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.

rq we like what we hear all we need now is light at the end of the tunnel!

Don't forget Algeria was their big hope for a long time when they turned down a bid of 74p---Iraq was just a fancy plan! Now we have partial success, Indian T/o rumours and they've ditched Algeria like a hot potato! This gives strong indications!!!

reported GKP selling Algeria for $150m

reported by whom and when and where - and what credence should be put to that?

cynic, look on advf and 3i's board for info, it seems to be cosha. The morning's share price will tell it all.

don't belong to either of those BBs and have no wish to ..... if sp rockets, i'm delighted, but see no rns

kosher (halal to the other guys) is the word!

Nice rise...plus 3p...

Guys..have you seen the increase...gulp !....euhhh I mean Gulf....even PET is rising...

ah yes! warms the cockles of the 'eart it does guv!

Just seen this on ADV.......makes interesting reading
Ht FT
Algerian hopes boost Gulf
By Abadesi Osunsade and Bryce Elder

Published: August 14 2009 03:00 | Last updated: August 14 2009 03:00

Gulf Keystone inched higher amid hopes that it was nearing an agreement to sell its Algerian assets to GDF Suez.

Gulf Keystone, which has regularly been the subject of bid speculation, faces a potential dispute with partner BG Group for suspending investment in Algeria to focus on its prospects in Kurdistan. Its shares rose 0.8 per cent to 31p.

doh! whilst a profit is a profit wish i had not sold so early been trying to get in again at say 36p but opportunities slim so far.

I'm not sure I like this rise because it means further to fall if there is nothing at the bottom....I reckon market makers are short of stock as well which is sending the sp up to try and tree shake some holders out...they will have to try much harder to get mine...

The possible assets could be company making and I am holding on, rf it appears that todays rise in the sp is attributed to the possible sale of Algerian interests, so rise away GKP.
2517

Let's hope they get a good price for them.

Agm about to start in Zurich.

Quick please fly me there !.

there'll be a good selection of gnomes to choose from for your garden collection

another interesting one from adv...imho
13-Aug-09
23:04 Gulf Keystone to focus on share placement strategy, unlikely to seek major strategic investor to help monetise assets
Story * Shaikan-1 drilling update expected in two to three weeks, likely to be material to share price, source says
* Based on estimates of USD 5/bl oil, company could eventually trade at multiples of current share price



--------------------------------------------------------------------------------


Gulf Keystone, the Kurdistan focused, AIM-listed oil and gas company, is expected to continue with its existing share placement strategy and is unlikely to seek a second major investor to fund its Kurdistan drilling programme, it is understood.

Last month the company said ETAMIC, a Middle East based private investment fund, had become its strategic investment partner for Kurdistan, a move that mitigated exploration risk. ETAMIC successfully negotiated the award of two new Production Sharing Contracts (PSCs) and will fund 50% of the contracts' costs, said the company.

GKP will vote at tomorrow's AGM for a new mandate to issue up to 250m new shares, as it looks at ways to monetise its potentially significant resources in Kurdistan. It is understood that going forward the company is eyeing the less dilutive share placement option against further draw downs on its GBP 30m standby equity distribution agreement, which it signed with YA Global Master Fund in May. A total of GBP 2.4m has been drawn down under the SEDA to date. This news service also reported earlier this week that GKP is looking to sell its Algerian assets, likely to French group GdF Suez. GKP's current market cap is GBP 155m.

A source familiar with the company said GKPs current cash position, from a USD 11m share placement to new and existing investors earlier this month, will run out in September 2009.

GKP will provide a second update for its Shaikan-1 well in Kurdistan in around two to three weeks if it reaches its next casing point at 2,500m on schedule, said the same source. This announcement could have a material impact on the companys market value, the source added.

Gulf Keystones shares surged last week to close at 29p after the company said it had discovered potential resources of 400m barrels of oil at a depth of 1,500m in the Shaikan-1 wells Sargelu formation. The company added that a further 1.5bn barrels of oil could be in the wells Alan and Mus formations, which lie in a 250m zone directly underlying the Sargelu discovery, according to GKPs investor presentation in April.

Two sources not involved in the situation estimated that oil in the ground in Kurdistan is worth around USD 5/bl. This figure corroborates with the enterprise value/proven and probable reserves of Norways DNO International, which is producing oil in the Tawke field in the north-west of the Shaikan Block in Kurdistan. More than 90% of the Norwegian-listed E&P companys 250m of proven and probable (2P) reserves are located in the Shaikan basin. DNO International has an enterprise value of NOK 8.7bn (USD 1.4bn).

Under the terms of its license for Shaikan-1, GKP has a 27% stake in any development post back-ins. Based on its published estimates of 400m barrels of oil, GKPs entitlement would then equate to 108m barrels. Using an industry standard oil recovery factor of 40%, Gulf Keystone therefore can expect to have rights over 43m barrels of oil. Multiplied by the USD 5 per barrel figure, this would equate to value of USD 215m (GBP 129m), which was in line with its market value at the end of last week.

According to these calculations, GKP could eventually be valued at more than USD 1bn, if it can firm up the 1.9bn barrels in the ground from the Shaikan-1 well. However, the source familiar and industry sources stressed that GKP had issued early indications of potential resources and that no certainty could be given to the amounts stated.

One of the industry sources said GKP was currently drilling in the secondary zones of the Shaikan-1 well and that it needed to go into the primary zones to establish significant levels of oil. This will take a further two or three months estimated the source, who is not directly involved in the situation.

The industry sources further cautioned that as GKP is a relatively late entrant into the region, the federal government in Baghdad may consider their export contract as illegal. One of the sources said DNO, Addax Petroleum and other companies in the region had signed contracts with the Kurdistan Regional Government before the Iraqi Constitution was made law. This is not the case for GKP, he added. However, the same source said there were indications that the federal government will in six to 12 months time recognize the later entrants contracts with the KRG as legal.

Meanwhile, GKPs statement on 30 July, in which it denied it was in talks with Indian state-owned entities regarding a USD 2.23bn bid, came after Indias main news agency PTI first ran the story.

by Ed Vinales and Oliver Adelman

Nice article, thanks.

GKP has currently 478.49m shares in issue. 250m more seems one hell of a dilution, depending on the issue price. Needs careful watching, imo.