Gulf Keystone Petroleum moving on restructuring

The target of a takeover bid, Iraqi oil player Gulf Keystone Petroleum said most of the parties with an interest in the company are in favor of restructuring.

"The company announces today that signatories to the restructuring agreement now represent approximately 82 percent of the aggregate principal amount of the Guaranteed Notes and approximately 82 percent of the aggregate principal amount of the Convertible Bonds," Gulf Keystone said in a statement.

The company, which lists headquarters in London, reached an agreement last month with the majority of its creditors and shareholders to restructure its debt obligations. Andrew Simon in July stepped down as chairman, opening the door for non-executive director Keith Lough to help steer a $500 million debt conversion proposal.

The company is focused on developing the Shaikan oil field in the Kurdish north of Iraq. It said restructuring would support near-term plans to raise production from 40,000 barrels of oil per day to 55,000 bpd.

Chief Executive Officer Jon Ferrier said restructuring was the best possible option to maintain value in reserves. Last year, Gulf Keystone said it was looking for partners or potential buyers as part of a long-term strategic review and Norwegian Oil and gas company DNO, which itself has a strong Iraqi portfolio, came forward Friday with a $300 million bid.

Mirabaud Securities said after the bid surfaced the offer may have come at the wrong time as the new management structure at Gulf Keystone could help with recovery.

Gulf Keystone said last week restructuring would be best for shareholders.

"We will not engage in any additional process that causes the company to be distracted from that objective," the board said in a statement last week.