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.

Good news ....and the stock drops....the market is just hopeless at the moment....best to just wait because things will turn around sooner or later.

From GKP's partner.

http://www.reuters.com/article/2011/05/24/mol-surgut-idUSTST00206520110524?feedType=RSS&feedName=hotStocksNews

good news today - even though already known - minute rise now reversing again as expected

what gkp needs is a huge dose of real bad news - this will probably send it north into orbit!! lol

From Evolution today per FT Alphaville:

"Last weeks analyst site visit to Gulf Keystones assets in Kurdistan
highlighted two major catalysts for the company. Firstly, the current
appraisal campaign on the Shaikan structure is aimed at taking the
current PMean estimate of 7.5bn bbls Oil in Place towards the upside
case of 10+ bn bbls Oil In Place. Secondly, the company is making good
progress on commencing exports at a rate of 5,000 bopd but with the
potential for this to rise to nearer 18,000 bopd by year end"

"The company appears to be making good progress towards commencing exports
into the main pipeline negotiating trucking contracts, supply agreements with
DNO and installing gas sweetening facilities at the Early Production Facilities
which will make the oil suitable for export. Initially, rates of 5,000 bopd
(equivalent to c25 trucks/day) are have been sanctioned however, the facilities
and existing Shaikan-1 and 3 wells are capable of attaining rates of nearer 18,000 bopd and this is the target for year end assuming KRG approval. Furthermore, DNOs announcement on 6th June that it had received payment from the KRG for its February/March exports is very good news and proves that the interim payment mechanism is up and running."

"We have raised our Core + Risked NAV valuation slightly to 230p (from 222p) to
incorporate the risked upside of Shaikan however, our TP of 200p is left
unchanged. The discount to Core + Risked NAV reflects the risks associated with
having unapproved PSCs and also the ongoing Excalibur legal dispute. At the
current market price of 158p we believe the share price is underpinned by the
discoveries at Shaikan, Bijeel and cash on the balance sheet, leaving the
exploration campaigns at Sheikh Adi, Bekhme and Ber Behar in for free."

And some projected figures taken from another bb.

GKP Export Production 5000bopd

Minus KRG 20% and TKI 5% = 3750bopd to GKP per day @ DNO price $44 per barrel
= $165,000 per day to GKP.

GKP Export Production 18,000bopd

Minus KRG 20% and TKI 5% = 13,500bopd to GKP per day @ DNO price $44 per barrel
= $594,000 per day $216,8100,000 per year.

GKP Export Production 18,000bopd

Minus KRG 20% and TKI 5% and 15% Back-in = 10,000bopd to GKP per day @ DNO price $44 per barrel = $475,200 per day $173,448,000 per year.


GKP Export Production 18,000bopd

Shaikan (GKP 51% fully diluted)= 9,180bopd to GKP per day @ DNO price $44 per barrel = $403,920 per day $147,430,800 per year

nice one cyril.,.

14 June 2011



Gulf Keystone Petroleum Ltd. (AIM: GKP)

("Gulf Keystone" or "the Company")



Kurdistan Operational Update

Commissioning Phase of Oil Export Operations





Further to the announcement of 23 May 2011, Gulf Keystone is pleased to announce that currently the Company is in the commissioning phase of oil export operations from its Extended Well Test (EWT) facility close to Shaikan-1 and Shaikan-3.



The commissioning phase, involving final preparations and customary checks and tests on all elements of the process, including loading and transportation logistics, as well as metering and receiving facilities, is underway in order to enable the Company to steadily ramp up export volumes to 5,000 barrels of oil per day (bopd) with an eight month target of over 10,000 bopd. To date just over 3,700 barrels of oil have been delivered to the storage tank facilities at the export pipeline injection point.



Prior to commencing the commissioning phase the storage tank at the EWT facility was emptied of approximately 21,000 barrels of oil, which have been sold into the domestic market in order to allow preparations for oil export to commence.



All volumes of oil are in addition to those previously reported in the Annual Results on 11 April 2011.



The Company will provide a further update on oil export operations once the commissioning phase is complete and stabilised export volumes have been injected into the Kirkuk-Ceyhan pipeline.



John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented:



"Gulf Keystone is making good progress toward commencing oil exports from our Shaikan facilities at the initial intended rate of 5,000 bopd following the current commissioning phase. We look forward to delivering stabilized export volumes of Shaikan crude for shipment via the Kirkuk-Ceyhan pipeline."

http://www.investegate.co.uk/Article.aspx?id=201106160700065191I

Starting to rise.....with all these wells on going, it's not surprising...perhaps good for 160p plus once again !.

A post from the respected Zen and comments from another top pi.(former mamagement)
------------------------------------------------------------------------------------------------------
Something to think about -

We might not see a specific price known for the Back in rights for Shaikan (if indeed the Koreans do get them) but the following may give an idea as to the relavance of Shaikan BIRs and who might build a pipeline if called upon to do so.

Extract from interview with Dr Seong-Hoon KIM, Vice President Korea National Oil Company (AFTER 5th JUNE 2009) and from the Kurdistan Oil and Gas Year Book 2009.

SH-K: "Fisrt of all we think there is great potential to acquire more blocks in the area.

Secondly the Kurdistan region has little pre-existing infrastructure. As a consequence , the posibility of an oil for development programme, where KNOC provide infrastructure in exchange for the oil supply from the region, is a winning combination for both sides.

After the Bazian deal, we spent another year to negotiate the oil for development programme and signed the second deal in November 2008, theerby becoming the largest investor in the Kurdistan region.

We are confident that once our success in the Kurdistan region is recognised by the Baghdad government, they will be willing to welcome Korean investments in the rest of the country".

Interviewer - "You are involved in Qush Tappa, Sangaw North and South, Bazian, and four Hawler blocks." (This equal the 5 blocks which were previosly made up of 8 smaller blocks). Please introduce your work programmes so far and walk us through the licences, their differenes and work programmes"

S-HK: Amongst the 5 blocks we are the operator on three of them. In respect of the remaining two, Norbest operates Hawler and Sterling Energy opearates Sangaw North.

I beleive that within two years we can drill all five blocks, making signifiacnt oil discoveries. Within 5 years we will start production. Projecting ourselves further we may have a huge production profile within 10 years.

Interviewer:" Does KNOC have ambitions to invest in the downstream and mid stream opportunties avalaible here?"

S-HK: I certainly beleive Kurdistan needs downstream projects. SOME PORTION OF THE $2.1B OF INFRASTRUCTURE PROGRAMMES MAY INCLUDE A STORAGE FACILITY PROJECT PROPER FOR US. ONCE AGAIN IF THE LOCAL AUTHORITIES WANT DOWNSTREAM PROJECTS THEN WE ARE WILLING TO INVEST IN SUCH.

We are ready to start building a power station with two 150 megawatt units and a power substation with a 400 kilo volt transmitter systenm as a initial project. The MOU was signed on the 5th June 2009 with the initial investment worth about $600m."
================================================

DNOs capacity building bonus for Tawke was $150m and no sign on fee for Tawke at the outset (As GKP at Shaikan $10m fee + capacity building bonus of $15m paid at start).

The Koreans (KNOC) paid a sign on fee of $10m for the Bazian block (+ $20m as a capacity building bonus).
Sangaw North cost $10m and $25m for the capacity building bonus.
Norbest paid a total of $25m and $175m capacity building bonus for all 4 Hawler blocks (now 1 major block known as Hawler).

Finally the Koreans (KNOC) and that $2.1b support. (Page 136).
They paid nothing TO THE KRG for the sign on fee for their other block interests.
Capacity Building Support - nothing.
***"Conditional Capacity Building to be paid" = $2.1b***.
"A down payment of $200m is already released to a segreagated KRG account. The remaining amount of $1.9b is not payable in cash. INSTEAD INFRASTRUCTURE PROJECTS SHALL BE IMPLEMENTED BY KNOC AS REQUIRED BY THE KRG TO THE TOTAL AGREED VALUE OF THE CAPACITY BUILDING AMOUNT. THE FIRST TWO PROJECTS (POWER PLANTS) TO THE VALUE OF $600M HAVE ALREADY STARTED, THESE TWO PROJECTS WILL ALSO UTILISE THE DOWN PAYMENT OF $200M" (Therefore only $600m of the $2.1b amount has been used - leaving $1.5b still to come from the Koreans - but they must have oil and at 2011 Bazian didn't find much oil only gas as so far has Sangaw North and Norbest to my knowledge on the Hawler blocks havent drilled yet) "OTHER PROJECTS ARE UNDER EVALUATION."

Now before anyone wonders what the back in rights for Shaikan may be worth - we may never know (if they are awarded as rumoured to the Koreans).

Even after the Koreans had the 8 original blocks shares (now 5 larger blocks) they then said
- "Fisrt of all we think there is great potential to acquire more blocks in the area.

They also have agreeed to give the KRG $2.1b in exchange for oil - but the blocks they have, have not proven up much oil to date - so they have to get oil in exchange for the KRG getting that $2.1b.

There's still $1.5b to come from the Koreans agreement of providing $2.1b towards KRG infrastructure of the KRGs choosing. From the start it was 'CONDITIONAL' Do not rule out the Koreans funding a massive pipeline (look back where they spoke of storage facilities and downstream).

Finally in return for some $2.1b from KNOC - well you could see the 15% Shaikan Back in rights being tied into this 2008/9 agreement ie to quote KNOCs Vice President " where KNOC provide infrastructure in exchange for the oil supply from the region, is a winning combination for both sides."

------------------------------------------------------------------------------------------------------

GRH: let us consider Zengas' excellent post above (many thanks Zengas) in the light of our own assessment of the situation on another KNOC investment that we discussed yesterday.

If I were KNOC I'd be inclined to say to Todd something like "look. your company cannot afford to develop its full acreage on current indications of its potential, only a state-owned oil company could ever do that. if you try to do it you will end up with colossal dilution, decades of work, and a managerial nightmare. you're a young man, you can go again on some exploration acreage, you have a lot of fans, they will back you. why not sell it to us?"

but imho DYOR etc as alw

Thanks for the posts niceonecyril...always interesting...on the sp front : nice rise...sharp vertical upwards surge coming perhaps ?....

Might even see a bid here one day....ideal candidate for a major I would think with big middle east ambitions !...

Really starting to steam away now.....tut tuut....chug, chug chug.....tuftuftuftuf...well it looks like elvis has left the station....

Just a rumour but apparently a rumour about a takeover bid has been started by a certain required field on money am.....250 pence buyout.....

psss...(worth a try anyway)....

GKP latest tenders.

4th July 2011
NOTIFICATION OF TENDER AND INVITATION TO BID
TENDER No: GKPI/SH/2011/045
Provision of Drill Stem Testing Services for Shaikan Wells
Gulf Keystone Petroleum International Ltd (GKPI) is pleased to invite interested Companies (Bidders) to submit a
Bid Proposal for our TENDER NO: GKPI/SH/2011/045.
Please submit your Bid Proposal (paper & electronic copies) in accordance with the ITB documents no later than
12:00hrs GMT, Monday 25th July 2011. NO extension will be granted.

4th July 2011
NOTIFICATION OF TENDER AND INVITATION TO BID
TENDER No: GKPI/SH/2011/046
Provision of Surface Well Testing Services for Shaikan Wells
Gulf Keystone Petroleum International Ltd (GKPI) is pleased to invite interested Companies (Bidders) to submit a
Bid Proposal for our TENDER NO: GKPI/SH/2011/046.
Please submit your Bid Proposal (paper & electronic copies) in accordance with the ITB documents no later than
12:00hrs GMT, Monday 25th July 2011. NO extension will be granted.

Page 4 snippet:

Hear from Gulf Keystone Petroleum on their progress to date
and future business plans for Kurdistan

Improvements in law enforcement for sustaining interest and
investments into the energy sector of Kurdistan.
n Legal and judicial reforms which will benefit the
investor community

On: Sun 07/17/2011

Baghdad (news) .. approved the Vice Chairman of the Commission on oil and energy parliamentary member of the House of Representatives / State of Law / Sheikh Dhari Ali Fayad said the oil and gas and national oil company will settle all the problems associated with this sector.

Fayad said in a statement to the Agency (news) that the end of the obstacles and dilemmas in the Iraqi oil sector legislation will end the oil and gas and national oil company, stressing the critical importance in the coordination of work and advancement of this sector to the ranks of countries in the world.

He was the former Iraqi Oil Minister Ibrahim Bahr al-Ulum called the House of Representatives to the amendments to the law of oil and gas before reading it within the Council in line with the changes in the oil sector in the country Kjlat licenses.

Uloum said in a press statement, the oil and gas law, which will hopefully be discussed by the House of Representatives in the coming period requires careful review to ensure amendments are consistent with the changes it made to the fact the Iraqi oil during the past four years.

The Sea of ​​science that can not pass a law of oil and gas, the current formula, which started two years ago did not take into account the changes and developments which may occur to the fact the oil, indicating that the law will organize the production process and the mechanism of oil exports will strengthen the
relationship between Baghdad and Erbil.

The House of Representatives had previously failed to pass a law of oil and gas because of the tyranny of the political differences between Baghdad and Erbil on some of its paragraphs.

The oil contracts signed by the Kurdistan Regional Government with foreign companies of the most outstanding issues between Baghdad and Erbil, in the time that says the Iraqi Oil Ministry that the contracts of the region are illegal because they do not have the right led to the conclusion, emphasizes the territorial Government that the Constitution conferred the right to conclude contracts.

And held two rounds of Iraq last year licenses to invest in oil fields resulted in the victory of several international companies of different nationalities to develop ten fields in different regions, after Iraq held in October, the third oil licensing round.

Iraq seeks to access the oil produced within the next six years between 10 and 12 million barrels per day, in order to increase its exports of oil daily after obtaining approval from the worlds oil (OPEC).

http://currencynewshound.wordpress.com/2011/07/17/ali-fayad-the-oil-and-the-national-company-will-settle-all-disputes

down 30%.

takes the lead ...

That is what happens when there is NO support

and then UP again