DNO ASA, Oslo, said its bid to acquire Gulf Keystone Petroleum Ltd. is faltering (OGJ Online, July 29, 2016).
It said conditions related to the target company’s reorganization “appear not to have been met.”
DNO had offered to pay $300 million for equity that was to have resulted from conversion of Gulf Keystone debt.
Gulf Keystone operates Shaikan oil field in the Kurdistan region of Iraq, where DNO also has production.
“Given the resulting uncertainties about Gulf Keystone’s asset, commercial outlook, and future rights and obligations at the Shaikan field, and following a careful review of Gulf Keystone’s latest reserves report, DNO is prepared to consider an all-cash transaction but at a meaningful discount to the previous $300-million equivalent cash-and-shares offer,” DNO said in its third-quarter earnings report.