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.

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....

RSI shows overbought or......

It's impossible to take profits with such a rise....and no end to it yet it seems with plenty more updates to come from this gem of a company....

I would buy not sell imo.

lots of buyers and relatively few sellers, and high volume too

Bet pro whats his face wishes he still held these......not long ago he called this a bag of sh*t........lol ....ROFLOL.,.

Banked a small portion......not sure where the market is going.....but this could be good for 200p by the end of the year....

excellent
if we keep getting news like this
this will be where HOIL sp is

Ten Fold Increase in Mus Test Rates During Jurassic Zone Testing on the Shaikan-1 Discovery Well

"Gulf Keystone announces the results of further testing of the Mus (1,627m to 1,667m) section of the Jurassic on its Shaikan-1 discovery well. Final, stable, production rates during this week's re-test, using a much improved test setup versus the original 2009 test, were measured at 1,250 bopd with an API gravity of 19.7 degrees and a gas oil ratio (GOR) of 10 standard cubic feet per barrel of oil at a flowing wellhead pressure of 50 psi. This natural flow rate represents a ten fold increase over the 128 bopd measured during the initial test in 2009.

Tests using a low capacity electric submersible pump (ESP), resulted in rates up to 2,250 bopd.

The workover rig will now begin operations to complete the Shaikan-1 well in the Sargelu (1,450m to 1,510m) section of the Jurassic, and the well will be configured for long term production testing.

Production testing is expected to last for at least 18 to 24 months, and it will accumulate valuable data related to reservoir characteristics and oil recovery factors."

Excellent news,it just gets betterer and betterer.
cyril

perhaps i'm being very stupid, for though this is very good news, the amount of oil being extracted is still very small

August 06, 2010

Gulf Keystone Petroleum Reports Double Drilling Success In Iraqs Northern Kurdistan As Sterling Energy Continues With Its Marathon Sangaw North Drill





Region Shares in London-listed Gulf Keystone Petroleum moved upwards this week on more positive drilling news from Kurdistan. Further testing at its Shaikan-1 discovery well confirmed estimated flow rates of more than 20,000 barrels of oil per day (bpd) from just one part of the well. It means ultimate flow rates could potentially be higher.
The company has also kicked off drilling of the Sheikh Adi-1 exploration well, the first on the Sheikh Adi block, which sits immediately to the west of the Shaikan block, the site of last year's big oil discovery. On Thursday, Gulf Keystone announced that testing of the Butmah section of the Jurassic on its Shaikan-1 discovery well measured at 4,650 bpd.

The Butmah section is located between 1,783 metres and 1,814 metres. The crude oil from the site had an API gravity of 17.68...

kuz this does not seem to agree with the RNS today which said 1250bopd (not a lot)?

total flow rate bpd tested so far i believe is in the region of 21 / 22k bopd with more expected from other drills - hoping for 2 by year end or sooner - maybe more - just need the politicals sorted then imo gkp if it is a positive result will really start to fly - gla

Got too nervous & sold today on the current rise. Can't quite see any reason to hang on for now.

when it hits 2.5 or 3 what then you might see one