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.

Just up,so takung note of other more knowledgable pi's,here's ZENGES's summing up.


ZENGAS -

Very, very good update.

First time i have seen oil attributed to Aqra and Bechme of between 2.9 - 5.4 billion barrels in place with a mean range of 3.9 billion bls. It's heavy but still a significant amount and although not appraised for commercial recovery, it could be open to steam recovery as was stated in the amount attributed to the very shallow part of Shaikan (which is not included in the Shaikan figures). So that makes significant oil found in EVERY well/structure drilled to completion on all GKPs blocks to date.

Bijeel discovery being appraised and 2.4 billion bls in place.

Shaikan 4 well - best well to date with new productive zones which appears to be a series of flow tests of 14,000 boepd from these new zones.

New oil found in the Shaikan field footwall as a result of Shaikan 4 - "PROVES AN EXTENSION OF THE TRIASSIC AND JURRASSIC RESERVOIRS OUTSIDE THE CENTRAL PART OF THE STRUCTURE" - Also a NEW reservoir testing (TEST-6) in excess of 4,000 boepd in the 'hanging wall'. Imo we should see a new OIP upgrade in due course.

Test prpoduction has averaged 5641 bopd since 25th February but has now reached 6790 bopd on 4th March - should be over 5000 (75% basis) going to GKP and at $50/b average domestic = $7.5m/month. They also sate they expect this production to increase.

"We anticipate that future test production from Shaikan-4 will **SIGNIFICANTLY** increase our existing production level, which reached 6,970 gross barrels of oil per day on 4 March 2012. Possibly achieve $10m/month net in domestic oil sales if as they say they expect it to rise significantly.

Full production would achieve rates close to 100000 barrels a day perhaps.....if so...incredible...that's from all zones at a guess...

http://www.proactiveinvestors.co.uk/companies/news/40085/gulf-keystone-describes-shaikan-4-results-as-excellent-40085.html

how many pipe lines would be needed for 100000 barrels aday??

One...but a big one......how would I know ?....just guessing....and like you say the sp drops.....I'm telling you :.... sack all your workforce and your stock will rise.....

(:((

March is a bad month normally, as you guessed it, earlier this month we moved into the 30 day period from tax year end.

So lots of selling for tax reasons and then "stay out" for the mandatory 30 days before buying back in.

Things will get better once 30 days from the big fall day recently has passed, until then expect plenty of people taking their profits for tax year end.

Every man and his dog who knows the markets knows this - forget the muppets saying conspiracy and manipulation, its March, its coming up to tax year end and people are selling and many will not buy back in for 30 days from when they sell.

pi's stampeding for the lifeboats

I'm not playing this right....not sure what to do...

saying put myself, must admit pro did the right thing at 450p but i would have been back in at £3 something.,.

RF - if you are not over-exposed, then logic is stay put ..... if otherwise, then indeed something of a conundrum, but prob best call would be to reduce

? I think the pont made of the political risks will have made many more cautious,but todays RNS is just part of an ongoing picture being played out?Some dumpong on news and with the end of tax year in sight,i expect many are exercising their allowence,back in 30 days?

Disappointing that this is not above 300p at least....

After the initial negative reaction,SP recovering to 276p. Off out now.

Think that ends takeover rumours and hype then :


Seymour Pierce:

Gulf Keystone Petroleum 1 (BUY) - Operational update
GKP (287p, Target price 524p) Market cap: £2.5bn
The company has provided a comprehensive update on its operations in Kurdistan, primarily on its core assets Shaikan. GKP has now completed six of the seven planned tests at the Shaikan-4 appraisal well which have flowed at an aggregate rate of 14,000bopd. The current test is ongoing and producing at a rate of c.4,000bopd.

At Shaikan-5, due to a section of the drill string becoming stuck in the hole a sidetrack was required. This was successfully completed and the well is drilling ahead to 3,000m. No timing for completion was stated, but is subject to technical conditions. The Shaikan-6 well is also drilling ahead and is currently at 2,058m with a target total depth of 3,800m planned.

GKP has started the tendering process for the Shaikan-7 exploration well. No estimates for initiation of drilling were stated.

Finally at Shaikan, the extended well test has averaged 5,641bopd since 25th February 2012, this is in line with our expectations. Production prior to this date was 2,077bopd due to cold weather conditions as well as the requirement to connect a new 20,000 barrel storage tank into existing infrastructure. GKP has received bids as part of the tendering process for the Shaikan export pipeline and these are being evaluated.

Due to the rig being hit by lightening, the Aqra-1 appraisal well has ceased operations whilst repairs are made. No timing was stated for the restart of this well.

Finally, the Ber Bahr-1 well continues to drill ahead. We forecast that this well will be completed later this month.

Overall these are a mixed set of operational results for the company today. The company is clearly making progress at Shaikan, but we had been expecting more of an update at Ber Bahr-1 which may result in the market being slightly disappointed this morning.

We also note that CEO Todd Kozel was interviewed on CNN this weekend where he discussed the independence of the company. He stated that in the short to medium term GKP would remain independent, but also stated that in the longer term that this may not continue to be the case.

Dr. Dougie Youngson | Oil & Gas Research | 020 7107 8068 | dougieyoungson@seymourpierce.com

That might also explain the sell off this morning, if there is no chance of a takeover short to medium a lot of people will be selling and moving on.

No position in GKP myself.

my holding is now fairly modest having been punished of late for my stupidity and greed (pretty much the same thing) and shall prob hold that until the eventual t/o or end of time, whichever is the sooner

No takeover on the cards

currently no selling pressure but clearly no buying interest either ..... would not be at all surprised to see sp slip away to say 250 by close of biz

200p on the cards? Canaccord may be rubbish, but their 210p target is looking possible.