Small cap broker SP Angel says oil producer Genel Energy (GENL) is the obvious candidate to acquire its Kurdistan peer Gulf Keystone Petroleum (GKP) as both companies report export payments for their crude oil from the Kurdistan Regional Government.
Despite this seemingly good news a fresh 11-year low for oil prices sees shares in both companies under pressure - Genel down 2.3% to 163p and Gulf Keystone off 1.6% to 15p.
Genel announced a $30 million gross payment for exports from the Taq Taq field on 5 January and subsequently a $30 million payment relating to its Tawke field. Gulf Keystone nets a gross payment of $15 million for crude from the Shaikan field.
SP Angel comments: 'Genel is consolidating its position in Kurdistan, and may yet prove to be the obvious candidate to acquire GKP, were it looking to further is exposure regionally. However, with a number of high profile exploration failures, the Genel star isn't as bright as it should be, which could make it a step too far.'