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.

"Gulf Keystone announces the commencement of drilling operations on its Sheikh Adi-1 exploration well effective August 4, 2010. This is the first exploration well to be drilled on the Sheikh Adi Block immediately to the west of the Company's Shaikan Block, site of last year's discovery of the giant Shaikan oil field. The Company has an 80 percent working interest in the Block and is carrying the Kurdistan Regional Government's 20 percent working interest.

The well design for Sheikh Adi-1 has been modified to drill through the geopressured sections of the Triassic. This high pressure interval forced the cessation of drilling on Shaikan-1, at the point when the well experienced the inflow of significant volumes of oil and gas from this section of the Triassic. The Sheikh Adi-1 is designed to drill through the Cretaceous, Jurassic and the Triassic age rocks, to a planned total depth, depending on well results, of 3,850 meters. Drilling is expected to take 6 months. The Company's estimated oil-in-place resource potential for the Sheikh Adi structure is in excess of one billion barrels."

All looking positive.

wow great news
(NICEONECYRIL in 1227 blue sky thinking)
looks like sky in the limit for gkp

5th Aug 2010
Jurassic Zone Testing on the Shaikan-1 Discovery Well

Gulf Keystone announces the results of further testing of the Butmah (1783m to 1814m) section of the Jurassic on its Shaikan-1 discovery well. Final production rates during this week's re-test were measured at 4650 bopd with an API gravity of 17.68 degrees and a gas oil ratio of 34 standard cubic feet per barrel of oil at a flowing wellhead pressure of 295 psi. This is in line with the previously estimated rate.

The Mus (1627m to 1667m) section of the Jurassic will be re-tested next, followed by the Sargelu (1450m to 1510m), which will then also be configured for long term production testing.

John Gerstenlauer, Chief Operating Officer for Gulf Keystone said "I am encouraged by this verification of the flow capacity of the Butmah formation. This test represents another step in our efforts to confirm and define the magnitude of the Shaikan discovery. The well has now demonstrated an aggregate flow capacity of over 20,000 bopd from just a fraction of the total prospective interval. I look forward to further testing and also to commercial oil sales from the long term test of the Sargelu, commencing later this year."

It's like the good old days again......a takeover bid would have to be above 1.50 to succeed with these production figures coming up....

Above a pound again....and rising......wish I did not close my spread yesterday now...still have the shares .....

I said to be patient and here we are....102p.....this was 67p just a few months ago.....

Are we in the foothills of a takeover bid ?....I'm starting to wonder as this is flying now....

106p trades going through......

Where is everybody ?.....come on drop the beach towels and leave them to the germans ...back to your desks....

By jove ! ....108p....

Can't get away form the pool ?...invent an excuse : say you're having an affair !...anything.....become a chocoholic...(urgent chocolate bar need..)....

excellent

StockMarketWire.com
Gulf Keystone Petroleum has completed the re-organisation of its interests in Kurdistan.

The firm said certain production sharing contract amendments had been approved and executed by then Kurdistan regional government.

Key changes to the proposals announced on 10 March are:

* Previously announced payment dates for the infrastructure support payments have been revised so that such payments are fully payable on 15 August.

* The parties to the Shaikan Block and Akri-Bijeel Block PSCs have agreed to extend the period that the KRG may exercise the option of third party participation to 30 June 2011.

* Clarification that the existing Ber Bahr Capacity Building Payment of $10m is now due on declaration of the first commercial discovery.

Nice increase....the highest this has ever gone is 129p for a few moments before remaining at 120p.....not far from that now....

in a soggy market, GKP remains firm with bid outnumbering offer 2:1 .... volume good without being exciting

just just just possibly something on the bubble here ..... observe on L2

From ZENGAS
When you consider that GKP/DGA have said the potential exists for 18 billion bls oip at Shaikan + a further 5 b/boe (gas).

On a 51% net interest and 30% recovery for oil - they are chasing the order of 2.75 billion barell oil reserves.

With Sheik-Adi currently drilling, the first signs of any oil may create serious excitement.
At an 80% net interest it would take roughly 4 billion bls oip to give about 1 billion barrel reserves - huge for any company the size of GKP..
Potentially worth 240p+ share on appraisal.
Could add more than 100p on a successful drill and a mention of what the expected oip numbers are if close to above.
(Again stressing 'subject to success').

Both Shaikan and Sheik-Adi are similar sized blocks - so who knows what the potential oip similarities are.
(Doesn't bear thinking about if something similar to the Shaikan figures came about).

With results to come from -

2nd flow test zone at Shaikan.
Production (sales) from 3rd zone at Shaikan.
Akri-Bijeel - could point us to a further 100 - 500 mmbo net reserves.

Add the above up and still excluding 40% net at BerBahr - you have a company that could via 3 blocks have potential for 1-4 billion barrel plus, oil reserves.

Slightly further out next 2-3+ months
Shallow drill at Shaikan which may confirm more oip.
Appraisal drilling.

Imo - enough going on that could drive us to 250p+ irrespective of any bids.
I think this is why there is renewed buying/interest in the company.

The cash was raised (one of the biggest ever on AIM this year almost $200m - that many doubted would happen).
Renegotiation/Etamic - interests to GKP ratified by KRG - again many doubted - now in place.
2 discoveries on 2 blocks.
3rd block drilling.
Production facilities near term.

GKP clearly demonstrating that they have and can deliver as evidenced by above.

Maybe finally, people/doubters/those sitting on the sidelines before - are really starting to take notice at GKPs huge potential and realise that this company really is getting on with it's business and delivering on its strategy !!


cyril

does one assume that Zengas is just another BB poster?
if so, of limited value

123p.....impressive rise......I know that 18 billion seems ridiculous, but the sp if that was the case would be 20.....nothing less.....so just a fraction of that could push this north of 150p....