Gulf Keystone's sale hopes rise after Iraqi oil field reserves double

Oil explorer Gulf Keystone Petroleum burnished its hopes of tempting a buyer for the business after reserves at its key Shaikan field in the Kurdistan region of Iraq more than doubled.

The latest independent assessment of its commercially accessible reserves from the Shaikan field showed 639 million barrels, up from 299 million barrels 18 months ago.

The so-called Competent Person’s Report also suggests the field will need fewer wells, cutting the spend per barrel to get the oil out.

Gulf put itself up for sale earlier this year amid plunging oil prices and delayed payments for its oil from the Kurdistan government, which is fighting against Isis militants in the region.

A number of buyers are still poring over the books of the company, which is being advised by Deutsche Bank and Perella Weinberg.

Cantor Fitzgerald analyst Sam Wahab said: “The key area of focus will be to establish a regular payment cycle for its current production.

“In terms of the company’s medium-term corporate outlook, Gulf is currently engaged in discussions with a number of parties in relation to possible asset transactions or a full company sale, and we believe that today’s CPR will assist in this process.”

The better news comes after recent board turmoil.

Previous executive Todd Kozel quit last year after investor concern over his huge pay packet and former French legionnaire Simon Murray stepped down as chairman in March.