http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

Sold all.....can come back in via sipp...I hesitated but....it might go back to the 90's or just around the pound mark for some time....or it might climb, but that's pushing it in my view...

Was it something I said...?...down 8p...

It wasn't something you said, it was something you did!! You obviously had a substantial holding rf !

boiled over ..... -8p????? ..... where did you get that from? ..... lowest today was 107 and currently 109.35 mid

lost my impetus years ago..... gold nearing 1200$ big miners up...

From 116p down to 109p....7p drop or so....I had a lot more a few months ago....I'll just watch from the sidelines for a bit...might even come back in later today depending on the sp......what a stock...fantastic....!.

rf market cap around 550m at present.

Keeping an eye on sp....but I'm wondering : what is going to push this much higher now ?.

more buyers than sellers!
more seriously, a perception that these guys really are sitting on Eldorado and a not unreasonable hope that a bigger fish will swallow them

GULP!!

you're just an anthropomorphosised emu and don't eat fish!

frontera resources/FRR

I love it when you get dirty cynic..:))

Gulf Keystone Chalks Up Yet Another Significant Drilling Success On Its Iraqi Kurdistan Acreage





Junior E & P Gulf Keystone made what has been described as a company making find on its acreage in Iraqi Kurdistan. Having no production as yet and with a tortured relationship with the Algerian oil and gas authorities, which it wants to put behind it, the AIM listed GK was more than pleased when its Shaiken-1 well came good, essentially in the shallower Jurassic zones of the formation down to 2,055 metres
GK has revisited the Triassic zones, which did not come up with spectacular results the first time around and has now made a huge discovery, which has meant Shaikan- 1 is even more company making than it was, if you follow me.

For those who are bit unclear about the zones here is some background. Earlier in November GK said it had got an independent evaluation of the Shaiken wells shallower zones results, which looked very good. Dynamic Global Advisers the third party assessors reported that the Shaiken-1 well had discovered a significant resource of low gravity oil in the Jurassic Barsarin, Sargelu, Alan, Mus and Butmah formations. The range of oil-in-place for the Shaiken structure is estimated to be gross 1.0 to 5.3 billion barrels of oil, with a mean of 2.8 billion barrels.

The large discovery in the Jurassic was blighted a bit, the DGA study said by the heavy nature of the crude (between 17 and 22 degree API).This can affect recovery rates typically between 10 to 20 per cent of the oil-in- place is recoverable with this kind of crude. GK said: Given the preliminary nature of the DGA report, and with Shaikan still an active exploration well DGA were not asked to provide analysis of recovery factors.

The report also said that although there had already been some positive results from deeper Triassic zones, further drilling would take place and this could add materially to the resource. This is what has happened. The company has announced the most recent Triassic discovery flowed at 10,000 boepd, resulting in an aggregate actual test rate of 20,000 boepd from the Jurassic and Triassic tests done thus far in Shaikan-1. The company conducted its second test in the Triassic at depths of 2,582-2,849m and produced 6,000 bopd of 53-55 degree API oil and 2million cubic feet gas, while the first Triassic test had flowed 2,000 bopd and 2 million cf/d previously.

However, this first Triassic test was severely limited by surface restrictions and downhole tool problems. Internal engineering analysis of the test data indicates that the first Triassic zone could have flowed at rates up to 14,000 boepd, giving the Triassic section alone potential aggregate rates of about 24,000 boepd . In other words the second test could have performed better than it did.

Broker Fox-Davies Capital points out the Shaiken-1 well has potentially discovered well over 1,000m of oil column and in excess of 200m of net pay, of which only 30 per cent has been tested. Potentially there could be tests of 31,000 boepd of aggregate production ( 7,000 bopd from the Jurassic and 24,000 boepd from the Triassic. This aggregate potential should rise significantly as the company undertakes longer term well tests.

On the back of these tests Fox- Davies is raising its oil-in-place estimates for the Triassic section from 0.5 billion to 0.5-1.5 billion barrels of oil equivalent (boe) and the recovery factor from 40 per cent to 50 per cent for that section, given the high oil density. This compares to the 18 per cent recovery factor for the Jurassic portion of the reservoir, resulting in an aggregate 28 per cent recovery from its own 4.4 oil-in-place estimate. Fox Davies reckons that the impact of the resources revision is about 25p on the share price and it has left its probability of success unchanged at 67 per cent for Shaikan and 50 per cent for the other three, as yet undrilled, blocks in Kurdistan.

Gulf Keystone is not without its detractors, as we have reported. Last summer its decision to exit Algeria created bad will among investors and its erstwhile partner BG. It should be said that the Algerian authorities were making some pretty harsh and unreasonable demands over development costs on some pretty indifferent assets, the way Algerians do.

Also the introduction of a little known private investment fund ETAMIC in its Kurdistan venture raised some eyebrows at the apparent dilution of this potentially transformational exploration project.

But all that said the discovery is a vast, jackpot-type find for a small company like GK. Even after the ETAMIC deal, GK retains a meaty 50 per cent stake in the project. GK is now a Kurdistan play. Despite some niggling some niggling doubts over the right of title, Kurdistan has become a world class frontier province with companies big and small making very large discoveries there.

GK should hold investors interest going forward. The company now has interests in four blocks, Shaikan and Akri Boijeel, which were awarded in November 2007, as well as the Sheikh Adi and Ber Bahr blocks, awarded last summer. GKs technical team anticipates that the potential combined prospective resources of these two new blocks will exceed one billion barrels of oil-in-place.

The shares have seen a very good rise this year up from 4.8p in February to 109p recently. In the light of the triumphs in the Triassic, Fox Davies has raised its 12 month target price to 200p.

kuzemko - from where did your report come and on what date?

cynic

from the Oil barrell.com
December 01, 2009

Gulf Keystone Chalks Up Yet Another Significant Drilling Success On Its Iraqi Kurdistan Acreage

Gulf Keystone Chalks Up Yet Another Significant Drilling Success

thanks master ..... i used to follow oilbarrel but came to the conclusion it was little more than an advertising platform for the companies

Not long now to find out who gets Iraq oil fields:

Published December 1, 2009
BAGHDAD - The oil ministry is now making plans to host the Dec. 11-12 oil bidding rounds at its Baghdad headquarters instead of the al-Rashid Hotel in the more secure Green Zone.

The headquarters was the original location slated for the auction, which will see as many as 44 foreign oil companies in a bidding war for 10 oil field projects.

damp squib that was last time too
prob for GPK is different
they have the oil but the baghdad wallahs won't let the kurds export it

From Digital look:
Oil Explorers Target Kurdistan Riches
By Lee Wild, ShareCast Journalist

Oil companies are swarming all over the Kurdistan region of northern Iraq, keen to exploit its huge reserves, but political tensions have put a brake on production and look unlikely to be resolved until well into next year.

Research by analysts at Canadian broker Canaccord Adams found the value of shares in public companies active in Kurdistan has increased by $40bn, or 40%, since February.

When new entrants are included, the market cap of companies digging in the region now stands at $200bn. And theyre having some success.

London-listed Heritage Oil, rated a buy at Canaccord with 713p price target, has increased its internal resource estimate for Miran West ranges from 2.3 to 4.2 billion barrels of original oil-in-place, while 500m AIM company Gulf Keystone Petroleum has an external report estimating 1.0 to 5.3 billion barrels at Shaikan.

Elsewhere, Sterling Energy is on course to start drilling at its Sangaw North prospect this month. An independent review has given a best estimate of gross prospective oil resources for the Cretaceous interval of 804 million barrels.

Canaccord believes the region bordering Turkey and Iran provides unique opportunities for exploration companies seeking exposure to large-scale reserves.

They say few areas can match Kurdistans potential, which could represent as much as half the estimated 75 billion barrels of undiscovered oil in Iraq. Thats attracted an increasingly large group of independents who, over the past nine months, have delivered encouraging results from six exploration wells. At least eight more wells are due to be drilled over the next six to nine months.

The traditional majors have given Kurdistan a wide berth, choosing to focus their resources on the southern fields to be awarded by Iraqs central government.

But theres good reason for that. Several significant issues concerning the oil rush in Kurdistan remain outstanding, meaning extra hassle for the big guys that they dont get further south.

Exports from new fields in Kurdistan - Taq Taq and Tawke began in June, but stopped four months later as the Kurdistan Regional Government (KRG) and the central government of Iraq failed to agree on a method of direct payment for exports.

Baghdad maintains that the KRG cannot sign contracts without central government approval and continues to ban companies with stakes in Kurdistan from bidding in Iraqi licensing rounds.

Kurdistan is also unable to use the existing export pipeline running from Kirkuk in northern Iraq to the Turkish Mediterranean port of Ceyhan without Baghdads blessing.

While Turkey has become friendlier towards the KRG recently, it will not risk its relationship with Baghdad by sanctioning a cross-border pipe with the KRG, Canaccord says.

The global oil industry has been waiting for years for passage of the legislation, which includes a law on how to share revenues from oil exports between Iraqs various regions and a law resurrecting the national Iraqi oil company.

It doesnt expect any resolution until the political landscape changes following the federal Iraqi parliamentary elections on 16 January 2010.

But itll take more than a little uncertainty to deter the independent explorers given the potential size of the rewards.