----ADDS BROKER COMMENT ON AKRI-BIJEEL----
Shares in Gulf Keystone Petroleum (LON:GKP) rose 10 per cent in morning trade as it hit back at “unfounded speculation” it is planning a cash call.
GKP also said it was currently taking legal advice with regard to the rumours and in a bid to prevent a repeat of the speculation seen on bulletin boards and social media.
Chairman Todd Kozel told investors: "We are working hard to create shareholder value via the continuing 2012/2013 exploration and appraisal programme on our world-class assets in the Kurdistan Region of Iraq.
“We will not tolerate malicious attempts to damage the company's reputation and share price.
“We have instructed the company's lawyers to use all means necessary to protect our shareholders from this malicious and unfounded attack."
Today’s announcement gave the stock a much needed lift following a three-month run in which it has more than halved in value.
At midday GKP shares were changing hands for 208.7 pence, up 19.32 pence, valuing the group at £1.5 billion.
Separately, it revealed it is negotiating with “several interested bidders” for its 20 per cent stake in Kurdistan’s Akri-Bijeel block in the Kurdistan region of Northern Iraq.
City broker Seymour Pierce estimates this marginal asset alone to be worth in the order of US$200 million.
However analyst Dr Dougie Youngson said a competitive bid situation could elicit an even higher price.
“This level of cash injection would negate the requirement for an equity fund raise in the short term,” he concluded.