DNO, Oslo, has proposed to acquire Gulf Keystone Ltd., Bermuda, for $300 million in cash and shares. Both companies produce oil in the Kurdistan region of Iraq.
DNO seeks to acquire 100% of the expanded share capital envisioned in a planned reorganization in which portions of Gulf Keystone’s debt will be converted to equity. Its offer is conditional on completion of the restructuring.
Gulf Keystone said it responded to DNO’s offer by saying it “would not engage in any additional process that causes the company to be distracted from” the restructuring.
Gulf Keystone has scheduled a special general meeting for Aug. 5 for shareholder consideration of the restructuring.
DNO operates Tawke oil field in Kurdistan with a 55% interest. The field produces about 120,000 b/d of 27° gravity crude.
Gulf Keystone holds a 58% interest in and operates Shaikan oil field, producing about 40,000 b/d of 17° gravity crude.