Gulf Keystone Petroleum Regulatory News (GKP)

21 Jun 2007 16:35

Gulf Keystone Petroleum Ld21 June 2007 Not for release, publication or distribution in or into jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction 21st June 2007 GULF KEYSTONE PETROLEUM LTD ("Gulf Keystone" or the "Company") Notice of termination of Amalgamation with RAK Petroleum Gulf Keystone announces that the Implementation Agreement between Gulf Keystoneand RAK Petroleum will terminate at 5pm tonight. This termination has beentriggered automatically under the terms of the Implementation Agreement, due tothe occurrence of a termination event. On 4th June 2007, the Ministerconditionally approved the proposed Amalgamation and confirmed it to be a changeof control of Gulf Keystone. However, this approval was conditional upon a fee,of US$10 million, being paid by RAK Petroleum to the Algerian Treasury. Thisfee is in excess of the agreed threshold set out in the ImplementationAgreement, of one per cent. of the Total Consideration, and the letter did notconstitute a Minister's Confirmation as defined in the Implementation Agreement.The Company has today received notice from RAK Petroleum that it will not electto waive the termination event which leads to termination of the ImplementationAgreement in accordance with its express terms at 5pm this evening. Gulf Keystone will now continue to pursue its future independently of RAK Petroleum. Unless otherwise stated, defined terms used in this Announcement shall have thesame meaning as those used in the Circular posted to Gulf Keystone Shareholderson 13 April 2007. Enquiries: Gulf Keystone Petroleum +44 (0)20 7514 1400Bill GuestTodd KozelJon Cooper Citigate Dewe Rogerson +44 (0)20 7638 9571Media enquiries: Martin JacksonAnalyst enquiries: Nina Soon Hoare Govett Limited +44 (0)20 7678 8000Andrew FosterStephen Bowler Tristone +44 (0) 207 399 2470Simon Ashby-Rudd This information is provided by RNS The company news service from the London Stock Exchange