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.

SHAMARAN: DRAMATIC POLITICAL IMPROVEMENT In KURDISTAN-CEO (Directly)2012-10-01 09: 49STOCKHOLM (directly) the political uncertainty surrounding existing oil companies in the Iraqi part of Kurdistan has decreased radically in recent years more and more benign news on a full oil contracts between the semi-autonomous Kurdistan and the Iraqi central Government is likely to come.
The description of the political situation makes the Shamarans Managing Director Pradeep Kabra, in an interview with the news agency directly.
"It has certainly been a significant step in the right direction in recent weeks, which has made the political situation has improved dramatically," says CEO.The full agreement between the two political parties are the major remaining issue to resolve knotty but Shamarans CEO exudes optimism about a future agreement.
"By being appointed a parliamentary Committee with a very broad composition where two Ministers from both Kurdistan and Iraq is included so it indicates a real determination to ro the full agreement of the port," said Pradeep Kabra, but exactly like predicting when such a law can be adopted by the Iraqi Parliament."It is very difficult to say when a full team is in port, but we expect that this happens," says CEO.Is the political risk in Kurdistan now almost entirely gone for oil companies?"The political risk is always there, but it is very limited now, thanks to the recent developments and the appointed Parliamentary Committee", says Pradeep Kabra, who generally believe that the oil business climate in Kurdistan."There is no problem whatsoever to do business in Kurdistan and we have not had any problems at all, which", says CEO.

Urgent ... Shaways: Ministry of finance started to pay oil companies operating in Kurdistan
Tuesday, 02 October 2012 13: 58

Deputy Prime Minister for Economic Affairs rose Nuri Shaways of the Iraqi Ministry of finance to start payments for oil companies operating in Kurdistan.

A statement from the Office of Shaways, received all Iraq [where] Tuesday, "the Ministry of finance in the Federal Government started to pay oil companies operating in Kurdistan."

Natural resources Minister in the Kurdistan asti hawrami, said in remarks to reporters on the sidelines of an Energy Conference in Istanbul, Turkey on September 24, "the territory expected settlement payments of trillion dinars [858 million dollars] from the Central Government in Baghdad next week, after the two sides reached agreement on the reimbursement of oil producers."

Announced on 13 September last agreement between the two Governments, Central and Kurdistan, includes payments to foreign oil companies operating in the territory, compared to the last lift oil production to 200,000 bpd. finished

http://www.investegate.co.uk/Article.aspx?id=201210040700108908N

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Strange, they were taking someone to court not many months ago for suggesting they needed more money........... and now they want more money........ LOL :)

Welcome back,LOL :)?

From Zengas ome of the best amateur analysis around.


Up to $250m (£156m) in total. Unless repaid in 5 years, it would create something like 55m new shares which is pretty small in the scheme of things and around 6.5% diluition (using 25% premium to 230p if it stays at this average today).

I'd expect them to be repaid given the production estimates in that time.

Another $55m to come from back costs if 3rd party rights awarded.

Akri-Bijeel sale pending the outcome of latest wells which would have a big impact (good or bad) on valuation.

Regardless of a bond, it doesn't hamper any potential bid. It leaves the company in a better and stronger position.

Certainly could leave the company sitting on an abundance of capital. Bonds $250m, 3rd party costs, if awarded $55m, Akri-Bijeel sale $250m ? = potential $555m + existing cash and income (if paid on time) from share of 30 - 40,000 bls in 2013 and growing.

Not surprising to see a drop in the SP,allowing for a lower setting of the bond price?

Just wondering if this the last chance to purchase at such an price?

No, it will go lower, imo, particularly with such heavy volume.

With artillery shells now flying between Syria and Turkey and with Israel missile action against Iran only perhaps a few months away now (get the US election out of the way) - GKP could be trading much lower soon.

Makes sense to get some money in the bag before the whole region potentially ends up in the middle of a couple of wars..............

C&P from another board.

Good point by Hub

08:27
Re: Interest bearing dilution?
Hub
3
buriram9,

As I explained to Mikey a while back - that's not how it works. It doesn't matter whether you are fully funded to mid 2013 - what matters is what happens after. You can't just run out of cash. Hence a placing was on the cards for sometime (even if some wanted to bury their heads in the sand).

But today's bond issue is better than the traditional 10% discounted share placing. It offers less dilution if converted to shares but costs shareholders an interest rate of circa 6% on the funds loaned.

It's important to reiterate that these bonds do not have to be converted. They can expire in 2017.

Hence - to those involved, they have no exposure to the share price and excalibur etc unless they want to convert at say 280p. Which they won't do until after the case or on the first sign of a firm takeover etc.

The big question that shareholders have to ask TK and the BoD's is this...

1. Is this a better deal for shareholders vs the sale of the AB asset?
2. Had production plans been met and mess ups avoided - bond issue could have been reduced
and thus dilution lowered.

Unless AB is sold for over $500mln imho - the above is a failure and due to TK playing naughty on AB and missed production targets.

No bonus shares for the board next year then !! If only!

HUB

The Convertible Bonds will be convertible into common shares of the Company. The Convertible Bonds are expected to carry a coupon of between 5.875% and 6.625% per annum payable semi-annually in arrear and the conversion price is expected to be set at a premium of between 25% and 30% to the volume weighted average share price of Gulf Keystone on the AIM market between opening and closing of the market today. The Convertible Bonds will be issued and redeemable at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature on the fifth anniversary of the issue of the Convertible Bonds in 2017.

This may be a very potential war zone in the near future...


Gulf Keystone, an independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq, has tripled its losses for the half year ended June 30th as general and administrative expensenses more than doubled on the back of a significant increase in the operational activities as the company's projects expand and mature.

A sharp increase in revenue was seen but was matched pound-for-pound by a rise in sales costs, resulting in no gross profit for both 2011 and 2012.

During the period the firm made further sales of crude oil from the Shaikan -1 and -3 production facility, which generated the increased revenue. The group's net entitlement to sales during the six month period was 367,881 barrels (1H 2011: 37,203 barrels), which more than offset the decline in the average price realised to $42.06 per barrel from $44.23 the previous year. Operating costs, excluding inventory movements, depreciation, depletion and amortisation costs and share based payment charges were $28.07 per barrel (1H11: $29.59 per barrel).

210p looking too expensive considering the area at risk and the fund raising and the dilution it has made.

how many have you shorted and at what price?

Dilution of 6.5%? That's bad Hlyeo? How do you expect a oil and exploration company to grow if they do not raise funds? The oil business is an expensive one and cannot be self funded by small fledgling outfits.
But I imagine you must be an accountant and able to determine the fundamentals to make the dilution claim?
I don't think anyone can argue that the area is a bit politically unstable.

Many many at 234p with a stop loss now at 234p in case it rises back. Target 150p on Syria/Turkey war...... :) and then target 50p on Israel/Iran war Q1 2013.

And if not then the stop loss comes into play and nothing lost.

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Let's see what happens here if Romney becomes president?

???????????? what has that to do with the price of bananas or anything else? ..... even if elected, he won't be inaugurated until january

oh by the way, you haven't got round to telling us at what price you have shorted this and the myriad of other stocks that you dislike
come to think of it, have you ever admitted to marrying money with mouth?

You are such a busybody, cynic. I am gobsmacked. Do I ask you what colour underwear you wear or how big your truncheon is!