Wednesday, 25 February 2015
GKP puts itself up for sale
Drilling in Kurdistan was always risky but who knew ISIS would be threatening and the whole area would turn into a warzone. Worse, the Kurdish Government has never been able to come to a political settlement with the main Government of Iraq concerning oil funds; so there has been precious little money to pay the Oil companies whom they gave licences too in Kurdistan.
With the large debts built up from exploration, GKP has a hard time paying its debts. As such today the company has put itself up for sale. Moving the shareprice up 50% at time of writing, but still at fraction of where the shares once traded.
Afren, a fellow oil company in Kurdistan with huge problems. also struggling to sell its assets, it maybe a firesale of sorts - it is not like the Global market for Oil M&A is very hot right now.
I have been invested on an off in the company for a long time - it amazes me how much global politics and events have ended up defining one small oil play in end.