12th September 2013
Shares in FTSE Aim 100 listed firm Gulf Keystone Petroleum (GKP) have soared following a court ruling in London.
On Tuesday, following the decision, the stock surged by 17%. The firm, which has long been a takeover target, conducts its principal activity of oil exploration in the Kurdistan region of northern Iraq.
The oil producer has been in a well-observed legal battle with Excalibur Ventures over ownership claims of oilfields in Iraqi Kurdistan. The court ruled that Excalibur had no claim over any of Gulf Keystone Petroleum’s assets in Iraq.
According to share data site, Digital Look, the consensus among stockbrokers is that the firm is edging towards a “strong buy” recommendation.
In the past week, the firm’s shares have shot up up 20% over the past three months they have jumped 38%. The shares are currently trading at 204.75p.
Analysts said the defeat of the $1.6bn (£1bn) claim would make Gulf Keystone more attractive to big oil-buyers keen to exploit Kurdistan, according to a report in The Telegraph. The group publishes its interim results on 19 September.