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.

Have to say : 16.13....quarter of an hour before close,...funny time to update the market.

i know for sure there are some very big projects scheduled for both kurdistan and algeria over the next few months, but don't know the locations

This should go further tomorrow morning Cynic....haven't reached the bottom of the well yet.....Heritage oil should be updating the market soon and there is also Sterling Energy...

PS : check out vastexploration.com : kurdistan oil maps.

Only 20% interest in this one, guys. Let's not get too carried away!

No, but 2 wells out of two....it gives confidence.

Harry 20% of 200/250mbo is not to be sneezed at and they've not reached total depth yet?
cyril

Perhaps the reason for ho;ding back on share plavement?

After extensive recent discussions with interested parties,GKP has negotiated with the Kurdistan Regional Government (KRG) toreorganise the Company's interest in Gulf Keystone Petroleum International (GKPI) following a material default by ETAMIC.

The reorganisation and transactions detailed are subject to KRG approval and signature and therefore the terms may change. Discussions regarding the proposed re-organisation remain ongoing. The main components of the proposed re-organisation and transaction as they currently stand are:



The 50% shareholding of GKPI held by ETAMIC reverts to GKP. GKPI will then be a 100%
subsidiary of GKP.

Following default by ETAMIC, GKPI will pay $40 million to the KRG which is an Infrastructure Support Payment due and owing by ETAMIC ($10 million of which is payable within 30 days of the signature of an Infrastructure Support Payment Agreement by the KRG and the remaining $30 million of which is payable within 90 days of signature), in return for GKPI maintaining its 80% interest in Sheikh Adi and 40% interest in Ber Bahr.

GKP will make a termination payment of $12 million to ETAMIC in full and final settlement of all of their rights which is payable within 30 days of completion by GKP of a significant fundraising after Q1 2010.

The KRG shall also be entitled to receive an Additional Infrastructure Support Payment to be
allocated to social programs, amounting to 40% of GKPI's entitlement to Profit Petroleum derived from GKPI's share of profits in all four production sharing contracts (PSC's).



The net effect of the total expenditure of $52 million is that GKP's net share in each of the four PSC's will be as follows:





PSC


Old (%)
Old Fully Diluted (%)


New (%)
New Fully Diluted (%)(3)

Shaikan
37.5
25.5 (1)
75
51 (1)

Sheikh Adi
40
40
80
80

Ber Bahr
20
20
40
40

Akri Bijeel
10
6.4 (2)
20
12.8 (2)




(1) Minimum GKPI holding subject to Government back-in right of 20% and Third Party back-in right of 15% if exercised in full.

(2) Minimum GKPI holding subject to Government back-in right of 20% and Third Party back-in right of 20% if exercised in full.

(3) Subject to KRG 40% share of GKPI's profit petroleum.



The reorganisation and transactions detailed above are subject to KRG approval and signature and therefore the terms may materially change. The Company will update the market at the appropriate time when final agreements have been signed by all relevant parties. The need for additional funding is recognised and the Company is considering its funding strategy in this regard.
cyril

Fund raising, we all knew that was coming....but much bigger ownership which I think is good....

sp slipping market doesn't like this news.

Two differing points of view from the FT oil sector watchers:
*"Basically ETAMIC, GKPs partner in the KRG, defaulted and as a result ETAMIC is becoming a 100% subsidiary of GKP. As a result, GKP has to pay $40m to the KRG government and $12m to ETAMIC as a termination payment, payable within 30 days of completion by GKP of a significant fundraising after Q1/10.
As this wasnt enough, the KRG will also be entitled to receive and additional Infrastructure Support Payment amounting to 40% of GKPs entitlement to profit oil. They also say twice in the press release that the KRG has not yet agreed to the terms change and these terms may materially change.
Bottom line: on top of the capex capital GKP does not have, they now have to come up with $52m dilution here we come SELL"

*"The positive drilling update at Akri Bijeel comes as little surprise given the share price move of +20% over the past week. It is still too early in the programme to adjust pre-drill recoverable resource estimates however, the fact that that the well appears not to have tested the shallower Cretaceous target zone (this held 17% of the Oil in Place of the recent Shaikan discovery) could well have a negative impact on the overall recoverable resources.

VALUATION AND RECOMMENDATION Gulf Keystones fully diluted interest in the Akri Bijeel well is just 6.4%. (The press release refers to 20% interest however, this is 20% held by GKPI a 50/50 venture between Gulf Keystone and the little known ETMAIC private equity company and pre-any KRG back-in rights) Based upon our unrisked pre-drill resource estimate of 150 mmbbls (gross) we believe that Akri Bijeel is worth just 3.5p/share to Gulf Keystones NAV."

Could be a very good move by GKP board. They have shed their mysterious partner which the city boys did not approve of and they have sold Algerian assets so money coming into the pot. This clears the decks for a T/Over or a new buy in partner--Hunt oil or MOL for instance. It won't be long before the jungle drums start up!! imo**

Business Financial Newswire
"Gulf Keystone Petroleum has raised 16m through the placing of 20,915,034 new common shares at 76.5p apiece with existing and new institutional shareholders.

The proceeds will be used towards funding its ongoing activities in the Kurdistan region of Iraq and the company says it continues to review further sources of funding to meet its ongoing capital requirements.

Gulf Keystone plans to start the acquisition of 3D seismic over the Shaikan structure during the first quarter of 2010.

The work will be conducted by Terraseis.

It said the acquisition of 3D seismic over the Sheikh Adi structure was planned in the event of a successful Sheikh Adi exploration well and following on from the seismic programme on Shaikan."

HOIL is down...this is breaking out....one taking over the other ?.

hoil full of money to spend, and kurds fields are thier eye in gead so the idea seem plausible

This is starting to look like a bargain.....remember the 120p plus days...now just hovering above 70p.....forgotten about the shaikan well have we ?.

This going to be ripe for a takeover if the sp remains low like this...

only if someone wants to buy it
i am out of these, probably at a loss, but i reckon XEL is a better bet than here at the moment ..... and CHAR continues to astound me

In GKP and XEL....but not CHAR...

From newspaper tips,

DAILY EXPRESS

Gulf Keystone Petroleum boosted by Hunt Oil bid talk

cyril