Gulfsands targets Iraq gas after reshuffling board

29 April 2008
Gulfsands Petroleum plans to raise£9.35m ($18.5m) via a share placement to develop a gas project in Iraq as part of an overhaul of the company, which has resulted in the resignation of its chief executive officer and finance director.

The relocation of its headquarters to London from Houston meant its chief executive, John Dorrier and finance head, David DeCort, left the company, a spokesman says. The board expects to appoint new London-based senior management shortly.

It expects to raise £9.35m by placing 5.5 million shares at £1.70 each with an investment fund and says the proceeds will primarily be used to fund its operations in Iraq.

Gulfsands signed a memorandum of understanding in January 2005 with Iraq’s Oil Ministry for the Maysan natural gas project in southern Iraq. The company expects to negotiate a contract shortly, following the recent completion of a feasibility study.

The company says the project will gather, process and transmit natural gas that is currently a waste by-product of oil production in the region.

Gulfsands says with production at its Khurbet East well in Syria expected to come onstream later this year it views London as a better base to serve its Syrian and Middle East assets than Houston.

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