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.

Of interest from the 3i's board.

MrA has posted on iii now too



Hello all,

I spoke with Baillie Gifford on Wednesday at their Edinburgh H.Q. Bailey Gifford currently hold a total of 28.5 MM GKP shares, they topped up recently with 15 MM around the same time that M&G topped up too. I have attempted to speak to Baillie G previously on a number of occaisions but they are brutally abrupt and refuse to discuss anything when the GKP words crop up - even partially related topics are not entertained. I got slightly luckier this week speaking to Stuart Dunbar there, the only information I gleamed however from Stuart is that Baillie Gifford are holding GKP on behalf of their Client (not clients plural) just...their Client he added.

Hmmm, sometimes a low sp is representative value to an acquiring purchaser and I wonder if this could be history repeating itself again when around 2 years ago Baillie Gifford undertook stake building in Dana Petroleum prior to KNOC's Takeover. During 2009 & 2010 Baillie Gifford bought heavilly into Dana Petroleum exceeding the holding disclosure threshold level, they continued to buy and add Dana's shares to their portfolio up untill February 2010 even when Dana's share price touched 11 per share.

Baillie G continued to add Dana whils't many other's steered away at that time and questioned both Dana's growth potential AND the improbability of a potential company Takeover.

Please note the doubter's comments below:

November 17th 2009 - FT.Com: ....."Traders have questioned the likelihood of a buyer emerging for Dana, given its North Sea assets are unlikely to appeal to a sovereign buyer and its African exploration prospects would be a poor match for a utility".

Less than 10 months later - this was announced:
September 2010: Dana Petroleum finally agree to an offer of 1.8bn (18 per share) from KNOC, for their 223 million barrels of oil reserves. This represented a 59% Premium to it's pre bid value.

KNOC who at the time held over a 30% shareholding in Dana - they finally persuaded 64% of Dana's shareholders to opt for the certainty of cash in the hand rather than the Management's promise of growth in the future. They really didnt have much choice after major shareholder's Schroders and BlackRock sold their holdings to KNOC.

The T/O price was eventually agreed over a 4 month period - with Baillie Gifford actively and vocally aiding in the final bid-battle target value of Dana.

As far as GKP and II's are concerned we have M&G, Baillie Gifford, and Capita who have all increased their GKP share holdings of late.

We have witnessed the M&G and the Kuok holdings update, and now that Baillie Gifford have breached the 3% holdings threshold level coupled with the amended bye-laws it would be good to see GKP issue a few new and up-to-speed disclosure holdings RNS's.
In all the excitement of Sh4 maybe GKP have forgotten to inform us.

Maybe Baillie G or to be more specific (their 28.5 MM Client) have found a loophole and have GKP split within 2 totally seperate divisions / holdings thus coming in under the radar and negating the need for notification. .....Either way from the many resulting phonecalls - they are certainly a protective and tight lipped lot !


Anyways back on earth or Kurdistan to be more precise:
On the Discovery side, .....oil shows on Ber Bahr hopefully due anytime soon. Fire up the news quattro Tony H and team, we'll gladly grab on to your coattails for the ride.

TD iminent if not already on Sh4.

OIP figs for Bekhme assisting our working interest sale there - come on MOL 12.8% of a lot is STILL A LOT !

Lastly, and hence the heading North x2 - the spudding of Sh5 earlier this week is into new and defining territory. As well as being a colossal step out Sh5 is situated approx 16 km north / north east of SH-1.

Back in June an alert and receptive analyst on the Kurdistan field-trip jollies picked up on a important and pertinent factor highlighting the "more pronounced extent" to both Shaikan & Sheikh Adi on each of the block's Northern formations.
The northern aspect of each anticline is more pronounced than it's current drills - which so far have only targetted the southern aspect's on each block's anticline. This indicates the carbonate would have been submitted to greater stress during its formation - with the high likelihood of increased levels of natural fracturing, and by implication yielding a higher Recovery Factor / higher oil-flow rates.


Good luck all,

MrAverage1

I was half expecting news this am,so maybe sometime this week?

http://www.proactiveinvestors.co.uk/companies/news/35208/citi-runs-the-rule-over-kurdistan-the-last-great-frontier-for-oil-explorers-35208.html

GKP shares look good value to me.

An e-petition that has been raised by private investor champion David O'Hara to try and get AIM investments eligible for ISAs. If they get enough votes, the government is forced to review the situation.

I urge everyone to take 2 seconds to add your name to this government petition.

http://epetitions.direct.gov.uk/petitions/16111

.

nonsense; the gov't will not be forced to do anything of the sort

A nice big OIP upgrade for Shaikan :) !!

http://www.investegate.co.uk/Article.aspx?id=201111080700316560R

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Brillient and here's a brokers note.

ulf Keystone Petroleum unveils second significant resource upgrade of the year
7:25 am by Ian Lyall
http://www.proactiveinvestors.co.uk/companies/news/35293/gulf-keystone-petroleum-unveils-second-significant-resource-upgrade-of-the-year-35293.html


Gulf Keystone Petroleum (LON:GKP) this morning unveiled a significant upgrade to the oil in place volumes for the Shaikan field in the Kurdistan region of Northern Iraq.
An independent review by Dynamic Global Advisors estimates that Shaikan contains 8 billion barrels of crude calculated on P90 basis meaning the oil has a 90 per cent certainty of being produced. The figure rises from 4.9 billion barrels previously.
Following the analysis carried out by Houston-based DGA the P10 value increases to 13.4 billion barrels and mean value to 10.5 billion barrels.
This is the second very significant upgrade to the Shaikan resource estimate this year and the third since 2009.
It is based on preliminary data acquired from Shaikan-4 and 3D seismic taken from Shaikan and Sheikh Adi blocks. DGA also included the new Triassic discovery made with the Shaikan-2 appraisal well.
Chief operating officer John Gerstenlauer said: Once again, the companys management and board of directors are delighted to validate our world-class discovery at Shaikan in the Kurdistan Region of Iraq.
This third successive upgrade of the Shaikan gross oil-in-place range by Dynamic Global Advisors is a new step towards completing our understanding of this exceptional asset.
The process of assessing Shaikan started on 6 August 2009, when we announced our first significant discovery in Kurdistan.
This assessment is far from being concluded as we have just spudded Shaikan-5 and prepare to drill Shaikan-6 in early 2012.
These additional appraisal wells will provide us with valuable information about the flanks of the massive Shaikan structure, while the Shaikan-7 well will target the Permian, the deepest undrilled horizon of the structure. The Shaikan appraisal programme is being completed in parallel with the ongoing work on the Shaikan field development plan.

=================================================
Oil & Gas Corporate News

Gulf Keystone PLC (BUY, 275p) (GKP LN,133.25p, ▲ 0.76%) today announced a major upgrade of the gross oil-in-place volumes for the Shaikan discovery in the Kurdistan Region of Iraq. The revised gross oil-in-place volumes for the Shaikan discovery, as calculated by Dynamic Global Advisors (DGA), are a P90 value of 8 billion barrels to a P10 value of 13.4 billion barrels of oil-in-place with a mean value of 10.5 billion barrels. This is the second very significant upgrade of the Shaikan resources estimates in 2011 and it revises the previously announced range of 4.9 to 10.8 billion barrels of gross oil-in-place with a mean value of 7.5 billion barrels. This upgrade is based on the data acquired since the last resource evaluation of the Shaikan discovery by DGA issued in April 2011 and is a third successive upward revision by DGA since the Shaikan discovery was announced in August 2009. DGA's latest estimates are an evidence of the progressive evolution of the understanding of the Shaikan field and of the increased certainty in the continuously improving resource estimates. DGA's conclusions are based on the new data acquired as a result of preliminary results from the Shaikan-4 appraisal well, results of the processing and interpretation of the 3D seismic data acquired, a new Triassic discovery made with the Shaikan-2 appraisal well in the Kurre Chine C zone, and an extended well test production from Shaikan-1 and Shaikan-3. Gulf Keystone is the Operator of the Shaikan block with a working interest of 75 per cent and is partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc.) and Texas Keystone Inc., which have working interests of 20 per cent and 5 per cent respectively.
http://www.stockopedia.co.uk/content/fox-davies-capital-update-featuring-specialist-energy-eastern-platinum-hambledon-mining-cairn-energy-petroceltic-oracle-coalfields-aureus-mining-61684/

"Shaikan is the companys most advanced prospect and has the potential to be the worlds next super-giant oil find "
===============================================================================
Gulf Keystone Petroleum shares on the march following resource upgrade
11:52 am by Ian LyallShaikan is the companys most advanced prospect and has the potential to be the worlds next super-giant oil find. The company currently holds a 75 per cent interest.

Shares in Gulf Keystone Petroleum (LON:GKP) were up as much as 15 per cent in early trade after the explorer unveiled a significant upgrade to the oil in place volumes for the Shaikan block in Northern Iraq.

An independent review by Dynamic Global Advisors estimates the Kurdistan field contains 8 billion barrels of crude calculated on a P90 basis meaning the oil has a 90 per cent certainty of being produced. The figure rises from 4.9 billion barrels previously.

Following the analysis carried out by Houston-based DGA the P10 value increases to 13.4 billion barrels and mean value to 10.5 billion barrels.

This is the second very significant upgrade to the Shaikan resource estimate this year and the third since 2009.

It is based on preliminary data acquired from Shaikan-4 and 3D seismic taken from the Shaikan and Sheikh Adi blocks. DGA also included the new Triassic discovery made with the Shaikan-2 appraisal well.

Chief operating officer John Gerstenlauer said: Once again, the companys management and board of directors are delighted to validate our world-class discovery at Shaikan in the Kurdistan region of Iraq.

This third successive upgrade of the Shaikan gross oil-in-place range by Dynamic Global Advisors is a new step towards completing our understanding of this exceptional asset.

The process of assessing Shaikan started on 6 August 2009, when we announced our first significant discovery in Kurdistan.

This assessment is far from being concluded as we have just spudded Shaikan-5 and prepare to drill Shaikan-6 in early 2012.

These additional appraisal wells will provide us with valuable information about the flanks of the massive Shaikan structure, while the Shaikan-7 well will target the Permian, the deepest undrilled horizon of the structure. The Shaikan appraisal programme is being completed in parallel with the ongoing work on the Shaikan field development plan.

After an initial spike to 153 pence, the stock settled at 141.60 pence by 11.45 am to record a gain of 8.35 pence.

City broker Evolution tweaked its valuation up by 10 pence a share to 210 pence following todays update.

However it has also taken a more conservative view on potential recoveries at Shaikan.

Analyst Richard Griffith added: We would expect further upgrades in 2012 with de-risking events such as FDP approval, export route clarification and development funding.

Shaikan is the companys most advanced prospect and has the potential to be the worlds next super-giant oil find. The company currently holds a 75 per cent interest.

According to analysts the nearby Ber Bahr field could be even bigger. Here the first exploration well was spudded last month.

It is operated by Turkish outfit Genel Energy, which has a 40 per cent interest, as has Gulf Keystone. The remainder is owned by the Kurdistan Regional Government.

At the same time Bekhme-1, the second exploration well on the Akri-Bijeel block, drilled 20 kilometres to the north-east from the Bijell 1 discovery well, is currently testing in the Triassic.

Gulf Keystone has a 20 percent working interest in the Akri-Bijeel, which is operated by of MOL Group, which holds an 80 percent working interest in the block.

The company recently announced plans to sell its interest in this field to concentrate on other prospects.

Gulf Keystone has made remarkable progress in the last 18 months with a high impact drilling programme that wouldnt look out of place at one of the larger independents.

A recent US$200 million share placing underlined the shareholder support the company enjoys and has allowed the explorer to move full throttle into the next phase of development.

In a research note published last week, American investment bank Citi said Kurdistan is set for a major period of news flow as independent exploration companies embark on ambitious drilling campaigns in the semi-autonomous region.

Based on data from the US Geological Society, Kurdistan could hold over 50 billion barrels of oil which means it is comparable in scale to Libya.

Counterbalancing this excitement is uncertainty over the production sharing contracts being issued by Kurdistan, which are still being disputed by the authorities in Baghdad.

These concerns are further exacerbated by the news that some oil companies arent receiving full payment for their oil exports.

Both issues are unlikely to be resolved until an Iraqi oil and gas law is ratified, in our view, Citi said in the recent note penned by Michael Alsford and Mukhtar Garadagh.
http://www.proactiveinvestors.co.uk/companies/news/35319/

DOW JONES NEWSWIRES

LONDON (Dow Jones)--Gulf Keystone Petroleum Ltd. (GKP.LN) expects to start drilling production wells at its Shaikan oil discovery in the Kurdistan region of Iraq in late 2012 or early 2013, Chief Operating Officer John Gerstenlauer told Dow Jones Newswires Tuesday.

The company is still appraising the oil field and will drill two more wells to fully understand the geological structures and oil reservoirs before finalizing and submitting its Field Development Plan to Iraq's Ministry of Oil.

If all goes to plan, Gerstenlauer expects to submit the plan in mid-2012 and hopes it will be approved by the end of the year, before moving on to the development stage.

Gulf Keystone is already working on the plan, and although Gerstenlauer said it is still early days, he said the project will likely require 200 wells over its 25-year life--100 to begin with and 100 more by the end of its life.

"You're looking at somewhere in the order of $7 billion in gross development costs, of which $4.5 billion to $5 billion is our share," he added.

The idea is to connect the Shaikan oil field to the Kirkuk-Ceyhan export pipeline, which runs between Iraq and Turkey and is located some 120 kilometers away. Gerstenlauer said the company could build the connection itself, but another possibility would be for Gulf Keystone to team up with Chinese national oil company Sinopec and Genel Energy International, an independent Turkish oil company, as they will be building a pipeline following a similar route.

Gerstenlauer said Gulf Keystone has more than $300 million in the bank but will need more to fund all of its plans, and hopes to get the funds by selling its interest in the Akri-Bijeel license, also in Kurdistan.

He said the company is waiting for its partner and the operator of the license, Hungarian oil and gas firm MOL Nyrt. (MOL.BU), to finish testing its second exploration well, Bekhme-1, and release its data before starting the auction process.

"Hopefully that [interest] will also generate several hundred million dollars, then we should be quite well funded," he said.

Shares at 1340 GMT were up 10 pence, or 7.5%, at 143.3 pence in a slightly higher Alternative Investment Market--up 1%.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com

Gerstenlauer said Gulf Keystone has more than $300 million in the bank but will need more to fund all of its plans, and hopes to get the funds by selling its interest in the Akri-Bijeel license, also in Kurdistan.


eXCELLENT veiwing

http://blueprint.tv/uncategorized/gulf-keystone-petroleum-2

Exxon moves into Kurdistan.........


http://www.ft.com/cms/s/0/4e44f860-0bda-11e1-9861-00144feabdc0.html#ixzz1dLDC8jSs


.

http://www.cityam.com/news-and-analysis/what-the-other-papers-say-morning-602


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Weak Good
Twilight News / president of the Kurdistan Regional Government, Barham Salih, Wednesday, the Erbil to reach an agreement with Baghdad on a draft law of oil and gas, will hopefully be submitted to the Iraqi Council of Representatives before the end of the year.
Saleh said in a statement to Radio NPR U.S. that "the agreement recently reached between us and the Federal Prime Minister Nuri al-Maliki on the draft law of oil and gas," he said, adding that "the project will be presented to the Iraqi Council of Representatives before the end of this year to vote on it."

He did not say for the content of the new draft, but he stressed that "the Iraqi constitution allows for the Kurdistan Region to take advantage of the fields and oil wells recently discovered in the region," adding that "the province and the basis of this constitutional right, began the development of economic infrastructure of the oil."

And Saleh said "the fact that the government of the province are now producing and exporting oil to the outside through the Iraqi pipelines," noting that "the proceeds of oil exported from fields in the region go to the central treasury of Iraq."

The oil and gas law is among the many outstanding issues between Erbil and Baghdad, which take place around the negotiations and dialogues length between the two sides to reach a formula Tredehma, and the exchange of the two sides to send delegations to negotiate, after both both the charges for the other to block to reach a solution.

Mm Al

Rocketing up ...any news anyone .....?...IC tip perhaps or takeover rumour...?...

Maybe exxon?

ExxonMobil has become the first of the supermajor oil companies to venture into Kurdistan, in a controversial move that will be seen as a huge vote of confidence in the semi-autonomous region of Iraq but could spark a backlash in Baghdad.

13% increase !....blimey...

165p....holy.....

not surprising really - contiuous news flow expected peeps taking positions for monday - would not want to be out over the weekend!!!! yeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaa

exxon interest is good news

additionally it seems that the O&G law is no longer a deterrent to majors entering Kurdistan - nice :-))))))))))))))))))))