LONDON, April 14 (Reuters) - Oil producer Gulf KeystonePetroleum said on Thursday it would have to make use ofa grace period for an upcoming bond interest payment, sendingits shares down as much as 35 percent.
The company, whose main assets are located in IraqiKurdistan, has been grappling with low oil prices and slowpayments from the Kurdistan Regional Government for oilproduction.
It said it needed $71 million just to maintain currentproduction levels at its Shaikan oilfield at 40,000 barrels perday (bpd).
"Gulf Keystone announces, following discussions with thecompany's advisors, its current intention to utilise the graceperiods for the upcoming 18 April 2016 coupon payments," thecompany said in a statement.
Its shares fell 35 percent to an intra-day low of 4.50 penceper share following the announcement. (Reporting by Karolin Schaps; editing by Jason Neely)