds a little up a smelly creek, with not a paddle in sight.

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    Replies
    1. @Anonymous (It would be helpful to use a name). I think the statement about not requiring further monies is somewhat warped. GKP have debt, have a producing asset that needs significant cash to ramp up production and logistically it's a nightmare. This doesn't mean it's not attractive to some. Lets see if/who is appointed in the new role and the "holdings" in company. Atb Fraser

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