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.

Kurdistan Operational Update



Gulf Keystone Petroleum Ltd., an independent oil and gas exploration company, today provides an update on its operations in the Kurdistan Region of Iraq ("Kurdistan").



Shaikan Long Term Test Facilities



The recently constructed production test facilities near the location of the Shaikan-1 discovery well in the Shaikan Block (75% GKP working interest) are being commissioned. Initial flow rates are low to allow facility commissioning and will be kept low, pending receipt of oil assay results which will assist in determining a domestic sales price and allow finalisation of the oil sales contracts. Facility commissioning, assay finalisation and sales contract negotiation are expected to take several weeks. Test operations are well on track to reach the previously announced year end target production rate of 8,000 to 10,000 barrels of oil per day ("bopd").



John Gerstenlauer, Chief Operating Officer for Gulf Keystone said: "This marks the end of a seven month accelerated design and construction project to install the 18,000 bopd capacity facility and the beginning of a long term (18 to 24 month) production test of the top most reservoir in the Jurassic age section of the Shaikan well. This extended test of the upper portion of the Jurassic will give us valuable information on production characteristics, market logistics and oil sales procedures within Kurdistan. In addition, use of these prefabricated production facilities will serve as a model for future testing and production of other potential oil accumulations on our acreage."



Bijeel-1



Testing and evaluation are continuing on the MOL operated Bijeel-1 well in the Akri-Bijeel Block (20% GKP working interest). The previous announcement of a 3,200 bopd test already makes this one of the more significant discoveries in Kurdistan. Additional testing and evaluation work are still ongoing. However, the initial indication of the oil-water contact in this well is supportive of the concept of a single regional aquifer; this further supports the upside oil volume scenario for all four blocks in which GKP has an interest. In addition, it appears that the Bijeel structure could be a southern extension of the much larger Bekhme structure. The Bekhme exploration well is planned for late 2010 or early 2011.



Sheikh Adi-1



On Sheikh Adi-1, following the sticking of the bottom hole assembly at a depth of 450 metres and the necessary sidetrack to drill around the obstruction, the well is now at 500 metres which is the 20" casing point.



Shaikan-3



On the shallow Shaikan-3 appraisal well, near the site of Shaikan-1, the well is drilling ahead at 837 metres with the next casing point expected at 900 metres and the first zones of interest expected to be encountered soon after that.


cyril

great update!!! this should drive sp higher and higher

your chart is upside down!

Shares in Gulf Keystone Petroleum (LON:GKP) surged this morning on the back of rumoured stake building in the company. At 11am the shares were up 18.50p (+13.5%) at 155.50p.

Last week Gulf Keystone reported after-tax losses of $3.1m for the six months to the end of June - down from $5.6m last time. Executive chairman and CEO Todd Kozel said: "2010 has seen an unprecedented level of activity for Gulf Keystone. "Our extensive drilling programme is aimed at proving up last year's immense discovery, and we look forward to the first test production from Shaikan-1 in the coming weeks."

hey - you can't post old news like that and pretend it happened today!

Absolutely right cyners, not on that!!

it happened on 20th, and no one else posted it. i missed it. but mind you i'm downunder so old news to you in new news to me

Investors in the oil group Gulf Keystone have had a splendid few months, seeing the stock jump by more than 85 per cent, after Gulf hailed finds at its Shaikan block as transformational. The shares may not jump forward as they have in recent months, but the Independent still believes investors will make money. Buy, it says.
From ShareCast today.

23mln buy????

always unsettling when an executive director sells a slab of shares (333,333 of them)..... now we know why the fall over the last few days

in hind sight should have sold a few at the top and come back in now but no worries.,.

.

2 company sells in a period when they can---but they have sold exactly the same number as the options which they can take up when the sp went through 1.50. so it makes sense--Lord and Lady T are not made of money as we know from his record in the house!

loads going on in the near future....letting them go that cheap will prove to be a mistake.....the lord and lady must have bills to pay......

Looking good .....if only Sterling Energy could get lucky as well.....

Another excellent post by dalesman,i'm sure he won't mind me using it here?
cyril


Sorry Flaver for not making myself clear

Lets start again

GKP has a 75% stake in Shaikan, Texas Keystone 5% - effectively as you say 80%

This is then diluted due to the KRG carried interest and the backin rights to a fully diluted 51%

We gave away half our working entitlement to etamic. In the deal to retrieve etamics share we agreed to a 40% ASIP tax on profits. ASIP is a support and infrastructure tax levied by the KRG .

Now there are two ways to view this. You can use the fully diluted 51% and 9% entitlement under the PSC or you can reduce the WI to reflect this tax and use the full 15% working interest under the PSC contract. Both Daniel Stewart and I use the latter. This reduces the effective WI to 32.64% at Shaikan (this fig incorporates the Texas Keystone 5% reduced accordingly)

So our fully diluted WI after the ASIP tax is 32.64%

As a company we are not interested in the Oil in Place figures only in the recoverable barrels. 4.2b OIP at a 33% recovery gives 1.386bb we have 32.64% of this which gives 452.36mbo. Using a NPV10 calc I then attribute $3.50/barrel for this oil. This gives an unrisked valuation of 1.52 / share so everything else is in for free at the current share price!

HTH

Dalesman

$3.5 per barrel ?.....isn't that very low ?...

From the "UPS" thread

UPS
GKP 142.50p ( 142.25 / 142.50p )

Reason: Rising from oversold on the chart as is reaching the 20 days MA as a support on the past. A very positive level 2. Considered very undervalued on the oil find on Kurdistan as oil prices are rising.

Intraday

3 month Bollinger Bands,RSI, S Stochastic and 20 days MA

Charts - 2 days

The Kurdistan players are all rising...GKP,SEY and HOIL.

September 30, 2010

Gulf Keystone Narrowing Its Focus to 4 Major Blocks in Kurdistan Ahead of First Production Before 2011





Entering the interview with tabloid fuelled images of conflict and chaos, Gulf Keystones Finance Director Ewen Ainsworth relieved my misconceptions of Kurdistan in Iraq by confirming that whilst the company has some operational procedures specific to Iraq, the region is booming economically with Turkish companies in particular beating a path to the area. The companys share price took off in July, after it announced the establishment of an 18,000 bopd capacity oil production treatment and truck loading facility, and has maintained that momentum ever since. There are of course risks to operating in such a politically and socially vulnerable country, but the attractions are obvious and threats manageable.
The main source of the current excitement is the Shaikan Block covering an area of 283 square kilometres and operated by 75 per cent interest holder Gulf Keystone. Dynamic Global Advisors has independently estimated gross oil in place of between 1.9 (P90) and 7.4 (P10) billion barrels, with the structure approximately 30 kilometres x 5 kilometres in size. The company is aiming to be in production by the end of this year at a rate of between 8,000-10,000 bopd and will truck the...