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.

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

Author

Bah Bah Black Sheep View Profile Add to favourites Ignore



Date posted

today 07:45



Subject

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



Votes for this Posting

Voted 15 times.



Message




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

Goldmans note from pfc30 on 3i:

Kurdistan: political risk vs. geological upside
Kurdistan is one of the last, underexploited, major
onshore basins open to independents. We assess
the potential downside for a renegotiation of fiscal
contracts and believe that even in the event of
technical service contracts being introduced, NPV
support of c.US$1.2/bl for pre-sanction oil assets
could exist. We also believe that M&A is likely to
consolidate the region. We initiate on Afren and
Petroceltic with a Buy and Genel with a Neutral

Afren (AFRE.L): Diverse geography and portfolio combines with attractive valuation; Buy 48
Asset overview 52
Genel Energy (GENL.L): Pure play on Kurdistan; cash offers additional optionality; Neutral 53
Asset overview 57
Cash offers opportunity to create more value 58
Petroceltic International (PCI.L): Algerian asset undervalued, initiate as Buy 59
Asset overview

Gulf Keystone (GKP.L): Down to Neutral

Gulf Keystone: Target price reduced as a result of the dilutive impact of an equity placement and adjustments to prospect sizes
following triangulation with partner data. New TP 343p

By
scaramouche :-

The questions I ask myself when I see T/O predictions like we have seen today are:

1. Is the source credible?
2. Are the figures quoted reasonable?
3. Is there much in the way of supporting evidence?

Firstly, there seems to be much to back up the credibility of Nobletrader. One of our trusted posters, oilman63, has really put his head above the parapet by saying that he believes this source to be reliable. In addition to this, we have seen a series of predictions from nobletrader in the past which the general consensus seems to be were pretty close to the mark. I have not followed his posts closely but I am prepared to concede that he is at least CREDIBLE.

Secondly, if we take what we know already about Shaikan, Sheikh Adi and Ber bahr, it is reasonable to assume that a prospective buyer might use a 30% RF and start with the P50 figures to date as the basis for their valuation.

Shaikan: 10.5 billion x 54.4% Net WI x 30% = 1714 million barrels of reserves.
Sheikh Adi : 1.9 billion x 80% Net WI x 30% RF = 456 million reserves.
Akri Bijeel: 2.4 billion x 12.8% Net WI x 30% RF = 92 million reserves.
So, the total at this point is 2262 million barrels of reserves.

On top of this, we know that GKP has about 220 million ($350 million) of refundable costs based on their capital expended to date, and maybe a further 150 - 200 million of funds left following the recent placing and what remained from their previous cash in the bank. Let us call it 400 million overall.

We also know that, based on $100 oil, GKP gets around $8 NET PROFIT per barrel based on the terms of the PSC, but that a buyer will also want to benefit from their purchase of GKP. That $8 could therefore be halved with $4 going to GKP... and $4 to the buyer. This figure is also reasonable when you consider that TSCs for the development of known fields in Southern Iraq pay $2 per barrel, and Shaikan could now be regarded as a known field.
Feed these numbers into the calculations and you get 2262 million barrels of reserves x $4, plus about $600 million = $9.6 billion.

Under this scenario, you can certainly get somewhere close to the alleged bid of $10.4 billion from Chevron if it was tabled today.

Given our future expectations for Shaikan and the other fields in which GKP has an interest would this be a REASONABLE offer? Personally, I dont think so, as it allows virtually nothing for the upside and we already know that Shaikan-4 , Bekhme-1 and Ber Bahr-1 are very likely to increase those OIP figures.

However, there is certainly an argument that, given political concerns and other uncertainties, this figure might have appeared on the table. For the moment, I will therefore reluctantly accept that the answer to REASONABILITY OF THE FIGURES might be a Yes.

And finally, to my third question as to the supporting evidence that a bid might be tabled by Chevron now?

We have read that Chevron was amongst the companies recently having talks with the KRG; a recent newspaper article referred to Chevron having run the slide rule over Shaikan; and GKPs own Adnan Samarrai was quoted as referring to Chevron as being interested in GKP in as very recent article, when Total and Chevron were both mentioned as having the capability of dealing with the removal of hydrogen sulphide. And of course Exxons entry into Kurdistan does seem to have paved the way for the imminent arrival of another U.S. super-major.

So, yes, I think we can put a tick in the box for EVIDENCE as well.

*** It therefore seems apparent to me that Nobletrader's first claim is certainly feasible although not yet proven.***

But what of the suggestion that Sinopec might have offered a bid that was perhaps twice as much as Chevrons $10.4 billion, or more but the KRG have declined it?

Sinopec are known to have bought out Addax by making a very high bid for their assets in 2009, and China are known to be willing to pay much higher sums than normal per barrel to guarantee their future oil security.

The Chinese are also known to have offered much more for Genel than Tony Haywards Vallares did. Genels CEO Mehmet Sepil confirmed at the Vallares/Genel launch that THs bid was not the highest offer, with the implicastion being that it would however allow Genel to continue to benefit from future discoveries. But what if the real reason was that the KRG wanted a high profile figure like former BP CEO Tony Hayward to help bolster confidence in Kurdistan, and exercised their influence in the rejection of the Chinese offer?

So, there is much to suggest that the Chinese might well have made a far higher offer, but that political influences might dictate that a lesser offer be accepted from a supposedly much more influential ally. I'd have to give this part of the rumour a tick for feasibility too.

*** In conclusion, I have to say that there is much to support the latest rumours from Nobletrader. I have ticks in the boxes for all of my original questions, plus a recognition that the Chinese are likely to have tabled a much higher bid.****

But here is where I feel that we should be asking ONE FURTHER QUESTION....

What solution would actually be BEST for ALL parties Kurdistan and Iraq, Chevron and Sinopec, the shareholders (no doubt bottom of the pile!).... and WORLD ORDER? You see, ultimately I truly believe that there is actually much more at stake than just the value ascribed to our GKP shares!

The solution we are led to believe that the KRG are backing is that Chevron (or perhaps Exxon) will lift the Crown jewel of Kurdistan, as their prize for bringing U.S political might to the aid of the KRG, and that this will get the ICG off their backs for good.

BUT if the rumoured bid transpires and American influence expands in Kurdistan, while the Americans would be their allies, the Chinese would be angered that for a second time that they were left out in the cold; the ICG would feel that the U.S powers were being used as a weapon against them, and foreign investors like ourselves would undoubtedly be wary of investing in that region for fear of being ripped off again. I am NOT convinced that this would really be the best solution for anyone.

IMO, there is a second and far more effective option... and certainly one which should be carefully considered by GKP and the KRG in the course of the ongoing negotiations.

Let us say that the Chevrons slightly contrived offer amounts to 8 per share, while Sinopec had been willing to offer 16 based on what they know about GKPs assets and potential. The compromise figure would then be around 12.

If an arrangement could therefore be made which allowed both Chevron and Sinopec to have an EQUAL SHARE in all of GKPs assets, this would bring about a Partnership between 2 oil giants keen to develop and exploit GKPs huge discoveries; allow both companies to bring their respective skills and expertise to Kurdistan; and ensure that both the American and Chinese super-powers would be adding their influence to the security of the region.

Furthermore, from an investment perspective, there would be none of the signs of the stitch-up of foreign investors who had chosen to risk their money in the Wild West as Iraq/Kurdistan is coming to be known, to the detriment of the image of the region.

IMHO, OIL is such an important global resource and its relevance to world order is so great that it would be foolhardy in the extreme if the KRG was to ignore a perfectly reasonable compromise solution, make themselves totally reliant upon their friends from the USA... but simultaneously alienate the Chinese.

Maybe some people have doubts about the ability of the Americans and Chinese to work together, but all the evidence is actually very different. Sinopec has undergone a number of joint ventures in the past with the U.S oil giant ConocoPhilips; and Sinopec and Chevron have collaborated on a number of projects including an Indonesian gas project, a deal signed in December 2010.

http://english.peopledaily.com.cn/90001/90778/90860/7220369.html

So, Todd, if youre reading this, I sincerely hope that you ensure that the KRG consider not only the benefits that might arise from a bid for GKP by the USAs Chevron, but also whether their own interests might be better served by some kind of joint solution that also includes CHINAs Sinopec.

GKP's potential 100 BILLION barrels across all 4 licences is surely rather too much for just ONE oil super-major and perhaps.... more than enough for TWO!

AIMHO and please DYOR.

GLA, scaramouche

A must view video imho,70mins long including questions.

http://www.goldmoney.com/video/martenson-presentation.html

http://www.reuters.com/article/2011/12/05/iraq-basra-autonomy-idUSL5E7N51YM20111205

http://www.krg.org/articles/detail.asp?rnr=223&lngnr=12&smap=02010100&anr=42594