Oil exploration group Gulf Keystone Petroleum will see its shares suspended on Tuesday ahead of a key court judgement, but investors are piling in ahead of the trading halt.
The company has been in dispute with US based Excalibur Ventures, which claims it has the right to 30% of Gulf's oil field in Iraqi Kurdistan.
The commercial court in London now plans to rule on the claim at 10.30 on Tuesday. Gulf said:
As the decision will be given in real time in open court and in order to maintain an orderly market in the company's shares, Gulf Keystone confirms that trading in its shares on AIM will be suspended from 7.30 a.m. on 10 September 2013 and this suspension will remain in place until such time as the company releases an RNS giving details of the decision, which is expected to be later the same day.
Gulf has been tipped as a takeover target for oil majors wanting to increase their presence in the semi-autonomous region of northern Iraq, and investors obviously feel that the court decision could finally pave the way for action. But analyst Jamal Orazbayeva at Westhouse said:
The market may perceive the conclusion of the case as a removal of an obstacle towards the sale of the company and thus, the resolution may have a positive impact on the day. However, we believe that it is the political uncertainty in Kurdistan rather than the litigation case that is the main obstacle for a potential takeout. We think that if the shares react positively on the news, it might be a good opportunity to exit.
Gulf shares are currently 2.5% higher at 188p, valuing the company at nearly £1.7bn.
