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.

and i'm quite pleased i only have a 50% "norm", but not particularly tempted to buy more

I'm glad you're not my agent...50%..phew !...

whatever that may mean ...... anyway, as i note i bought at 140, i'm still comfortably in the money

At a loss...but I think we have seen this sort of problem before and GKP have come through it.....

fact that UK courts rejected the case. US will follow.

i agree, but just read why the UK courts rejected the case presented .... it wasn't because there was no prima facie case to answer!

This is too cheap... bought more at 160p just now.

TIDMGKP

RNS Number : 9144Y

Gulf Keystone Petroleum Ltd

05 January 2011

Not for release, publication or distribution in or into the United States or jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction.

05 January 2011

Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")

Kurdistan Operational Update:

Completion of Drilling and Testing Operations on the Shaikan-3 Shallow Appraisal Well

Gulf Keystone announces the completion of drilling and testing operations on its Shaikan-3 shallow appraisal well. This well was designed to drill and test the Cretaceous intervals in the immediate vicinity of the Shaikan-1 discovery well. The Company has a 75 percent working interest in the Block and is partnered with the MOL subsidiary, Kalegran, and Texas Keystone which have the remaining 20 and 5 percent working interests respectively.

The well drilled the entire Cretaceous interval and on into the Jurassic Sargelu formation. A total of two open hole and two cased hole flow tests were conducted in the Cretaceous. As a result of these tests, log evaluations and recovered fluid samples, the Company's current P50 to P10 estimate of Garagu oil in place volumes is 220 million to 2.2 billion barrels. These Garagu resources are in the lower portion of the Cretaceous (between 1060m and 1157m). The Shaikan partner group will formulate a development plan for these resources.

The large spread between P50 and P10 volumes is due to the uncertainty with respect to the exact nature of the Cretaceous down dip, on the flanks of the Shaikan structure. If the Cretaceous is oil bearing near the flanks, then the P10 volumes become more likely and it is possible that the oil will also be less viscous and of higher API gravity.

In the mean time, due to the different characteristics of the Cretaceous oil, the Shaikan-3 well has been completed as a second Jurassic producer from the Sargelu formation and will flow into the same test facilities as the Shaikan-1 well.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented "The Cretaceous resources evaluated by the Shaikan-3 well are massive by any standard. They represent a significant oil resource for Kurdistan and Iraq. It is a further demonstration of the huge hydrocarbon potential of the are

Notice there is no "Pleased to announce......"

...........

True bit then theirs this,
Gerstenlauer, Gulf Keystone's Chief Operating Officer commented "The Cretaceous resources evaluated by the Shaikan-3 well are massive by any standard. They represent a significant oil resource for Kurdistan and Iraq. It is a further demonstration of the huge hydrocarbon potential of the are
Also ref to increased production,so imo,played down a little?

sp didn't get that excited, unfortunately.,.

there is also the legal challenge overhanging, vexatious as that may be deemed

From Evo Securities:
"Our assumed P50 recoverable resource estimate of 66mmbls for the Cretaceous Garagu formation is hardly transformational for the Shaikan story but is an incremental addition. However, the lack of detail on the flow test rates, oil viscosity or API is noteworthy. The shallow Shaikan-3 appraisal well, targeting the Cretaceous formations which could not be logged during the initial Shaikan-1 well, has completed drilling.
Evaluation suggests a P50 to P10 OIP Volume of 220mmbbls to 2.2bnbbls which, using a 30% recovery factor, suggests a recoverable resource estimate of 66mmbbls to 660mmbls. There is no indication of the P90 OIP number which could be as low as 55mmbls. Two open hole and two cased hole flow tests were conducted but GKP has not released the results so it is difficult, from the outside, to understand how commercial this discovery is. The well has been completed as a producer in the Jurassic Sargelu formation and will add to the current production which is being sold domestically in the absence of a payment resolution. For now we leave our target price and recommendation unchanged. Next news flow should be a result from the Sheikh Adi exploration well later in 1Q."

http://www.fox-davies.com/media/286397/fdcgkpjan52011.pdf

........A positive result that adds to the 4.2Bbbl existing OIP estimate based on the
Shaikan-1 discovery well. However the P50 estimate of 220mmbbl is lower than our
expectation of 600mmbbl OIP for the Cretaceous formation. This has a 7p negative
impact on our risked NAV but none on our 200p target price which was set very
conservatively with respect to NAV..........


.

"Negative ending" write up in Shares Mag it seems.... long interview to read, little snippet of it below....

http://www.sharesmagazine.com/


Page 30....


".............Summary

Definitely not for widows or orphans since an investment in Gulf Keystone takes in significant technical and political risk. There are a number of potential catalysts in 2011 that could reward an investor brave enough to take a punt but
at 173.2p Shares would steer clear.

Bull case

Active 2011 drilling campaign
Potential for resolution of oil dispute in Iraq
M&A interest

Bear case
Risks to ownership of assets
Technical obstacles
Lofty valuation

..........."

sold the balance of mine yesterday

Sold half at 189p back in Nov, the rest are a free ride plus a small lump I bought at 170p so will old for now......I think.,.

Exports can start, but on a "no profit" basis.

Still, I suppose people are getting salaries and directors are getting paid so the only losers are the shareholders really as it stands.......

http://www.thepeninsulaqatar.com/business-news/139660-iraq-to-pay-costs-to-foreign-oil-firms-in-kurdish-region.html

.

i note that little gem was dated very early yesterday (20th) morning, so surely already accounted for

Gulf Keystone today provides an update on its active work program in Kurdistan.



Sheikh Adi - 1



The Sheikh Adi-1 exploration well is currently at the 13.375 inch casing point at the bottom of the Cretaceous interval after side tracking around a section of the bottom hole assembly that had become stuck in the open hole. The forward plan is to set 13.375 inch casing and drill out into the top of the Jurassic age formations and the first of the primary exploration targets for this well.



Shaikan-2



The Shaikan-2 appraisal well (9 km east of Shaikan-1) is currently drilling 17.5 inch hole at approximately 1,210 metres. The forward plan is to drill to the bottom of the Cretaceous interval, set 13.375 inch casing and then drill into the first of the Jurassic age target intervals.



Extended Well Test



The Shaikan-1 discovery well and the Shaikan-3 well are both now tied into the extended well test facility and ready to produce from the Jurassic age Sargelu reservoir. To date, the Company has sold over 63,000 barrels of oil into the domestic Kurdistan market, which has yielded valuable commercial and marketing information. The Company has signed an initial quarterly sales contract for 2,500 tons (for Sargelu crude oil, one ton equals 6.7 barrels) of oil per week to be sold into the Kurdistan domestic market.



3D Seismic Program



The 3D seismic data acquisition program has been fully completed on both the Shaikan and the Sheikh Adi structures. Data processing and seismic interpretation will continue until at least June of this year.



Shaikan-4



The location for this well, the second deep appraisal well on the Shaikan structure (6 km west of Shaikan-1), has been completed and the Company has signed a letter of intent with AOS for their Discoverer 3 drilling rig. This 2000 hp rig will begin moving from Tunisia to Kurdistan in February and well spud is currently anticipated by the end of March. Shaikan-4 is targeted to drill the Jurassic and Triassic age formations and if warranted, into the top of the Permian.




Akri-Bijeel



Kalegran (100% subsidiary of MOL) is currently rigging up on the Bekhme-1. This well is designated as a Jurassic exploration well with a target depth of 2,900 metres (depending on well results). The well is expected to spud by mid March.



John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented "We will very shortly have two appraisal wells and two exploration wells underway in Kurdistan. We are very excited about the possibilities that this implies for our holdings in Kurdistan and we are looking forward to a very interesting and rewarding 2011."