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.

Some bullish comments from Kozel re the current Kurdistan drill

thought the numbers were very unexciting to say the least, so cut and took a smallish loss

"Gulf Keystone Petroleum Ltd (AIM: GKP), today (24.06.09) announces the following progress update on the Shaikan-1 exploration well, Shaikan block, the Kurdistan region of northern Iraq.

The Shaikan-1 well was spudded on 27 April with a planned TD, pending actual drilling results, of 3000 to 3500 metres. The range of TD depths reflects the under explored nature of the area and the lack of nearby correlation wells.

Following the setting of 20' surface casing at about 100 metres, the well plan called for the drilling of an 8-1/2' pilot hole down to the 13-3/8' intermediate casing point. This decision was based on a number of operational considerations. Primarily, the fractured nature of many of the shallow geological formations and the resulting high likelihood that mud returns would be lost and thus much of the interval would have to be drilled without the information normally gained from drilling mud returns. Under these conditions it is more prudent to drill a smaller, easier to control pilot hole as a first step.

Much of this section was, indeed, drilled with little or no drilling mud returns. In addition, consistent with the active oil seeps in the area, much of the pore space in these shallow sections was filled with tar and very heavy, dead oil. At depths below 1350 metres the well began to encounter lighter, live oil shows.

Subsequently, it was decided to log the entire open hole from 100m down to 1510 metres. However, swelling shales prevented the logging tools from getting below 1000 metres. Reverting to the planned well program, it was decided to open the pilot hole to the full 17-1/2' diameter necessary for the running of the intermediate casing.

Currently the well is drilling 17-1/2' hole at about 1100 metres towards the planned intermediate casing point at 1350 metres. Oil shows have increased significantly as the larger hole approaches the deeper portions of the pilot hole. After setting the 13-3/8' casing at 1350 metres, GKP plans to log the remaining portion of the open hole down to 1510 metres. It is this lower portion of open hole that has shown indications of porosity and from which we believe the oil inflow originates. Pending log results, a limited flow test may be warranted.

After evaluation of this unexpected shallow zone, the well will be drilled to the next casing point as planned. The primary zones of interest for this well are still below the depth of current activities. Plans are to reach the final TD of 3000 to 3500 metres, pending actual well results and any future testing, during September."

Very promising so far with some oil discovered in a shallow zone,...that's the thing with Iraq : there is oil there and loads of it !.

Just imagine what the sp will do if they hit something like Heritage oil...dream on required field....must say I have a shed load of these !....but so far so good with multiple horizons to be targeted !.

Sp up 20% this morning, but would expect that to drift back a little & that may be time to buy in/top up. Initial drilling results look very promising, imo, but a long way to go & nothing certain 'til late aug. GKP are still loss making & a strike would certainly help the balance sheet.

looks good for 20p by the end of the week.

Well they have discovered some oil so at the least we could have a smallish producing well.....it does look promising but like you say Harrycat there is a long way to go but at the moment : this summer, this company looks like having the most interesting drilling campaign going, and in the event of failure to find deep oil they will probably drill again somewhere on their license......perhaps I'm too optimistic but we could have a gem like HOIL here !.

Loads of buys from what I can see here...the only cloud on the horizon that I can see is this round of license awards coming up.....as you never know where you are with these Iraqis...I keep on saying this but : Iraq should be one of the wealthiest countries in the world and if that nutcase of saddam hussain hadn't attacked Iran and Kuwait and messed the Allies around it would be today without a doubt the wealthiest, enjoying tremendous prosperity...fancy attacking Iran...really nuts ...!.

ADDAX is being taken over by the chinese READ RNS what price GKP and HOIL?

It can only help the sp upwards that's for sure.

Encouraging drill rns.

Good bounce today, perhaps some news on the way.

I'm in up to my neck with this stock....too overweight you could say...now they really depend on a discovery here....the fact that they are dumping Algeria in favour of Kurdistan makes me think that they might be on the verge of success.

Algeria Update
"Gulf Keystone Petroleum Ltd. (AIM: GKP), an independent oil and gas exploration and production company with assets in Algeria and Kurdistan, today announces its intention to seek a buyer for its interest in the Hassi Ba Hamou Permit (the 'Permit'), in central Algeria. A sale of Gulf Keystone's interest in the Permit is subject to approvals from the Algerian Government and the Company's partners, Sonatrach and BG North Sea Holdings Limited ('BG').

Following appraisal and exploration successes on the HBH Gas Project (the 'Project') the partners in June 2008 elected to go into Phase 2 of the exploration contract with an additional three well and 2D seismic commitment. Planning for the development and commercialisation of the Project has also begun but revenues are not expected to commence until 2014. Given the significant near-term upside potential of Gulf Keystone's interests in Kurdistan, it is the Company's considered view that shareholders' interests would be best served by the Company focusing its resources entirely on its Kurdistan operations. Gulf Keystone has therefore suspended further investment in the Permit and, as a consequence, has opted not to pay certain due cash calls in respect of the Permit. BG, which acts as Operator of the Permit, has certain rights under the terms of the Joint Operating Agreement ('JOA') which could, subject to certain Permit conditions, lead to Gulf Keystone's withdrawal from the JOA and the Permit."

Harry looks like you may be right, we are in looking for 20p short term, but may well prove to be a great deal more. The kurds seem to want to go their own way on oil developement while the central government dithers pending elections next year.

More contracts awarded to Gulfkeystone....this is looking good...the well they are drilling now has live oil in the shallow section, now even if the deeper prospects turn out to be negative...they must have a huge chance of hitting a jackpot in the future...they would have to be mighty unlucky not to have something down there somewhere.

ALGERIA UPDATE
"Further to the announcement dated 14 July 2009 that Gulf Keystone had suspended further investment in the Hassi Ba Hamou Permit ('Permit'), the Company has now been duly notified by BG North Sea Holdings Limited (BG), as Operator, that it is exercising certain of its rights under the terms of the Joint Operating Agreement ('JOA') which could, subject to certain Permit conditions lead to the Company's withdrawal from the JOA and the Permit and forfeiture of all rights there under. BG also claim a cash sum due of $7,457,041. The Company has filed for arbitration under the JOA relating to a dispute over the validity of cash calls and breach by BG of certain conditions.

The Company contends that the rights which BG seeks to exercise are unenforceable and will seek all remedies available to it to oppose such exercise. The Company also disputes liability for the amount claimed.

Gulf Keystone confirms its intention to seek a buyer for its interest in the Permit. A sale of the Company's interest in the Permit is subject to approvals from the Algerian Government and Gulf Keystone's partners, Sonatrach and BG."

That is the downside....but should be sorted out.....GKP must be incredibly confident to drop Algeria like this....the 4.5 million pounds will seem like chicken feed in the event of a strike....it is all possibles and probables but the potential is massive...if there ever was a ten bagger : it could be this one !.

No doubt the dispute with BG will be settled out of court eventually. The upside is a tremendous opportunity and the company seem very confident, watch this space!