Gulf Keystone Petroleum Ltd is pleased to announce that it has negotiated an agreement with BG North Sea Holdings Limited ("BG") that settles, on confidential terms, the claims and counterclaims between the parties in the previously announced arbitration.
The agreement provides for the immediate stay of the arbitration and the proposed transfer of the Company's interests in the Hassi Ba Hamou ("HBH") Permit for a net cash payment from BG of $9.9m to GKP. The agreement is subject to the conclusion of separate transfer documentation which will require the approval of Sonatrach and any necessary Algerian governmental authorities. Whilst the Company is confident that the necessary approvals will be forthcoming, there is no guarantee this will be the case.
Todd Kozel, Executive Chairman of Gulf Keystone, commented:
"We welcome the agreement with BG which is a significant step in the strategic refocusing of the Company's activities in Kurdistan. Following this transaction, we hope that further announcements will be made with respect to the orderly disposal of the Company's other interests in Algeria."