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.

Part of Iraq report:

Published November 13, 2012
ExxonMobil has told Iraq's top oil official that the company is actively seeking to sell its stake in the super-giant West Qurna 1 oil field.

In a recent meeting with Deputy Prime Minister for Energy Hussain al-Shahristani, an Exxon executive said the company "wishes to withdraw from the West Qurna field," according to Shahristani's spokesman Faisal Abdullah.

Although reports have long been circulating that the American oil giant is in talks with prospective buyers – and recently sent ...

The GKP barrister is getting increasingly irritated by Rex Wempen and he is now showing it. The barrister's approach is to clinically dissect Excalibur's claims and seek to prove they they are groundless...but the problem is that Rex Wempen's overarching position is that Excalibur is "in the right" and that NOTHING can disprove that.

We are, in effect, now in the realms of philosophy. If one has an established framework of logical and definitions, one can prove and disprove various arguments. But if words have fluid meanings, and what is said one day can be replaced with something different that one says the next day (or even ten minutes later) then what is the basis for any meaningful discussion? There cannot be one...except that an external party - in this case, the Judge - must "go above and beyond" such fluidity and act as a sort of referee.

I do not now believe that ANY argument by the GKP (or TKI) barrister will EVER be likely to box Rex Wempen into a corner. It is possible that Eric Wempen may prove easier to deal with. But I wouldn't count on that. On current evidence, I think that only the Judge will be able to make sense of what has been - frankly - a pantomime.

It is too tiresome to give details of my 22 pages of A4 notes from today. I have given some quite detailed debriefings to selected people this evening.

I shall, however, give one example. The GKP barrister referred to an email from John Cooper, the previous CFO at Gulf Keystone Petroleum, to Ian Patrick on 14 November 2007, copied to Mr Makatich and Todd Kozel. This concerned Eric Wempen, and in abbreviated form said something like "Last night, I took the liberty of checking out Eric Wempen as far as I could...he is a tax attorney...I think we need to find out in what capacity UBS are acting for Excalibur". The GKP barrister said: "Mr. Cooper was beginning to smell a rat, wasn't he?"

Of course, Rex Wempen replied "No. No rat at all here. Mr. Cooper was confused, he doesn't understand the Collaboration Agreement between Excalibur and Gulf"

And there we have it.

(usual caveats apply)

of more interest will be to see how incisive and clever the EXC barrister is ...... when does that act start?

1stly their's Eric to question,followed by the TKI barrister,so may end of mobth??


From MOL report courtesy of akteirman on 3

In Kurdistani Region of Iraq:
- In Block Akri-Bijeel drilling of Bakrman-1 exploration well continued. Drilling of Gulak-1 exploration well was started in July. Tests of the exploration wells are expected on the yearturn. Surface facility for early production from Bijeel-1 well is under construction, the start-up is expected in Q2 2013.
- In Block Shaikan testing of Shaikan-6 appraisal well continued while drilling of Shaikan-8 well started end of August. Upgrade is being designed for extended well test facility.

Aqra-1.
Drilling started on 17 January 2012, f inal depth was reached at 4 980 m in August.
Testing is ongoing.

Bakman-1.
Bakrman-1 well was spud on 7th of May 2012, actual depth was 3 930 m at end of
September.

Gulak-1.
Gulak-1 well was spud on 15 July 2012, actual depth was 2 404 m at end of
September.

http://ir.mol.hu/sites/default/files/en/2012/Q3/2012_Q3_FlashReport_ENG_PKB.pdf

barristers are having a field day then ..... that'll be a very happy bunch of lawyers at christmas, being EASILY able to afford 2 week holidays in the west indies with their extended families

Seems the reason for such a lengthy case is,that as a civil action one is not made to answer the question,as in a criminal trial.RW is aware of this,so no answer or evasion is better than the wrong answer?imo

that as may be, but the burden of proof in a civil action is much less onerous - i.e. probability rather than beyond reasonable doubt

As a holder of GKP(although reduced in size)i clearly would like to see this action thrown out of court.It does not look likely to happen,so worth taking a worst case scenario.Assume 1 billion shares(all options)in issue,this would have to increase to 1.43 billion to make up the 30%(making a SP of £1.26p).
So once the CC is out of the way,what could we expect if a bid was to take place,well it works out at 70p for every £1 billion. Take the £8billion mentioned=£5.60p,even a paltry £3b would give a return of 15% at todays SP.Get in at what would be a knee jerk market reaction to such a result (126p)and malking 150%(over 400% for £8b)?.
So patience required?

I have been attempting to put my thoughts together on what I heard over the last few days....These are my jottings, impressions and opinions only...These comments below are not in strict order or verbatum...- I havn`t put most of RW replies because he just rambles and basically disagrees with everything anyway.

Simply from what I`ve heard so far my impression is that RW was way way out of his depth, didn`t properly understand the significance of various agreements or indeed the differences- IE(NDA, CA, JOA etc)- Initially probably thought he could raise money quickly but was ignorant of E+P and big business ways... Bigged up who EXC were- Mislead banks and indeed TK. Mislead TK when RW and EW started to realise they couldn`t raise money - indeed started blaming others, inc TK for EXC short comings.. ...King`s clothing parable comes to mind....Gulf was not a hindrance, quite the opposite they wanted Exc `s investment.....And it probably took a while for some at Gulf and at the banks to realise who these folk really were....That they had no money, didn`t have the ability to raise money and no clear idea... Chancers!

JG "..the person that was up to something was you"

JG "...Have you discussed your evidence with EW or taken counsel over the weekend?"

JG "..This was the final brush off from lazard"

RW "..Had received 24% interest in Shaikan".....JG ..."Simply not true...indirect interest hadn`t happened yet"

JG " Litigation funding with prime, they didn`t think you had a very good claim..."

JG "You had no prroblem with the NDA until you realised how long it was going to take to get funding?"

JG email EW to RW...."no problem with NDA..."....long rambling contradictory answer!!

JG .." you had to pay SB by 6th Dec....bothering and putting pressure on Miss McLeod.....RW..." Certainly I was a pest"

JG "What outside counsel was EW talking to? Misleading"

JG talking about witness statement and NDAs" reavealing your ignorance here"...RW disagrees with TK, MR Wilkinson(expert witness),, Mr Kinnear and 4th person if you count Shell man

JG " continuing to mislead TK with the term `investors` "

JG.." why unwilling to provide further info to MOL on EXC- re accounts, shareholders etc

JG email from Mr Cod..."Have to pay on time , it is inexplicable that you or anyone could be on a PSC and pay later...? Do you agrree..."

RW..."I agree some of it"

JG " Mr Cooper beggining to smell a rat"

JG " You do understand what I mean by the bottom of the page" " Stop wasting time"

JG " No fund raising experience, only introduction or originator experience".

JG " strategy to sue Gulf and blame G for delays when it was Exc that couldnt raise money"

Judge: "..you need to understand my puzzlement first...."

What a great line to finish!!

------------------------------------------------------------------------------------Esco.
V interesting comment from Prime suspect.
'Considered a weak case.' If this is just a snippet no wonder they wouldn't want to disclose stuff to TKI Stateside. Protecting an affiliate perhaps, or one of their own backers.
-----------------------------------------------------------

Esco: it was obtained in connection with TKI's actions in the US to get materials out of Robert Gordon. I have more notes on this, but they are in the Court...I'm in the wine bar. I'll go through my notes later. Rex Wempen has said that money WAS subsequently paid by someone (we knew that anyway) but it remains unclear who it is. The GKP barrister knows who it is. A very damaging (to Excalibur) Eric Wempen email is being discussed, we'll go back to it after lunch. Great blocks of it have been blanked-out by Clifford Chance, it was on the screen next to me. bob

http://www.reuters.com/article/2012/11/14/iraq-oil-exxon-idUSL5E8MDC3820121114

More trouble for the rebellious Kurds and the "illegal" licenses.......

Heritage Oil exits Kurdistan.
City AM .Tues.
Heritage is selling its 49pc in the Miran Field to Genel,
Genel will then have 100pc in the gas field.

Also
San Leon and Aurelian agree an all share merger.
They will become the largest foreign company in Poland
and also have interests in Morocco and Albania.

http://www.reuters.com/video/2012/11/14/iraqs-shahristani-on-oil-market-producti?videoId=239129983&videoChannel=1

from iii

20:06
Re: MOL Presentation
Kandymans1
8
Barkman very promising,
Heavy oil on the shakers, and testing Triassic, lighter oil. Fractured also.
Looks like discovery to me.
Close to shaikan, on trend with atrush.

One big sea of oil imo.

Gulak like beckhme and bejeel, more oil.

A good methinks.
No wonder Todd held onto bejeel

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



Akri Bijeel - New MOL presentation


"Bakrman-1 well with very promising shows – on
trend with Atrush discovery

Two other wells under drilling-testing: Bijell-3 and
Gulak-1"

Gulak should be very close to the expected TD of 3658m --- 1-2 weeks.

MOL seem to be much more open now they've accelerated their programme.
Very helpful.

Having attended the court twice I reckon it is going pretty well for GKP. A brief summary but only my own thoughts. I did not take any notes. I am no expert and it is difficult sometimes to hear. Just when something interesting is about to be said someone coughs. ....mmmm....In summary Excalibur, basically had no money. Could not raise finance with any of the people they approached because they had no written "title" to their claim of 30%?? nor were they mentioned in the PSC.(Production Services Contract) ( You cannot get a "Title" unless you put up some money) No evidence with any document, nor any attempt it appears by Excalibur to confirm in writing their frustration at having no "Title" ... Strange. Emails between Rex and Eric very dubious and questionable.They tried to get Prime to farm-in but according to Excalibur, the terms were "rediculous" and it was not pursued. I wonder why ? More on that to come during next week. Always evasive, and sometimes long winded replies to the QC questions. We shall see how it all transpires. Court closed till Tuesday 10:00 hrs. Two more days to cross examine Rex, if he answers quickly, then Eric, possibly two days? Court will be closed for "Thanksgiving" GKP team will be next for cross examination. If progress is slow the court may sit on a Friday according to the judge.
Todd was in court today and the RR (TK 69) parked outside at 16:30 hrs.
Long and Strong.

Taken from another board.

Went to court today. Totally fascinating and feel more comfortable with my investment than ever. I do think that the Wempens probably did have a case for partnership back in 2007 but it is very clear from the evidence i saw today and previous notes from our resident scribe (BBB5) that they didnt have any funding in place or any chance of any funding. at least, not until Prime turned up!

From the emails and Rex's comments, they were desperate to try and resurrect any part of the deal come the end of 2007 that they would have accepted anything!

I strongly believe that the true question is - would any funding they now have been available to Excalibur before GKP struck oil? the answer to that would simplify this case somewhat and i presume that our defence will be asking that at some time.

I can say that Rex appears to be frustrating both our defence and the judge with his slow uptake and seeming lack of understanding on the questions being asked but i dont think he is anywhere near as stupid as he makes out.

all above are my own musings and i am trying to be as objective as possible.

-------------------------------------------------------------------------------
This was one of the exchanges reported by HairyCapers on iii:

JG: Hypothetically would UBS take on Excalibur if one of the partners had been to prison for fraud, or serial money laundering?
Rex: If the deal is good enough

Does anyone know if Rex has a record?

http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3AGKP.L&it=le&action=detail&id=10189709

Mol presentation. Mol saying Shaikan reserve booking possibly before year end? MOL usually very slow to give info!
Shaikan.
COMMERCIALITY DECLARED
Development program due by February
Successful discovery and completion of five well appraisal program, crude from 16 to 52 API
Declaration of Commerciality submitted in August 2012
Possible reserve booking already in FY 2012
EPF in operation since 2010, capacity increasing ongoing to gross 40 thboepd
http://ir.mol.hu/sites/default/files/hu/2012/MOL_IR_DAY_2012_NOVEMBER_15.pdf

basment1

PAGE 53 of MOL Presentation.

http://ir.mol.hu/sites/default/files/hu/2012/MOL_IR_DAY_2012_NOVEMBER_15.pdf

Mentions:

Fresh (karstic) water in Jurassic reservoirs;
increasing salinity brine in Triassic reservoirs, water
drive possible

And:

BBBS from 2010:

"The big picture in terms of regional aquifer is now being postulated as far as Akri Bijeel. So we now have data points left (JK) and right (AB) of Shaikan that supports Shaikan's Jurassic OWC. When/if the OWC is proven to apply in Shaikan - the OIP will immediately approach the P1 figure. Now of course, it can only be proven for sure, when pressure data from both the oil and water legs are measured in the same well - i.e. the well would need to actually penetrate the OWC. SH-2 will tell us more. But, MAYBE, Hunt's Simrit well has already answered the question. It is certainly located at about the right place to do


">

http://gkpinvestor.proboards.com/index.cgi?action=display&board=analysis&thread=1645&page=1#ixzz2CNQrYkry