Kurdistan focussed DNO International last week said it would still be “prepared to consider” a cash offer for Gulf Keystone but it would be at an even lower price than before.
Cantor Fitzgerald Oil Analyst Sam Wahab tells Proactive: ”Back in July DNO offered a $300 mln cash and shares deal . At the time GKP was undergoing their own financial restructuring which seems to have reached a conclusion now. They’ve also done an open offer of $25 mln – so they’re now boasting a cash position of $109 mln”
”In terms of DNO I think they’re really playing down the value of Shaikan as an asset which comes across as slightly contrived in my opinion given that if they didn’t believe it to be a good producer they wouldn’t be coming back to the table looking to acquire it again”, Wahab added.
Story by ProactiveInvestors