Kurdistan consolidation? DNO's proposed offer for Gulf Keystone

On Friday 29th July, DNO made a proposal to acquire Gulf Keystone for USD300 million in cash and shares. The tactics around the timing of this offer are unclear, given that Gulf Keystone are part way through a creditor restructuring. Negotiations during creditor processes are generally messy with the potential acquirer having to become involved in discussions with the debt holders, who hold significant power given their ability to "pull the plug" on the distressed company and/or dictate restructuring terms that lead to massive dilution of the existing...

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Gulf Keystone debt restructuring

On 14th July, Gulf Keystone announced the terms of its proposed balance sheet restructuring, marking the culmination of months of discussions with the company's debt holders. The restructuring, if approved by shareholders, will be implemented by way of a debt-for-equity swap and will see existing shareholders significantly diluted. The company has c.USD600 million of debt, comprising USD335 million of Convertible Bonds and USD266 million...

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Brasse - Brage's younger sibling

On 11th July, Faroe announced the completion of a successful side-track appraisal well on the Brasse discovery in PL740 (50% WI) in the Norwegian North Sea and revised volume estimates for the discovery. The objective of the Brasse side-track well was to appraise the south-eastern part of the structure previously identified by the main discovery well. The side-track reached a depth of c.2,530m and encountered a 25m gross oil column and a 6m gross...

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