Retail investors have lost millions investing in Kurdistan focused oil companies. Kurdistan attracted some of the biggest names in the oil industry, promising investors the opportunity of fantastic gains and chunky dividends, but all it has delivered is painful losses and broken dreams for hundreds of retail investors. The latest blow came after Gulf Keystone Petroleum. Management were forced to admit that the end is near unless it can come to an arrangement with its lenders. The company is facing looming interest payments in April and October, and needs to repay $250m by April 2017. The cash on the balance sheet fell to $51m on March 16, down from $234m in June 2014. The shares tumbled almost 30pc last week to a record low of 9.4p as the company struggled to find a buyer. The company effectively put itself up for sale through a strategic review launched in February last year. While the losses are painful they should come as little surprise. The company had a poor track record of hitting production targets as far back as 2013. Founder Todd Kozel retired as chief executive and three other non-executives also resigned in 2014, which some thought would pave the way for a bid. Genel Energy, the other Kurdistan-focused oil group, has delivered similarly dismal returns for investors under the ward of ex-BP boss Tony Hayward. Last month the shares col- lapsed by 40pc after it admitted one of its biggest assets, the Tak Tak oil field, was about a third of the size of initial estimates.
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