Gulf Keystone Petroleum Ltd. Strategic Update (7491W)

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RNS Number : 7491W

Gulf Keystone Petroleum Ltd.

29 April 2016

Not for release, publication or distribution, directly or indirectly, in whole or in part in or into the United States or any jurisdiction other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws or regulations of such jurisdiction. This announcement (and the information contained herein) does not contain or constitute an offer to sell or the solicitation of an offer to purchase, nor shall there be any sale of securities in any jurisdiction where such offer, solicitation or sale would constitute a contravention of the relevant laws or regulations of such jurisdiction.

29 April 2016

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone" or "the Company")

Strategic Update

Standstill Agreement with the Ad Hoc Committee of Holders of Notes and Bonds

US$250,000,000 13.0 per cent. Guaranteed Notes due 2017 (ISINs: Regulation S XS1056559245, Rule 144A XS1056559088) (the "Notes") and US$325,000,000 6.25 per cent. Convertible Bonds due 2017 (ISIN: XS0841237497, Common Code: 084123749) (the "Bonds")

Further to the Company's disclosure on 14 April 2016, Gulf Keystone confirms that constructive dialogue continues with a number of its stakeholders on the Company's need for near-term fundraising and the restructuring of the Company's balance sheet ("Stakeholder Discussions"). The grace periods for the 18 April 2016 coupon payments in respect of the Company's Bonds and Notes ("April 2016 Coupon Payments") expire on 2 May and 3 May, 2016, respectively.

In this context Gulf Keystone announces today that the Company has reached an agreement with the Ad Hoc Committee of holders of Notes and Bonds, that they will enter into a Standstill Agreement with the Company until 20 May 2016, extendable until 31 May 2016. The signatories represent a significant proportion (but less than 75% by principal amount) of the holders of each of the Company's Notes and Bonds. The purpose of the Standstill Agreement is to provide the Company with an extended period to continue the Stakeholder Discussions beyond the expiry of the grace periods for the April 2016 Coupon Payments.

Whilst the Standstill Agreement remains in effect, the Company does not intend to make the April 2016 Coupon Payments. After the expiry of the relevant grace period on 2 May and 3 May, respectively, the continuing failure to make those payments under the Bonds and the Notes will constitute 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.

Enquiries:

 
 Gulf Keystone Petroleum:       [phone] 
 Jón Ferrier, CEO 
 Sami Zouari, CFO 
 Anastasia Vvedenskaya, Head 
  of Investor Relations         [phone] 
 
 Celicourt Communications:      [phone] 
 Mark Antelme 
  Jimmy Lea 
 

or visit: www.gulfkeystone.com

Notes to Editors:

-- Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan block, which is a major producing field.

-- Following the establishment of a regular payment cycle for all oil sales and arrears, and a positive economic outlook, Gulf Keystone plans to move into the large-scale phased development of the Shaikan field targeting 110,000 bopd of production capacity.

Disclaimer

This announcement contains certain forward-looking statements. These statements are made by the Company's Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent uncertainties, including both economic and business factors, underlying such forward-looking information. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 29, 2016 02:01 ET (06:01 GMT)