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.

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http://www.reuters.com/article/2012/11/07/us-iraq-exxon-idUSBRE8A60Y420121107

part of iraq oil report:

By Patrick Osgood of Iraq Oil Report
Published November 8, 2012 ERBIL - A new Turkish state oil and gas company is negotiating with Iraq's semi-autonomous Kurdistan region to take stakes in several exploration blocks – a development that would signal dramatic headway for the Kurds in their quest for oil sector autonomy.

No contracts have been signed, but four officials familiar with the talks confirmed that negotiations have reached an advanced stage.

The new Turkish company is looking to enter at least five Kurdish exploration blocks, according to the offic...

http://www.investegate.co.uk/gulf-keystone-petrol-%28gkp%29/rns/sheikh-adi2-exploration-well-discovery/201211080700206097Q/



"We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year. This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq."

21:49
Court 7/11
seebeearrgh
22UP

No notes made today but a few points worthy of mention from memory.

Mr "sliipery" Wempen has been shown to tell porkies today..more than once

When giving conflicting evidence he was asked.'is your wriitten evidence or your verbal evidence correct?'

Blackmailing TK was discussed in an email from EW to RW

During the mid morning break the right side of the court (GKP) was quite noisy and bouyant, quite a contrast from the left which was quiet.

Sorry nothing specific but I'm sure our great reporters are on to it.
Great to chat with others today.

JG warming up ad doing a stunning job.
Reassured more each day.
Still the big question....how the hell did this case get to court?

Nige

- Blackmailinging TK was discussed in an email from EW to RW"
The Wimpens really are something special !!!

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http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3AGKP.L&it=le&action=detail&id=10165043

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The next section focussed on an email exchange between RW and Eric where RW was saying he wanted protection if the agreement came under international scrutiny. JG suggested his security clearance may be jeopardised if the tide changed and the PSCs were seen as politically undesirable.
RW said he was nervous as he’d just been cut out of the deal and was having some reservations about the entire activity. Worried he wouldn’t receive any monies, and trying to settle the dispute with Gulf. Concerned that the PSCs from which the monies were derived should be seen as legitimate activities, and if Gulf had done anything ‘improper’.

JG Was this another reason Excalibur might not want to appear on PSC, given the situation in Kurdistan was so volatile?

RW I don’t see why this would be an issue.

RW emailed Eric on 25th November 2007, after the PSCs had been signed) forwarding an article mentioning that Baker’s (?) role in the Hunt deal had annoyed the US Govt and the Iraqis. There was hostility within the US Govt to signature of the PSCs with the KRG. The article said the agreement could have no legal standing.

JG You knew the US Govt would frown on the PSCs. This is why you wanted the deal done ‘under the radar’.

RW I wanted to keep it confidential and was aware of the complications, however, this didn’t outweigh getting the deal of a lifetime. I couldn’t conceal it from the US Govt.

The next part revolved around ‘parallel’ routes via lobbying by certain people to Barzani. There was a ‘packet’ that was to be hand-delivered to Barzani by Keith Schuette. This was delivered by RW to KS at his yacht at a dockside location.

JG asked what was in the packet and why did it have to be delivered by hand. RW said it was a presentation which was too big to email. Who wrote it? ‘I believe I did’. RW didn’t remember if there was a covering letter. He was trying to speed up proceedings by using ‘friends in Washington’. Bringing it to the forefront of Barzani’s mind. JG suggested that the idea of lobbying was to get US politicians involved who looked favourably on Kurdistan.

Then there was mention that it was a one page letter with no attachments and that it was a detailed counter offer to the one made by Dr. Ashti. Then there was talk of supporting documents.

JG said it was clumsy and misguided and that it did no good.

RW It was not clumsy and misguided and lobbying happens every day.

JG : Dr Ashti has said that Excalibur was guilty of serious misdemeanours.

RW : He’s entitled to say what he wishes to say. I don’t know what he was referring to.


We now jump to November 2007. An email from Eric to RW after they had been cut out of the deal.: ‘chances are they won’t strike oil anyway’.
The email referred to ‘every conversation will come up’ and mentioning TK cheating on his wife, and ‘payoffs to Barzani’.

JG suggested this amounted to blackmailing TK and his wife regarding his infidelity.

RW said they were angry they had been cut out of the deal of a lifetime.

JG : How would you characterise this if not blackmail?

RW : We were angry.

JG (Exasperated) Yes, let’s assume that. Why is this not blackmail?

RW : Eric was having a stream of consciousness moment, but we didn’t do it.
(I loved this bit!!!)

JG : Were there payoffs to Barzani?

RW : This was Eric being creative.

JG : Are you suggesting that my client was involved in a payoff? What were the payoffs you had in mind?

RW : We didn’t have any payoffs in mind, though we could accuse TK of this.

JG: So you were considering putting a gross libel into circulation?

RW : View it in the context that TK had just cut us out of the deal. I didn’t know we’d end up in this situation. Nothing was done about it.

Judge : So there were never any payoffs to Barzani?

RW : No. Some things were clearly inappropriate but we never did anything inappropriate.

JG : So there were no payoffs to Barzani?

RW : No.

Well RNS as i felt was due. 80% for uGKP

From a v knowledgable poster.


from bbbs on other board

Hi BBBS. W'd you pls. put today's RNS in a language that a lay person like me understands?

===============================================================

Hello AUDIRS6,

The RNS is fairly is pretty much self-explanatory (IMO):

- "Provisional results indicate the oil gravity is similar to that found in the same formations in the Shaikan Block namely 15-18 API." Just join up the dots ....


- "In line with the Sheikh Adi PSC, following the notification of discovery, the Operator will submit a Discovery Report ...". Oh dear, not another DISCOVERY.

- "Gulf Keystone is the Operator of the Sheikh Adi Block with an 80 per cent working interest, while the Kurdistan Regional Government has a 20% ...". Oh dear again, only 80%

- "Todd F. Kozel, Gulf Keystone's Executive Chairman and Chief Executive Officer commented ...."We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year. This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq.". Will you guys please just LISTEN to Todd?:

. ON TREND WITH SHAIKAN. (also review the SH-4 results on this side of that fault ..)

. SYNERGIES ACROSS OUR WORLD-CLASS ACREAGE. (check the meaning of 'synergy')

If Todd's shouting, then maybe it's ok for me to pipe up again too.

GLA,

And from Zen,so 80% of 2.4 = 1.92bbo to GKP?


A great result considering this is an 80% interest.

4 zones between 1420m - 1700m.

Bijeel zones were lesser and initially amounted to 2.4 billion bls in place mid case.
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http://www.iraqoilreport.com/politics/oil-policy/turkey-preparing-major-kurdistan-oil-entry-9253/?utm_source=Email+Update+Subscribers&utm_campaign=0986132923-Email_Update&utm_medium=email

Shame the sp isn't rising more .....

All in good time rf, no gas and billions of barrels of lovely black stuff.,.

I'm surprised their's no comment on post3692,

By Patrick Osgood of Iraq Oil Report
Published November 8, 2012

ERBIL - A new Turkish state oil and gas company is negotiating with Iraq's semi-autonomous Kurdistan region to take stakes in several exploration blocks – a development that would signal dramatic headway for the Kurds in their quest for oil sector autonomy.

No contracts have been signed, but four officials familiar with the talks confirmed that negotiations have reached an advanced stage.

The new Turkish company is looking to enter at least five Kurdish exploration blocks, according to the offic...


This will really upset the ICG and could lead to indepedence for the Kurds?

http://www.investorschronicle.co.uk/2012/11/08/shares/news-and-analysis/news-tips-gulf-keystone-balfour-beatty-wm-morrison-rightmove-supergroup-btg-spirent-more-mbkceAcdP1OG4b9m31tmiP/article.html

The second half of the WHI Note gives some more exciting developments which will get our hearts ticking IMHO....

· We anticipate further positive news from Akri Bijeel where Gulak-1 and Bakrman-1
exploration results are due by the end of 2012. We believe that, following a period of
significant underperformance in the stock due to the ongoing legal case with Excalibur
in the London courts, this exploration find provides a unique entry point for investors to
leverage on this weakness.

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Gulf Keystone Petroleum confirms new discovery
By Darshini Shah | Thu, 08/11/2012 - 09:32

Gulf Keystone Petroleum (GKP) has made a new discovery in the Sheikh Adi Block in the Kurdistan Region of Iraq.

The Sheikh Adi-2 exploration well on the block has achieved aggregate flow rates of 4,235 barrels of oil per day across four reservoir zones at measured depths of between 1,420 metres and 1,700 metres – the Upper Butmah, Adaiyah, Mus and Sargelu formations in the Jurassic. The well is located immediately to the west of the Company's Shaikan Block, which is a major commercial discovery

The well was spudded in May 2012, 1.45 kilometres to the north of the Sheikh Adi-1 exploration well, and was drilled to a total depth of 2,754 metres in September 2012.

Gulf Keystone, the operator of the Sheikh Adi Block, will now submit a discovery report to the Sheikh Adi Block management committee within 30 days. It has an 80% working interest in the block, while the Kurdistan Regional Government holds the remaining 20%.

"We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year," commented executive chairman and chief executive Todd F. Kozel.

"This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq."
Analyst view

Analysts at FoxDavies said the news that Sheikh Adi-2 had flowed oil to the surface was a “boon” for the development of the region: "Given the minimal separation between the Sheikh Adi location and the nearest collection hub for Shaikan, we believe that this will be brought on-stream quickly alongside Shaikan.

"Given the success of Sheikh Adi-1, we had largely de-risked the reserves associated with this accumulation and had already factored that the production would flow via the existing Shaikan infrastructure and would most likely be charged tariff or transmission cost opposed to having to invest in a separate production infrastructure."

They reiterated their ‘buy’ recommendation and 350p price target.
· Gulf Keystone remains one of our top picks in the sector given its ongoing exploration
success in Kurdistan, its low $/bbls valuation relative to similar peers, and takeout
potential which we see increasing following resolution of the Excalibur case. We
maintain our BUY recommendation and target price of 315p, and see a takeout value
using similar multiples to Genel/Vallares deal at 450p.

Surveillance ahead of Israeli strike on Iran in Q1 2013......... would make the whole middle east a big "avoid" zone.

http://www.foxbusiness.com/markets/2012/11/08/oil-markets-shrug-off-iranian-drone-attackfor-now/

pro must be bored, he has nothing to ramp atm.

A very dramatic day indeed in Court. Rex Wempen was hammered by the GKP barrister from the first ball, and it continued all through to close-of-play. There were around six quite significant interventions by the Judge, seeking to get Excalibur to answer questions or make their answers clear etc. I have 25 pages of A4 notes...on top of the 39 pages from yesterday...I am really not at all sure quite what to do with the content.

After lunch, the Clifford Chance team of two (sitting behind their remarkably silent barrister and his junior) was reduced to just one.

What seems, to me, to be happening is that after so many days of relentless cross examination, all sorts of apparent inconsistencies are appearing between Excalibur's written and verbal evidence, and between Excalibur's current and earlier verbal evidence.

All kinds of serious allegations and comments etc. were made today...imo it is starting to show signs of getting *very* ugly indeed.

Quite what the Excalibur barrister, Clifford Chance, and the Funder, think about the situation I do not know. But in my personal judgement, I would be surprised if they were happy with things. Just my opinion.

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: OK, from the very close-of play, in order to avoid any selectivity. With some paraphrasing.

GKP barrister: "You said 'Thank you for the offer of the Interest Free Loan while our investment team is involved in closing funding'"

He repeated it: "'While our investment team is closing funding'. Will you put your hand on your heart and confirm whether this is truthful, or not?"

The Judge then repeated the question

Rex Wempen: "It is incorrectly written. It talks about our fundraising plan"

GKP barrister: "Don't you see the difference? Here you are, saying to Mr. Kozel 'While our investment team is closing funding'"

Rex Wempen: "Mr Kozel knew (bob: about Excalibur's funding position)"

Judge: "If he knew it quite well, why did you use this wording which is incorrect?"

Rex Wempen: "I don't know why I used the wording"

(my previous caveats apply. the above is given in good faith and is taken directly from my manuscript notes of today, p.25 and p.26)

Note for clarification: the reference to the "Interest-free loan" was Rex Wempen taking seriously a joke which Todd Kozel had made, about providing Excalibur with an interest-free loan if they couldn't find the money for the PSC signature bonus etc. Rex Wempen had earlier today admitted that it was a joke by Todd Kozel but prima facie he took it seriously for a few days and wrote the above.

http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3AGKP.L&it=le&action=detail&id=10170315

http://www.straitstimes.com/breaking-news/world/story/iraq-cancels-52b-russia-arms-deal-over-graft-concerns-20121110

http://www.bbc.co.uk/news/business-20265130

http://www.upi.com/Business_News/Energy-Resources/2012/11/09/Iraq-Exxon-pulls-out-Russia-wants-in/UPI-81141352487577/