T5 set for summer deal with Gulf Keystone

T5 Oil and Gas — the Dublin and London-based exploration firm headed up by former Tullow Oil directors — is expected to take control of loss-making UK explorer Gulf Keystone before the summer.

The transaction is likely to take the form of a $50m (€47m) reverse takeover, with Gulf paying that much in its own shares for T5 and the latter, through that shareholding, effectively taking control of the London firm and inserting its own board and management.

The much-touted deal was thought to have been sidelined by Gulf’s recent $40m capital raise and the departure of chairman Simon Murray who was in favour of talking to takeover or investment partners as the preferred rescue remedy for the business.