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.

Lets hope all goes well?
On the operation side,we seem to have 2 results pending?

Ber Bahir where operator Genal is controlling news,but can't be long now and could be massive??

Bekhime-1 where testing is ongoing and expected to release results later this month?

So 2 weeks max,or 10 trading days should give us the answer?

Court room update by WHTFUTURE on the uva bb:


went to the court: Boring and nothing to worry about. Please don't read too much into the following. This is from my memory, and from rough notes, so I disclaim liability for any innaccuracies. Also, I am sure Oilman's man will report back, and fill in any gaps/clarify what I may have missed or got wrong. Other PIs attended, and I hope my notes below provide a basis of discussion, open to correction if I am wrong with the details...

Memry Crystal were not present at this hearing. The judge and CC were surprised they didn't turn up. I am not sure who were representing TKI, but it might have been Jones Day (the London branch of the Pittsburgh company). This was to do with TKI and not the other Gulf defendants.

The hearing was purely about disclosure which was scheduled for tomorrow. Excalibur said they are ready to give total disclosure tomorrow, whereas TKI were not in a position to. TKI had material available so far only from 2001 until 2007. but none available after that as yet.

It was noted that a lot of work has surely already been done in relation to disclosure back in the offices at Pittsburg, during the Florida court proceedings (re. TK's divorce), so CC made the point of 'why the delay?'. Judge said the Jones Day lawyers should have been in a position to disclose documents by 16th Dec.

Clifford Chance said to the judge that they wanted to do a 'hatchet' job highlighting on the failure of MC to attend, and against Jones Day for not giving a convincing reason not to be able to provide full disclosure documents in time for the 16th December deadline.

TKI want to provide full disclosure by 6th -13th january, because they had originally had 1500 documents, but were then presented with about 10000 so they argued that they couldn't provide the full disclosure by tomorrow, except in part. Even in part the lawyer argued, it would be hard to get them in on time for the 16th.

CC argued that these 1500documents have been available since the middle of the year, and in the electronic age it should be easy to provide electronic copies very quickly. Even the judge agreed, 24 hours. Whereas in the past hard copies would have to be provided and only that scenario would justify delaying the provision of documents until Jan 13th. Worst case there should be partial disclosure on a rolling basis, while they wait for the rest of the 10000.

So rather than put anyone in contempt, the judge suggested that they agree a rolling disclosure, which they agreed a schedule during a recess to discuss. The judge knew TKI lawyer was under pressure, but she said she was just acting in accordance with client instruction, but it was fair to say; although he agreed with CC, he coaxed her into organising a rolling disclosure schedule so that they were not in contempt at all.

The judge made a ruling that the defendant should indemnify Exc for costs for this hearing and disclosure. TKI lawyer miffed. The judge made this on the basis (my memory is sketchy here that MC had not applied for a delay ,had not made an appearance, and that it was not reasonable to delay for the above reasons with no explanation.

CC made a comment that the security of costs issue applied for by MC is still "bubbling away" but that nothing had yet come of it.

AFP
Thursday, Dec 15, 2011
http://news.asiaone.com/News/AsiaOne%2BNews/World/Story/A1Story20111215-316455.html

BAGHDAD - Iraqi Prime Minister Nuri al-Maliki told AFP on Thursday that oil giant ExxonMobil has promised to reconsider an exploration deal with Iraqi Kurdistan that Baghdad has strongly opposed.

"We had a meeting with (Exxon) in Washington and we discussed the contracts, some of which are located in disputed areas," Maliki told AFP in an exclusive interview as he flew back to Iraq from Washington.

"They promised to reconsider their decision," Maliki said.

Kurdistan on October 18 inked a deal with ExxonMobil for it to explore six areas, but Baghdad regards any contracts not signed with the central government as invalid.

An official with the Iraqi oil ministry said that two of the areas - Al-Qosh and Bardarash - are actually parts of Nineveh province that Kurdistan wants to annex into its autonomous region, a move Baghdad opposes.

The Kurdistan contract potentially puts an Exxon contract with the Iraqi government in jeopardy.

In January 2010, Iraq's oil ministry completed the deal with ExxonMobil and Anglo-Dutch giant Shell to develop production at West Qurna-1, which with reserves of about 8.5 billion barrels is the country's second-biggest field.

Usual well reasoned post by Zengas,


Bekhme has huge implications going forward for GKP.

While there is a massive 2.4 billion barrel OIP discovery at the Jurrasic level in Bijeel (which was drilled to 4383m), the company said - "it appears that the Bijeel structure could be a southern extension of the much larger Bekhme structure".

The test results are imminent after which we should shortly get an OIP estimate. It's these results which will impact the sale value for the entire block which i beleive will follow quickly.

The company said it expected a sale in the hundreds of millions ($). Two seperate reporters said they felt that the interest could go for $300m - $350m. From my own perspective i want to see a sale at or north of $280m.

Any buyer will also be getting access to the huge drill ready and imminent spudding of the Aqra prospect similar in size to Beckme and production from facilities being installed and readied for Bijeel within 6 months - a very tidy package.

We already have sufficient capital to see out the present drill programme in the most recent presentation - ie Shaikan 5 drilling (targetting a further 2 billion bls), Shaikan-6 spud imminent and Shaikan 7 (possibly might not drill imo and still contingent based).

Imo that will see no more drilling on Shaikan while a development plan/pipeline is submitted. With the number of wells drilled, Shaikan is a project that is production ready and capable for the 40,000 bopd that JG has stated and can kick in shortly when required once the facilities upgrades are finished. JG has also said that when production at Shaikan reaches 100,000 bopd the entire development of Shaikan (up to $7b cost) is entirely self financing.

The 1500 - 2000 bopd domestic production, if continuous (similar to WZR domestic rates) should be giving GKP over $2.5m/month.

The fact is that Shaikan is production ready, capable of 40,000 bopd and to GKP worth over $150m/yr. If the results from Beckme are good and GKP commands up to $300m for its stake, the company is in an entirely enviable position as to what next for that cash.

Though Bechme imo needs a good result, A buyer could strike on the basis of GKP being cash rich and production ready. This really is how enticing GKP could very soon look to both investor and prospective buyer a like.

1)Cash rich to the tune of $300m+ (which would reinvest).
2)Back costs owed at Shaikan - possibly $50m+ (which would re-invest).
3)Shaikan again producing and earning $2.5m/month.
4)Imminently capable of 20,000 bopd and 40,000 bopd over the next 6 months giving $150m+/yr (GKP Share).
5)Shaikan at over 10 billion barrels + OIP but still targetting much more (OVER 51% to GKP and reserves of a super major that BPs former Tony Haywood must drool over and only hope to emulate through Genel).

Imo GKP can't be backed into a corner or held to ransom for a cheap price *if* the strategy of the Akri-Bijeel block sales goes through.

With further Shaikan drilling on hold as the development plan is submitted, BerBahr and Sheik-Adi could be seriously exploited by GKP on its own. We know Sheik-Adi contains up to 3 billion bls in place on the western side and there may be much, much more on the other side of the block. BerBahr is in the Triassic and already near target depth.

These are potentially company changing times in terms of serious underlying value accretion (if successful) in the short days and weeks ahead in terms of Akri-Bijeel and BerBahr alone.

Posted by yellow snow

n the issue of the KRG not being able to afford the Government share (20%) of the licence, it reads to me that the costs up to the point of declaring a commercial discovery are not paid, but once the KRG do take up this share they are then liable for forward costs, so the pro rata share of $7bn of development funds would need to be found. So maybe the KRG plan is to waive the BIRs, up their share to 27.5% and then sell that on. The existing contractors are happy, as they will have gained a bit (an extra 6% to GKP/Keystone), and any buyer of the KRG interest doesn't have to shell out for prior costs. KRG gets pots of money one way or the other I suppose but it might sweeten things all round.

Exxon woos GKP to gain Kurdish base
MARK LEFTLY SUNDAY 18 DECEMBER 2011
http://ind.pn/tiA0gE

US oil supermajor Exxon Mobil is understood to have sounded out London-listed Gulf Keystone Petroleum (GKP) over a possible deal that could value the Kurdistan-focused group at around 7bn.

GKP has a market capitalisation of around 1.5bn and is listed on the junior Aim market, but its chief executive, Todd Kozel, believes the group could eventually go for double-figure billions. GKP is sitting on what is considered to be one of the world's great recent oil finds Shaikan, about 50 miles north-west of Kurdistan's capital, Erbil but the regional government is known to want a supermajor on board to properly fund and develop the field.

It is thought that the board would not accept the estimated 8-a-share that Exxon is considering and that a number of other companies, perhaps including China's Sinopec and Californian giant Chevron, are monitoring the situation. There is even some speculation that an informal four-way auction for GKP might be under way, while it is also believed that the company has spoken to at least two smaller businesses about potentially developing its assets in a joint venture.

Last month, it emerged that Exxon was the first of the oil industry's giants to enter Kurdistan, taking six licences. However, this has angered the government in Baghdad because there are old territorial disputes between Iraq and Kurdistan.

Baghdad had threatened to terminate Exxon's existing deal in southern Iraq and it had been reported that the US giant might reconsider its licences in Kurdistan. However, the lucrative potential of the Kurdistan fields means that analysts expect Exxon will pursue opportunities in the semi-autonomous region and may already have taken additional positions to those licences previously revealed.

There are suggestions that Exxon's interest in GKP was discussed at a board meeting 10 days ago and that initial soundings may have been taken at least six weeks ago. Last month, much of the oil world descended on Erbil for a conference that highlighted the extraordinary oil opportunities in Kurdistan, with Mr Kozel one of the key speakers.

It is believed that Mr Kozel would be happy to sell up soon and has even started mulling over his next venture. The American businessman is one of the most colourful figures in the City and has a base of devoted retail investors who are waiting for a takeover of GKP to make them rich.

GKP declined to comment. Exxon did not return calls.

Link :

http://www.independent.co.uk/news/business/news/exxon-woos-gkp-to-gain-kurdish-base-6278531.html

.

Citywire-Share tips/bids
Citywire Money
by Himanshu Singh on Dec 18, 2011 at 05:23
http://bit.ly/uc04gA

Citywire-Share tips/bids
SpikeyDT
Citywire Money
by Himanshu Singh on Dec 18, 2011 at 05:23
http://bit.ly/uc04gA

Iraqi PM:KRG contracts
by Patrick Osgood on Dec 18, 2011
http://bit.ly/uawXPY

A Common Interest for Baghdad and Washington to Maintain their Relationship
18 December 2011
http://bit.ly/sYNEb8

800p a share more like 300p imo.

US oil supermajor Exxon Mobil is understood to have sounded out London-listed Gulf Keystone Petroleum (GKP) over a possible deal that could value the Kurdistan-focused group at around 7bn.

GKP has a market capitalisation of around 1.5bn and is listed on the junior Aim market, but its chief executive, Todd Kozel, believes the group could eventually go for double-figure billions. GKP is sitting on what is considered to be one of the world's great recent oil finds Shaikan, about 50 miles north-west of Kurdistan's capital, Erbil but the regional government is known to want a supermajor on board to properly fund and develop the field.

It is thought that the board would not accept the estimated 8-a-share that Exxon is considering and that a number of other companies, perhaps including China's Sinopec and Californian giant Chevron, are monitoring the situation. There is even some speculation that an informal four-way auction for GKP might be under way, while it is also believed that the company has spoken to at least two smaller businesses about potentially developing its assets in a joint venture.

Last month, it emerged that Exxon was the first of the oil industry's giants to enter Kurdistan, taking six licences. However, this has angered the government in Baghdad because there are old territorial disputes between Iraq and Kurdistan.

Baghdad had threatened to terminate Exxon's existing deal in southern Iraq and it had been reported that the US giant might reconsider its licences in Kurdistan. However, the lucrative potential of the Kurdistan fields means that analysts expect Exxon will pursue opportunities in the semi-autonomous region and may already have taken additional positions to those licences previously revealed.

There are suggestions that Exxon's interest in GKP was discussed at a board meeting 10 days ago and that initial soundings may have been taken at least six weeks ago. Last month, much of the oil world descended on Erbil for a conference that highlighted the extraordinary oil opportunities in Kurdistan, with Mr Kozel one of the key speakers.

It is believed that Mr Kozel would be happy to sell up soon and has even started mulling over his next venture. The American businessman is one of the most colourful figures in the City and has a base of devoted retail investors who are waiting for a takeover of GKP to make them rich.

GKP declined to comment. Exxon did not return calls.

puff, puff, puff! ...... i'm sure i have also read in reputable press that exxon may not now be so keen to upset baghdad by piling into kurdistan .... a lot more to play for and a longish time in the cooking i reckon

I'm not in at the moment....perhaps should be....but there is that court case of some kind......also 165p or so....plus very small production equivalent to PTR in Russia.....now I know that's a perhaps ridiculous comparison but taking a look at the market caps.....huge difference and petroneft have quite a bit in the ground...now I'm not knocking GKP...it's just that going through that 200p mark might be difficult....very difficult to time anything in these bad times....the production will remain small for ages....that might hold the sp back unless the so called sale of some assets goes ahead......

We've had several false dawns as far as take over offers are concerned,i should think today's story calls for a response from the company(as in Nov)? While an offer of 8 would be most welcome,for me perfect timing would be closer to end of of tax year,,say late March.

Iraq Oil Report-Oil&Gas Law
SpikeyDT
By BEN VAN HEUVELEN of Iraq Oil Report
December 18, 2011
http://bit.ly/t330Lz

Iraq Increases December Oil Exports by 1.9% From Month Earlier
By Kadhim Ajrash and Nayla Razzouk - Dec 18
http://bloom.bg/sPoKht

Exxon .. Game or oil policy in Iraq
On: Sun 12/18/2011 14:43
http://bit.ly/vVQyZN

OIL: Exxon Mobil put between the two options to work in Iraq Sunday, January 18 /12 December 2011
http://bit.ly/uA5PjS