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.

Reuters update FYI


http://www.reuters.com/article/2013/07/21/gulfkeystone-directors-idUSL6N0FR09H20130721



Gulf Keystone moves to end spat with shareholders


LONDON, July 21 | Sun Jul 21, 2013 7:25am EDT
(Reuters) - Oil exploration company Gulf Keystone Petroleum has withdrawn its opposition to four directors proposed by shareholder M&G Recovery Fund, ending a row with its biggest investors over corporate governance.

Gulf Keystone said in a statement late on Saturday that it had reached a "constructive agreement" with shareholders regarding the shape of its board.

Meanwhile, M&G Recovery Fund, holding 5.1 percent of the company, and Capital Research Global Investors, with 5.6 percent, will back the appointment of former Glencore chairman Simon Murray as non-executive chairman, the firm said.

"I am pleased that unity of purpose has been restored," Murray said. "... We can now return our focus to the important objective of creating value for all shareholders and continue to deliver operational success."

Gulf Keystone, which is focused on oil fields in the Kurdistan region of Iraq, this month appointed Murray to head the board, splitting the chairman and chief executive roles to improve governance.

M&G, the fund management division of insurer Prudential , had proposed candidates Philip Dimmock, John Bell, Thomas Shull and Jeremy Asher after criticising governance and "excessive" executive pay at the company.

Gulf Keystone said its board would recommend that shareholders vote against M&G's choices, arguing that they lacked a "consistent track record of successful operation and commercial experience".

The firm has been beset by difficulties, including Kurdistan's long-running dispute with the central government of Iraq over payments for oil, and a legal challenge to the ownership of the company's oil fields.

assuming the court case is successfully resolved (from GKP's point of view!), then with the strengthening of the board with TK's greed being brought under control, i would be quite surprised if GKP were to remain independent for long

Uncinfirmed but if so would allow real progress in the O&G Law,a real thorn inthe side preventing progress,which has held back the development of Iraq and so the improvement to the ordinary persons standard of living? imho



2013-07-20





The future of Iraq / special A source close to Prime Minister Nuri al-Maliki that the Deputy Prime Minister for Energy Hussain al-Shahristani has decided to resign from his position, stressing that evacuate his place in the Eid al-Fitr. Noted the source, who declined to be identified, that the resignation of al-Shahristani has in accordance with the Prime Minister, pointing out that the latter before resigning orally prior to submission. confirmed that al-Maliki would accept the resignation, and will end Shahristani services in the Eid al-Fitr.

http://nenosplace.forumotion.com/n10945-shahristani-resign-maliki-accepted

Big move today I see : - GKP up 2.8% to 177.75

So all those people who claimed Corporate Governance was the reason for our undervaluation, were, as some of us knew, telling porkies.

Clearly we are range bound until the Court Case judgement is in and a settling of "Ownership" is finalised.

http://www.guardian.co.uk/business/nils-pratley-on-finance/2013/jul/22/gulf-keystone-boardroom-non-executive-directors?CMP=twt_fd

omce - it is certainly an issue of significance whatever you may think - or not, as the case may be

It's irrelevant to why the share price is so low. And is merely a smokescreen for the real reason M&G made it's move. You recall they said it was all about Corporate Governance right?

It's all about the Court Case - without clear title there'll be no bid premium for starters as no major will contemplate a bid until ownership is determined. It's really that simple.

i can't work out whether you're total lack of logical process and sequence is a result of over-indulgence or innate

If you don't think the question of ownership is by far the most important concern then you're the one who's reasoning is in question.

As to the rest of your diatribe, not worth replying to particularly as it doesn't make sense other than you're attempting to be rude without obviously being so.

Ask any CFO which is going to have a more significant impact on the share price - his CEO's $20m bonus or potentially losing a large chunk of his company (decline in asset value!!!) and you'll get the same answer every time.

quite so, but M&G's move is/was no smokescreen or a disguise of their "real reason" as you stated through some nonsense reasoning(??)

If you think M&G's move was motivated by Corporate Governance issues then please explain why -

They were threatening to vote against Simon Murray - the "Independently selected" chairman if they didn't get their way.

They want better Corporate Governance by railroading "Corporate Governance" best practices

Clearly CG was a smokescreen for the real reason.....Rather logical and well reasoned. If you know anything about Corporate governance!!!!

the "real reason" being?

Replacement of Todd - wait for next years AGM when TK is up for re-election.

If we are still around by then that is - which I'd rather we weren't as I don't want to experience the dirty tricks we have seen over the last 10 days for the next 12 months. Certainly don't want a low ball takeover either - I suspect M&G want out, at a decent profit, to cushion their otherwise very poor performing fund. Lower decile over last three years. Gkp stake 1% compared to its Glaxo one of 5%, and witness all the problems there where Dobell's time would be better focused.

You have to ask why all this energy for a company that represents a lousy 1% and why did they link up with Asher, a man with a grudge that has been festering for the last three years.

i'ld certainly not be averse to a t/o at a decent price, but current ownership problems apart, no one is going to take the plunge, or even the city to take the company seriously, while TK has his arm in the till up to the armpit and without a board in place to control him henceforth

btw, surely M&G hold a lot more than 1% of GKP? ..... if it was that low, they could have no influence

But that's the whole point - the current issue of ownership is the SOLE reason no major will take the plunge :) Their own Corporate Governance and legal teams would simply not sign it off as its too risky. It's got bugger all to do with TK taking $30m in options(which vested from hitting performance targets over 3 years(2009-2011)

The City parachuted in its 4 NED's but threatened to vote against an independently selected Chairman. How is this good practice? How will other institutions in the City view M&G's move?

GKP makes up 1% of their fund / Glaxo 5.6% of fund.

Apols if I wasn't absolutely clear I was talking about GKP/Glaxo as percentage of " the under performing low decile Recovery Fund"..

primarily indeed, but nevertheless any predator who is prepapred to pay a "proper" price will be very keen to see a properly run company and not just some cowboy outfit, which it patently is at the moment, notwithstanding that it now sits on some very juicy assets

Could be worthwhile?

http://www.hl.co.uk/shares/bed--and--isa-sipp

I don't think any predator will be concerned at CG issues sucha s board pay myself. They'll probably only keep on the key operational personnel(eg John Gertsenlauer) with management replaced by their own men. TK is clearly a "driving force and strong personality" - once he's proved up the Oil, and banked the reserves why keep him on when you start taking the stuff out of the ground....

It certainly isn't a cowboy outfit which you claim it is at the moment. For 4 years and Capex of $780m they have drilled 19 wells. not a SINGLE DUSTER. Unheard of. COS of 90% on nearly each well. Incredible. 19billion OIP booked.

Compare that to Kashagan, of slightly larger size. $15bn spend, over 10 years plus, all the Major Oil companies involved.No sign of production despite massive overruns.

Compare and contrast that to the 4 astonishing years of this small minnow!

How is it a cowboy outfit? Operational it is far more successful than most majors. Lets of a geographical spread to manage I agree, but still.

i'll rephrase it then ..... it's run by a bunch of cowboys!

I don't think John Gerstenlauer is a cowboy. Do you?
Would agree TK is a bit of an extrovert, but then so are other CEO's - eg Buckingham at Heritage Oil. You need these type of people for the regions they're operating in.The swashbuckling mentality, nothing wrong with that in my book.

Oooh look, another well P&A'd today..

PMO - exploration well in East Vietnam

This come hot on heels of:

NOP and Tullow earlier this morning.

GKP - 19 wells drilled. 100% success rate. An organisation run by cowboys, like NOP, wouldn't have such a high success rate.