Gulf Keystone Petroleum announces Iraq exploration

Oil industry giant Gulf Keystone Petroleum has raised $200 million (£127 million) to invest in oil exploration in Iraq.

It intends to use the money to fund the development and exploration of its oil programme in Iraq's Kurdistan region, an area known to be oil rich but off-limits during the reign of Saddam Hussein.

The region is thought to contain some 40 billion barrels of oil which are expected to be easy to extract.

"Gulf Keystone's forward strategy is about successfully proving the full potential of our assets in the Kurdistan region of Iraq and becoming one of the top exploration and production players in the FTSE 250," said Todd Kozel, executive chairman of the firm.

He said that the shareholders and new institutional investors are confident about the plans.

The organisation aims to be producing 15,000 barrels a day by the end of the year but its share price has now dropped by six per cent to 152.45p.