Gulf Keystone Petroleum (LON: GKP), the Kurdistan oil producer, has agreed an all-share merger with ShaMaran Petroleum, leaving shareholders in each company with about half of the combined group. The deal was announced at 7am today, before London opened.
Gulf Keystone shares were at 231p at 8.30am, up 2.7% in early trade from Monday’s close of 225p, the highest close in three months. They had already risen about 13% from 199p on Wednesday, so that run-up began before the announcement.
Gulf Keystone survives as the merged company and ShaMaran’s shares are cancelled. ShaMaran holders receive 0.07533958 new Gulf Keystone shares for each share they own, which the companies say values ShaMaran’s equity at about $601m. Both boards approved the deal unanimously.
Jon Harris, chief executive of Gulf Keystone, described the logic of putting the neighbouring fields together.
We view this combination as a natural next step for both companies. Bringing together Shaikan with the adjacent Atrush and Sarsang fields will deliver synergies and gives the enlarged company a significantly stronger platform to invest in the future development of Shaikan and Hamrin.
Jon Harris, Gulf Keystone
The companies put the premium for ShaMaran holders at 22.9% to Monday’s close, or 13.5% once Gulf Keystone’s planned $50m special dividend, about $0.23 a share, is taken into account. The Lundin family would hold 12.8% of the enlarged group.
The group would hold Gulf Keystone’s operated Shaikan field, ShaMaran’s Atrush and Sarsang stakes and a share of Hamrin. Gulf Keystone estimates combined output of 53,000 barrels of oil a day, but that depends on ShaMaran’s fields restarting. Combined 2P reserves, proven and probable, were 323 million barrels at the end of 2025.
For UK shareholders, the merger needs 75% of votes cast at Gulf Keystone’s meeting, expected around the 22nd of December. Gulf Keystone intends to move its primary listing to Euronext Oslo Børs. Because the deal is a reverse takeover under UK Listing Rules, its FCA listing is expected to be cancelled on completion, unless it applies for a different category.
The Kurdistan Regional Government must also approve. Completion is targeted for mid-2027, with a longstop date of the 31st of December 2027.