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.

Make of this what you like?



From lse board. China arriving?



Midnight here now in Shanghai
Today 16:08


I come to UK onThusday 1st Dec.

Watch for Sinapec in Erbil Friday 2nd Dec .

Hold for weekend....don't short on Friday.......been a long time coming but now too much pressure for M and S.

More news underground here than in London.

I am only an amateur PI ( you all know that already and I don't post often) . Shanghai is an international Buzz shop!!!

Another message from Shanghai that I get from a senior International banker friend here is that you all probably know is to change all your Euro investments into Pounds or RMB ASAP. (not US$).

Good Luck All and Hold Tight for now.

loadsa shit - just what's needed for the garden, though i use my own!

You can take that two ways cynic lol.

1. Loadsa shit makes plants grow well in the garden.

2. What, you use your own? Do explain? lol I guess you have some animals.

http://www.aknews.com/en/aknews/2/274875/

Kurdish Representative: Oil Ministry's actions against Exxon illegal
27/11/2011 14:27
BAGHDAD, Nov. 27 (AKnews) - Representative Bayazid Hassan, a Kurdish member of the Council's Oil and Energy Committee, claimed that the federal Oil Ministry is not allowed to put Exxon Mobil on a blacklist for its contracts with the Kurdistan Regional Government.

The announcements of the Oil Ministry's Contracts and Licenses Department were political threats and not legal measures, Hassan said.

"Companies are put on blacklists for violating the law and the terms of the contract. When a company makes a deal with the Kurdistan Region -- which is a part of Iraq -- it can not be against the law," Hassan said.

Exxon Mobil, the Texas-based hydrocarbon corporation, signed an exploration agreement with the KRG to start drilling in six fields. This has dropped the supermajor right in the middle of a battle between the KRG and the federal government in Baghdad.

Deputy Prime Minister for Energy Hussein al-Shahristani gave Exxon Mobil the choice either to work in the West Qurna field or the fields of Kurdistan, thus threatening to cancel existing contracts with the U.S. supermajor.

The Iraqi Oil Ministry said Saturday that it will prevent Exxon Mobil from participating in the fourth oil licensing round if Exxon does not cancel its contracts with the KRG. Abdul Mahdi al-Amidi, Director General of the Contracts and Licenses Department, said that Exxon Mobil violated the working laws of the Oil Ministry when it contracted with KRG.

"The Ministry is waiting for an the official response from the company before it will be completely prevented from working in Iraqi oil fields," Amidi said.

In the past Baghdad has prevented companies operating in the Kurdistan Region from participating in licensing rounds to develop Iraqi oil fields. Other supergiant oil companies working in southern Iraq, like BP and Royal Dutch Shell, have held off from moving into Kurdistan Region for fear of antagonizing the Iraqi government.

By Wisam Mohammed

http://www.bbc.co.uk/news/mobile/business-15911337

http://link.ft.com/r/P75VYY/EXJ5W4/4M4S/GDI5A1/8ZY7CD/4O/h?a1=2011&a2=11&a3=28

iii--cheers bbbs

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today 07:45



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Re: What will they think in Hong Kong? View parent message



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I'm surprised that most seem to have over-looked the thought processes behind GKP's selection of their second new NED. The RNS of 25th November 2011, 'Appointment of Non-Executive Director', contained just three paragraphs of pertinent data as follows:

=============

"Mark Anthony Crump Hanson, 58, who is a qualified barrister and solicitor, was formerly Chief Executive Officer of Global Banking Corporation in Bahrain from 2006 to 2008.

Mark brings with him extensive regulatory and corporate governance experience having served as a director on several boards and having advised a number of clients in the Middle and Far East during his 34 year career. His experience includes the listing in Hong Kong and New York of Shanghai Petrochemical Company, the first mainland upstream Chinese oil company to list outside of the People's Republic of China, and oil and gas projects in Saudi Arabia.

Previous roles include Chief Executive of Bain Securities Limited, Managing Director of Peregrine Capital Limited, Deputy CEO at the Hong Kong Stock Exchange and COO of Crosby Financial Holdings. In addition, Mark was responsible for the establishment of ABN AMRO's investment banking and equity capital market operations in Saudi Arabia."

=============

Each paragraph paints a distinctly 'Eastern' flavour. Let's cut to the chase - Hong Kong is THE place where China does business with the rest of the world:


- Paragraph 1: "Mark Anthony Crump Hanson, 58, who is a qualified barrister and solicitor ..."

Ok then, how well is he qualified and WHERE is he qualified? The answer is "He is a qualified barrister and solicitor in four jurisdictions (New Zealand, the United Kingdom, HONG KONG and Australia)":
http://people.forbes.com/profile/mark-hanson/138470


- Paragraph 2: "His experience includes the listing in Hong Kong and New York of Shanghai Petrochemical Company, the first mainland upstream Chinese oil company to list outside of the People's Republic of China".

FFS people, this is MASSIVE. Do you not realise that Shanghai Petrochemical Company is one and the same as SINOPEC:
http://english.sinopec.com/about_sinopec/subsidiaries/subsidiaries_joint_ventures/20080326/3079.shtml

Mark Hanson was THE man that brought China's first NOC to the rest of the world. He MUST know SINOPEC inside out - he only listed them in both Hong Kong and New York!


- Paragraph 3: "Previous roles include ... Deputy CEO at the Hong Kong Stock Exchange"

Lovely understatement - was that you Ewen? A more complete description of his role in Hong Kong would be "He was later appointed Deputy Chief Executive and Head of Listings at the Hong Kong Stock Exchange, where he was instrumental in developing the Exchange's post 1997 strategy, negotiating with the Chinese authorities prior to Hong Kong's return to China. The Governor of Hong Kong recognized Mark's contribution by appointing him a member of the company Law Reform Commission":
http://www.ftconferences.com/commercialproperty/speakerdetails/12/?PHPSESSID=78d20aabc8b55b07aff01e57e3759b66

Mark Hanson was clearly not one of the hangers-on, he is one of THE main men who knows how China - and more specifically SINOPEC - does business with the rest of the world.

So why did GKP select Mark Hanson as one of the new NED's? Some thoughts:

Whatever happens, GKP (or future owner) will HAVE to work with SINOPEC with regard to pipelines. From what we have heard from Vallares and Afren, SINOPEC will be involved in building the KICE pipeline from Taq Taq to Fishkabur at the Turkish border. The KICE pipeline will run just south of Shaikan. GKP's own Shaikan pipeline will also run up to Fishkabur. It is inconceivable that the KRG will not mandate coordination and simultaneous laying of the two pipelines over the section from Shaikan to Fishkabur. IMO.

If you refer back to my previous post on this thread, you will know that my 'rumour' was referencing our 'friend' Mr Kuok. You can be SURE that Mr Kuok will not be able to exert influence on GKP if he really does only have 3% of the stock. IMO, Mr Kuok is not yet our 'friend', as we have all seen that the picture is not pretty when someone with enormous wealth and influence wants to accumulate. I just hope he is 'nearly there'. And the appointment of Mark Hanson (a man after Mr Kuok's own heart IMO) would suggest that the 'influence' is definitely 'already there'.

Mark Hanson is clearly an expert on 'Listings'. A FTSE listing may not be the only option. Please guys, let's not start the ISA thread over again concerning shares listed in Hong Kong LOL.

Perhaps one offer on the table concerns cash + shares, the shares in question being listed on the Hong Kong Exchange? But don't give up on Exxon/Chevron just yet, the 'cash' part could be coming from them. I'm in the GRH1 camp here - GKP's resources are so masssive that a 'global sharing' between US and China may well be in the best interests of everyone. Yes, even you Shari.

We live in exciting times.

GLA,

BBBS

ANALYSIS: Kurdistan's Shaikan field emerges as heavyoil giant
28 November 2011
Platts Commodity News

Dubai (Platts)--28Nov2011/630 am EST/1130 GMT

Iraqi Kurdistan's Shaikan field is shaping up as one the largest Middle East oil discoveries in decades.

But while the field is almost certainly commercially viable, it mostly contains heavy crude that is technically challenging to extract. Shaikan's main Jurassic reservoirs contain crude with molasses-like consistency and 4.5-5% sulfur by weight.

"We have a phased development plan and need to get to plateau in three to five years," Adnan Samarrai, Gulf Keystone's Kurdistan regional manager, said in an interview. "We need more than 40 wells to reach plateau, and there is some idea we could go up to 400."

"To start with we need $2 billion for additional development," he added. "By the end of next year everything is on the table. We come out with a development plan and declare commerciality."

Gulf Keystone CEO Todd Kozel told an oil conference this month in the regional capital Erbil that full field development would cost $7 billion.

He compared Shaikan, with its estimated 10.5 billion barrels of oil in place, to northern Iraq's supergiant Kirkuk oil field, discovered in 1927 and still producing.

A 2010 independent assessment of Shaikan by Houston-based Dynamic Global Advisors (DGA) showed basic similarities between the fields.

In this region of long, parallel ridges near the Iranian border, foothills and mountains are formed from petrified marine sediments, compressed and forced upwards where the Arabian tectonic plate grinds into the Anatolian and Iranian sub-plates.

Layers of limestone, dolomite and shale that once lay under the ancient Tethys Sea still rise in Kurdistan at a rate of several centimeters per year.

According to Samarrai, a veteran Iraqi petroleum geologist, oil migrating from the pressurized shales beneath Iraq's desert has accumulated in porous carbonate rocks and seeps to the surface where the corrugated rock formations have fractured.

The elongated domes of Kirkuk and Shaikan each contain multiple reservoirs.

DGA's initial assessment of Shaikan, a copy of which was recently obtained by Platts, states that Gulf Keystone's Shaikan 1-B well encountered ten distinct oil and gas reservoirs within a net pay interval of nearly 240 meters.

"The Zagros fold-belt borders the northern and northwestern Arabian plate. Conditions suitable for hydrocarbon accumulation occurred on the Arabian plate to the southwest of the Zagros. Subsequent deformation along this plate margin modified but did not reduce the occurrence of hydrocarbons along the deformed Zagros fold-belt," DGA said of the prospect.

It subsequently upgraded estimates of Shaikan's size and oil resources, more than doubling the latter in a 2011 assessment taking into account more detailed seismic data and new well-test results.

But resources are not proven reserves, which represent only oil that may be extracted economically at a given time. For heavy crude, that is typically a low percentage of oil in place.

Gulf Keystone has not completed its appraisal program. But even a low recovery factor would give Shaikan billions of barrels of reserves.

Samarrai estimates that 20% of the heavy crude could be extracted using primary recovery techniques. That could "easily" be boosted to 30% by reinjecting corrosive byproduct hydrogen sulphide gas which is more efficient than other gases at pushing sluggish crude out of reservoirs.

Kurdistan's Natural Resources Minister, Ashti Hawrami, in November said large-scale gas flaring would not be tolerated in the region, so Gulf Keystone will need to develop gas-processing facilities early in Shaikan's development.

That means the Bermuda-registered venture may need to attract a partner experienced in handling dangerous hydrogen sulphide.

France's Total has proprietary gas-injection technology well-suited to exploiting Shai ...Read Full Message
More View thread 3
Respond

Spencer Freeman tweeted this...
Exxon have ambitious, exciting developed plans for Shaikan having secured KRG's BIRs for the major oil field.


but, lets not forget a couple of weeks ago, The Independent specifically reported...

It seems likely that Exxon has taken a 20 per cent stake in Shaikan. The Kurdistan government had an option of taking this stake once the field was proven to be commercially viable, and it is this that has been sold on rather than a portion of Gulf Keystone's undiluted 75 per cent holding.

http://www.independent.co.uk/news/business/news/chevron-to-join-slick-of-oil-supermajors-in-kurdistan-6261405.html


As the BIR is 15%(and is a portion of Gulf Keystone's undiluted 75 per cent holding), there seems to be some confusion (if thats possible with rumours!)

But it could be that the total available slice is KRG's 20% (free carry) plus the 15% BIR, giving Exxon (or Chevron or Knoc) a nice chunk and we still have our 51% W.I.

http://www.bloomberg.com/video/81756938/

Realistic point of view.


After reading lsn's copy of Gramachos post on iii...
Re : oilmans discussion with john stafford and ewen.
We are clearly some way off a realistic bid being tabled by any major as we are quite a way off knowing the recovery factor of shaikan,nobody,especially a listed co are going to risk a multi billion dollar bid with as much as 40% swing on the known RF.
Gkp are obviously spemding a small fortune proving this up but its not going to happen in the next month or two by the sounds of it.
Hope im wrong of course,95% in GKP personally !!!

I think your right cyril, am not getting too excited just yet, would be happy to see 2+ for xmas.,.

Fox-Davies Capital Coverage - Oil & Gas

Fox-Davies corporate client & coverage universe as of 30 November 2011:

Company Ticker Ticker Recommendation Recommendation Date Date Target

Aminex AEX LN Equity UNDER REVIEW 16.11.11 0.13 0.03
Borders & Southern Petroleum BOR LN Equity BUY 26.11.10 1.50 0.61
Bowleven BLVN LN Equity UNDER REVIEW 1.11.11 5.50 0.73
Circle Oil COP LN Equity BUY 25.10.11 0.90 0.22
Desire Petroleum DES LN Equity UNDER REVIEW 29.03.11 0.40 0.23
Enegi Oil ENEG LN Equity UNDER REVIEW 18.11.10 0.25 0.09
Falklands Oil & Gas FOGL LN Equity BUY 01.04.11 2.50 0.50

Gulf Keystone GKP LN Equity BUY 21.11.11 3.00 1.63

Gulfsands Petroleum GPX LN Equity UNDER REVIEW 07.01.11 3.50 2.01
Hardy Oil & Gas HDY LN Equity BUY 25.08.11 2.50 1.45
Heritage Oil HOIL LN Equity HOLD 30.03.11 4.20 1.78
Matra Petroleum MTA LN Equity UNDER REVIEW 26.05.10 0.07 0.01
Max Petroleum MXP LN Equity BUY 02.03.11 0.50 0.13
Petrokamchatka PKP CN Equity UNDER REVIEW 14.01.10 C$0.15 C$0.01
Po Valley PVE AU Equity BUY 29.04.10 A$1.50 A$0.165
Range Resources RRL LN Equity BUY 18.11.11 0.27 0.09
Rockhopper Exploration RKH LN Equity BUY 10.11.11 6.00 2.38
San Leon Energy SLE LN Equity BUY 17.11.11 0.50 0.09
Sterling Energy SEY LN Equity HOLD 06.07.11 0.30 0.40
Tower Resources TRP LN Equity HOLD 09.07.10 0.04 0.03
Victoria Oil & Gas VOG LN Equity BUY 29.11.11 0.13 0.0

Spencer_Freeman Spencer P R Freeman
I was shown more intense & indepth detailed developing plans yesterday on 30th Nov which ExxonMobil have for Shaikan. Plans were incredible.

Hi Cyril.

Regarding your post No 2006
You may get a surprise in the next 3-4 weeks

A post of mine from somewhere else on Wednesday
________________________________________________
Please don't allow your expectations to be controlled, all because of the present Share Price, that will improve.

Don't be persuaded into thinking of xxx amount.

Don't forget the words of TK, "we have to control investor expecations", intentionally spoken.
You all should know why, reasons.
I have touched on the subject before.

Why has the Share Price not kept up with the Fundamentals.
Why did July 27th 2010 happen, 140p Funding, 203p spike, 140p Funding, all connected.

Watch for slow improvements in the Share Price over the next weeks. More snippits of News will escape.
Then watch for further gains via the Iraqi Oil Law, matters in hand.

Then it will move fast, more News from GKP plugging in the gaps in our knowledge, will push the Share price further, until it levels with the Fundamentals.

Further OIP numbers will increase the Share Price even more.

Q1-2 BIR's awarded, SH-7 OWC onwards, Offers.

Tenez soigneusement d'agent provocateur

IMHO, Mikey.
More View thread

TOGY talks to Todd F. Kozel
http://bit.ly/vDgTQi

Gulf Keystone is an independent oil and gas exploration and production company with an ambitious forward strategy for its operations in the Kurdistan Region of Iraq. Gulf Keystone operates two blocks in Kurdistan Shaikan and Sheikh Adi and has further working interest in the Ber Bahr and Akri-Bijeel blocks. Back in 2007, we thought that Shaikan could contain as much as 2 billion barrels of oil.

What is the current level of development of Gulf Keystones assets in Kurdistan?

Gulf Keystone has four licences in the region: Shaikan, Sheikh Adi, Ber Bahr and Akri-Bijeel. Shaikan has proved to be a significant discovery and a giant field by any measure. We believe that its already impressive range of gross oil-in-place volumes will increase even further. As part of our exploration and appraisal programme, we have recently spudded our fifth well on Shaikan and plan to start drilling our sixth well in early 2012. The plan is to complete the appraisal programme by late 2012 with a total of seven wells. Our Shaikan Extended Well Test production facility became operational in October 2010 and we plan to complete its upgrade in 2012. Today, we are focused on the test production from two wells and the plan is to build more production facilities as our operations progress and we move towards our stabilised production target of 5,000 10,000 barrels of oil per day.
In addition to Shaikan, in March 2010 a discovery at the Akri-Bijeel block was announced by MOL, our partner and operator of the block. The second exploration well has been drilled on Akri-Bijeel this year, which is being tested. In August 2011, we announced a significant range of gross oil-in-place resources for the Sheikh Adi block, which we operate. We have identified a location for the second well on Sheikh Adi, which is estimated to hold between 1 and 3 billion barrels of gross oil-in-place. We will start drilling this well in early 2012. Finally, the first exploration well on the Ber Bahr block, operated by our partner Genel Energy, spudded in October 2011.

What are the characteristics that made Iraqi Kurdistans oil so accessible?

The resource potential of the Kurdistan Region of Iraq is 45 billion barrels of oil, which is extremely significant for an area that three years ago was virtually unexplored. The reasons why we discovered the biggest onshore oilfield in the recent history of the region reside in the motivation of the Kurdistan Regional Government to search for that oil and maximise the resource for the benefit of the regional and national economic development. The entire Middle East has a distinct advantage, which consists of large production volumes and easy deliverability. Based on the impressive Shaikan field P90 to P10 range of 4.9 to 10.8 billion of gross oil-in-place and assuming an average recovery factor of 30 percent combined with Gulf Keystones fully diluted working interest in Shaikan of 51 percent, our finding costs for a net recoverable barrel range between $0.20 and $0.10 per barrel. In 2010 international majors oil finding costs ranged from $5 to almost $20 per barrel of oil equivalent for proved reserves. It means that Gulf Keystone is currently finding barrels of oil at under 5 percent of the international majors costs.

What is the current state of the infrastructure in the Kurdistan Region of Iraq? How will it develop in the future over the long term?

The discoveries have been made and now they need to be appraised. There are currently 17 rigs in the region and we estimate that there will be 40-50 in 2014. At the moment we operate three rigs with three more rigs being operated by our partners. We have started preliminary work on the Shaikan Field Development Plan, which in itself will be a massive undertaking. We are also working on a dedicated export pipeline project in order to bring Shaikan crude to the international market. Today our Shaikan-1 and Shaikan-3 wells are capable of producing up to 18,000 barrels of oil per day. Our future production volumes from Shaikan are projected to be over 400,000 barrels of oil per day. Such numbers could have a major impact on world oil prices and it is important to recognise how critical export and pipeline infrastructure will be in order to accommodate this future production.

What is the future of Kurdistans hydrocarbons industry in the wider context of the oil and gas industry in Iraq and the Middle East?

The investment environment in the Kurdistan Region of Iraq is transparent and attractive. The entrance of larger players points to the oncoming consolidation phase in the sector. The potential for large multinational oil companies to grow their assets exponentially by making an acquisition in the region will soon be too high to be neglected. Gulf Keystone entered the Kurdistan Region of Iraq in 2007 and today our aim is to realise the full potential of the giant Shaikan field, which is eagerly awaited by Gulf Keystones shareholders, the international oil and gas industry and the people of Iraq alike.

http://www.pukmedia.com/english/index.php?option=com_content&view=article&id=10707:constitution-gives-krg-right-to-sign-oil-contracts-mustafa-says-&catid=29:kurdistan-region&Itemid=385



Head of Foreign Affairs Department in Kurdistan Regional Government Falah Mustafa , in a press statement said that the Iraqi Federal Permanent Constitution gives his Government the right to sign oil contracts with foreign companies .

Mustafa , stressed that Kurdistan Regional Government , will not relinquish this rights.

The KRG pays great heed to develop the industry and natural res

Oil price to double says Iran

hmm?

http://www.pukmedia.com/english/index.php?option=com_content&view=article&id=10729:-krg-delegation-heads-to-us&catid=29:kurdistan-region&Itemid=385