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.

A small piece in The Observer on the Businee pages.

People
"A good week for Todd Kozel, chief executive of Gulf Keystone Petroleum. After a three-year court battle, the company saw off a claim for 30% of its oilfield assets in Kurdistan by Excalibur Ventures, a US business run by an ex-special- forces' soldier. Gulf, worth nearly £2bn, is preparing to move from Aim to the main market, but could now be snapped up by an oil major."

Wrong of course on the amount of the assets at stake but telling more people about a possible takeover will do no harm to long term holders like myself. Have held through thick and thin since 2009 and added along the way.

http://www.moneyam.com/action/news/showArticle?id=4668541

Just 2 days trading to go before the 1/2 yearly results,looking for production figures,OIP,drilling progress and possibly news on how the sale of AB is going for starters? It'll be interesting to see how the SP fares,could very well climb pre results,with last minute traders looking for a quick profit?

From the LSE board.

08.45Today 06:05Todd kozel is on CNBC at quarter to nine. Must be good news!

http://www.investegate.co.uk/gulf-keystone-petrol--gkp-/rns/half-yearly-report/201309190700093684O/

Production now at 12400bopd,will certainly help the bank balence,no indication what they got for it though?

CEO
"As a result of having the Shaikan FDP approved, and in line with the Kurdistan Regional Government's stated production targets for the Shaikan discovery, we are delighted to have entered the first phase of commercial production, which was eagerly awaited by the Company's shareholders. It is an important milestone and another highlight of the four years of hard work since striking oil in August 2009. With the protracted Excalibur litigation behind us and the key uncertainty about the Company's future removed, we are working hard to deliver on all of our stated objectives and are very pleased to have appointed Deutsche Bank to advise the Company on achieving our goal to move to the Main Market by the end of 2013."

ion of 183,000 barrels as at 1 September 2013, at which point production had increased to 12,400 bopd.

Production from the Shaikan PF-1 was temporarily suspended on 4 September 2013 at the request of the competent authority for reasons not connected with the Company. The Company, following dialogue with the competent authority, believes that production is to resume shortly. Once the work on the flowlines to the Shaikan-4 well has been completed, the Company will reach the stated production target of 20,000 bopd. Shaikan-4 is the third producing well, which will be tied to the Shaikan PF-1 and the work on 8km of the connecting flowlines is expected to be completed in October 2013.

The presentation to analysts will be available on the Company's website at www.gulfkeystone.com from 10.00 a.m. (UK time) today 19 September 2013.

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Westhouse Securities comment today:
"“For GKP we are mainly concerned with cash G&A costs, interest payments and the net debt position.

“GKP reported:
Loss after tax of $26.4mm (vs WH estimate of $25mm)
G&A costs of $19.3 mm, of which cash costs amount to c. $14mm (vs WH estimate of $15mm)
Interest payment of $11.2mm (vs WH estimate of $8.9mm
Cash & cash equivalents of $141.2mm; net debt of c.$77 mm (vs WH estimate of $130mm cash and $113mm net debt)

Operations:
“PF1 and 2 update:
Production achieved from PF1 of 12,400 b/d by early September
Construction of PF-2, capable of producing 20,000 b/d, is ongoing; its mechanical completion expected in October 2013, followed by production operations by the end of 2013. Drilling on Shaikan-10 and Shaikan-7 is ongoing. Sale process of Akri Bijeel interest continues

“OUR VIEW: Results are in line with our estimates. The fact that PF1 is at 12,400 b/d is a slight positive but with PF2 completed in Oct/13 we think it is unlikely that the promised 40kb/d by year end will be reached in time. Drilling on Shaikan-10 and Shaikan-7 is still ongoing and no news on the sale of Akri-Bijeel. We maintain our view on GKP with a 170p/share target price and a Sell rating.”

Gulf Keystone Petroleum: Takeover debate dominates whilst Shaikan begins commercial production
By Jamie Ashcroft September 19 2013, 8:47am

[...]

Commercial production by early September was in the order of 12,400 barrels of oil per day, GKP revealed.Commercial production by early September was in the order of 12,400 barrels of oil per day, GKP revealed.

Gulf Keystone Petroleum’s (LON:GKP) court success last week has largely meant that today’s interim results statement is something of a side-show.

Wining the long running legal battle has, from the investor’s perspective at least, put the currently AIM quoted firm in the frame for a takeover - the legal claim for up to 30% of the group’s assets had previously been seen as a deterrent.

Since the win, last Tuesday, GKP shares have risen 13% to trade at 205p today – but, the heavily traded stock has changed hands as high as 245p since the ruling.

The speculation has been rife. Nevertheless, the group has also reaffirmed its plans to move up on the main market of the London Stock Exchange.

And with today’s results statement the company has confirmed it is now in commercial production.

‘Test’ production has been underway at GKP’s Shaikan field for some time and the group is now upgrading facilities so that rates can be increased.
In the six months, to June 30, GKP produced an aggregate of 183,000 barrels of oil, of which 179,063 barrels were sold into the domestic market.

Commercial production by early September was in the order of 12,400 barrels of oil per day, GKP revealed.

Further upgrades to the field’s infrastructure will see the installation of a second production facility, which will be capable of lifting output to around 40,000 barrels per day. The facility is expected to be complete in October.
Exploration, appraisal and development drilling continues across the portfolio as well.

In a stock market statement chief executive Todd Kozel said the start of commercial production was an important milestone and the company is now working hard to deliver on its stated objectives.

Elsewhere, Kozel attempted to talk down some of the speculation concerning possible M&A activity.

Speaking on CNBC this morning Kozel stressed the company’s focus was on its operations rather than looking for a takeover.

That said, Kozel did not deny there would be interest in the company or that the interest would be dismissed outright. “We’ll answer the phone, we’ll open the mail but it is not something we are focussing on,” he said.
He denied the company was talking with Sinopec or other majors about possible deals, but left the door open saying “if it [a takeover offer] comes along, it comes along.”
[...]


[...]

http://gkpinvestor.proboards.com/thread/2264/19-sep-2013-press-response

Bought back 1 DEC future at 206.16

Bought back 1 DEC future at 196.64

Kozel did not impress too many imponderables.

A stark contrast to his performance at the investors presentation.

http://video.cnbc.com/gallery/?video=3000200692&play=1

http://www.reuters.com/article/2013/09/19/gulfkeystone-idUSL5N0HF0SU20130919?rpc=401&feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=401


Somehow i can't see no contact with majors,with AB sale in the offering?

http://www.investegate.co.uk/gulf-keystone-petrol--gkp-/rns/director-s-dealing/201309200700094829O/


Gulf Keystone announces that it received notification on 19 September 2013 that on 19 September 2013 Mr John Bell, a Non-Executive Director of the Company, purchased 72,200 common shares at a price of 201 pence per share.

The following is very much how i see it?

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

Malcolm Graham Wood

----------

Gulf Keystone Petroleum

In what was meant to be a dull set of results, GKP managed to deliver everything as expected, however one or two things have left the market feeling that for the very short term at least, pressures are likely to be downwards.

A temporary shut-in of production was an initial worry although the company did go to some lengths to say that flow would resume ‘very shortly’. Another worry from some maybe shorter-sighted analysts is how the CPR is going to look when it is published alongside the documentation for the full listing. With the geology of Shaikan as it is there is a feeling from those more bearish that there will be more possible than probable or even proven in the report.

Finally the CFO was not going to be drawn on a 2014 capex budget, merely saying that expenditure would not exceed revenues and that although he might raise debt, equity is not an option.

Taking a look at the chart, the fall today is probably also reflecting the extent of the bull-run that the shares have been in since May and including the court case victory recently. I can’t see that this set of figures is going to shake out any devout followers and whilst traders may desert the ship short-term my feel is that they will return. With a target price of 480p our long term buy recommendation remains intact despite interim concerns and with production picking up and the full listing on the horizon the future is still very much intact.