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.

Iraqi Kurds Pump Oil to Turkey Amid Fears of New Clash
Posted 2013-12-20 01:39 GMT
ERBIL, Iraq (UPI) -- Iraq's semiautonomous Kurdish enclave has reportedly started pumping oil direct to neighboring Turkey via a new pipeline even though Baghdad has not approved the landmark deal between the Kurds and Ankara, raising concerns of a new clash with Baghdad.

But the Financial Times said Baghdad is expected to endorse the pipeline deal in negotiations now under way with the Kurdistan Regional Government in Erbil and the Turkish government, a project that will have important geopolitical consequences for the region.

The Iraq Oil Report, a website that monitors Iraq's energy industry, reported the oil flow which began a week ago is primarily to test the pipeline. But it stressed this is "a significant step toward Kurdistan's first independent pipeline exports."

The Financial Times said Iraqi Prime Minister Nouri al-Maliki's government will likely secure 83 percent of revenues generated by KRG exports with the Kurds getting 17 percent, a split Baghdad has apparently endorsed.

The Kurds' share may seem risible but the KRG can expect to earn billions of dollars in revenue from the oil and gas exports to Turkey that are likely to follow, along with significant investment that will provide a strong economic base for a future independent state.

Maliki fears once Kurdistan establishes a firm economic base, the Kurds will declare independence, which would in turn encourage other restive regions to break away from Baghdad's control.

Baghdad's worst nightmare is that south Iraq, where more than 60 percent of Iraq's oil reserves of 144 billion barrels is located, would seek greater autonomy, critically weakening central government

The new pipeline will have the capacity to carry 1 million barrels per day to world markets via Turkey's Mediterranean terminal at Ceyhan. The initial Kurdish target is about 300,000 bpd. A second oil line is planned.

Kurdistan contains oil reserves estimated at 45 billion barrels, about the volume Britain has pumped from the North Sea since the 1970s, plus gas reserves of around 110 trillion cubic feet. Iraq's overall oil reserves, including those in Kurdistan, total 144 billion barrels.

Erbil, despite Baghdad's protestations, has signed exploration and production deals with several major oil companies, including U.S. oil companies Exxon Mobil and Chevron Corp., Gazprom Neft of Russia and Total of France.

But the new pipeline will be used to carry oil from fields operated Anglo-Turkish Genel Energy, based in Ankara and headed by former BP chief Tony Hayward, and Norway's DNO, which pioneered drilling in Kurdistan.

Genel recently listed its gas reserves in the Miran and Bina Bawi fields at 8 trillion to 18 trillion cubic feet, double earlier estimates.

Eventually, Kurdistan could be exporting 353 billion cubic feet of gas a year to Turkey through the emerging pipeline network.

There's been a lot of confusion of late regarding the $500 million pipeline operation, the first component of a network envisioned by Turkey and the KRG, and whether it would ever get under way because of Baghdad's insistence it has sole authority on energy issues.

Turkey and Erbil reportedly signed a multi-billion-dollar pipeline agreement in November, but few details have yet emerged.

The Financial Times said that the Turks have sought to downplay the significance of the new oil flow, with Energy Minister Taner Yildiz, a key figure in the pipeline plan, describing the pumping as "a test flow ... the testing will continue for a while."

"Ankara, the KRG and energy groups active in Northern Iraq have long argued that the emerging infrastructure will ultimately lead Baghdad to accede to the network of deals concerning the oil and gas that will flow into the new pipelines," said analyst Daniel Dombey, based in Istanbul.

Baghdad and the KRG have feuded bitterly for years over the Kurds' plans to independently export their oil and gas to Turkey, which is driving to become the most important energy hub between Europe and the oil and gas riches of Russia, Central Asia and the Middle East.

Turkey has no energy resources of its own, so it is seeking deals that will guarantee it supplies of oil and gas.

Also under discussion is an underwater pipeline across the eastern Mediterranean from Israel's offshore gas fields despite the current strain between the two countries, underlining the centrality of energy in Ankara's strategic policies.

Hope this is not anther false dawn?
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Baghdad-Erbil reach agreement over Kurdistan oil export

Sunday, December 29, 2013

Hussein al-Shahristani, the deputy prime minister in charge of energy-related issues, has announced that agreements have been made with the Kurdish delegations regarding the export of Kurdistan Region oil according to the Iraqi oil export regulations.

A press release from the office of al-Shahristani stated “Hussein al-Shahristani has met with Kurdish delegations led by the Kurdish Prime Minister Nechirvan Barzani and discussed the issues of Kurdistan oil export. Both parties have reached agreements over the export of Kurdistan oil through the SOMO Oil Company according to the Iraqi oil export regulations with the terms and income being integrated into the general Iraqi annual income,” according to the statement.

The Kurdish Prime Minister Nechirvan Barzani arrived in Baghdad on December 25 and met with the Iraqi Prime Minister Nuri al-Maliki and fellow Iraqi senior officials.

Both governments have been engaged in a series of prolonged disputes and conflicts over the export of Kurdistan oil to Turkey and the oil contracts carried out by the Kurdistan Regional Government with foreign companies for oil explorations in the Iraqi Kurdistan Region.

Read more:

hxxp://kirkuknow.com/english/index.php/2013/12/baghdad-erbil-reach-agreement-over-kurdistan

http://uk.reuters.com/article/2013/12/31/kurdistan-oil-shaikan-idUKL6N0KA1M720131231

http://www.cnbc.com/id/101303276

Iraqi Kurds export first heavy oil to global market
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Published: Tuesday, 31 Dec 2013 | 8:43 AM ET
By: Julia Payne



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* KRG sells first cargo of Shaikan heavy crude

* Gulf Keystone operates Shaikan oilfield

* Taq Taq oil going into new pipeline for exports

LONDON, Dec 31 (Reuters) - Iraq's Kurdish region has started exports of heavy crude to world markets, traders and industry sources said, a further step to wrestle more control of its lucrative oil sector from the central government in Baghdad.

Trucked through Turkey to a waiting tanker, the sale of Shaikan crude comes just ahead of planned exports of light crude Taq Taq via a new pipeline.

The Kurdish Regional Government (KRG) began selling its oil independently of Baghdad in 2012, first with very light oil condensate, followed by Taq Taq, produced by London-listed oil company Genel.

These exports enraged Baghdad, which considers them smuggling as selling oil falls is handled by under the purview of Iraq's State Oil Marketing Organization (SOMO).

Talks are underway between Iraq and the Kurds to find an agreement over oil exports and revenue sharing, after Arbil and Ankara signed a multi-billion dollar energy package at the end of November, including gas pipelines and exploration deals. Iraq's oil minister said Baghdad would retain control over the oil revenues.

But despite Baghdad's threats of legal action against potential buyers over the last year, the KRG has moved ahead with exporting Shaikan, the first international exports for AIM-listed Gulf Keystone in Kurdistan.

Trading company Powertrans, an intermediary used by the KRG to export its oil from Turkey, has sold a 30,000 tonne cargo of Shaikan loading Jan 6-10, trading sources familiar with the matter said.

The cargo will load at the Delta Rubis terminal at Dortyol on Turkey's bay of Iskenderun, one of the sources said.

Details of the ultimate buyer were unclear as a trader was re-offering the grade.

The Shaikan oilfield is operated by Gulf Keystone, with Hungarian MOL holding a 20 percent interest. Commercial production began in July 2013 with an initial capacity of 10,000 barrels per day (bpd) and output is expected to reach 40,000 bpd in early 2014.

Gulf Keystone was not immediately able to provide a comment to Reuters after several enquiries.

Taq Taq crude is being tested in a newly completed pipeline that links Kurdish oilfields to the Turkish border and then into an existing pipeline already exporting Kirkuk crude for state marketer SOMO to the port of Ceyhan.

The oil successfully reached the Turkish port of Ceyhan for the first time

http://www.spreadbetmagazine.com/four-new-year-stock-ideas/

Annual Trading Forecast on Gulf Keystone (2014)

By Azeez Mustapha

PUBLISHED: 02 Jan 2014 @ 06:18 | Comments (0) | More info about Azeez Mustapha


Gulf Keystone shares (LSE:GKP), which have long been in some areas of stabilization, are expected to go seriously upwards this year, at least testing the distribution territory of 240.00 again, and possibly going far above i



The condition in the market shows that the price momentum is low. However, there would soon be a breakout in favor of buyers, for the price has already found a bottom around the accumulation territory of 160.00 and cannot go lower than that. Although the ADX period 14 shows that the trend is weak, the position of the DM+, being above the DM-, testifies that buyers are stronger. At the same time, the MACD (default parameters) has both its histogram and signal line above the zero line. There would be a bullish breakout this year and the price itself may go higher above the aforementioned distribution territory of 240.00. It may reach another distribution territory at 300.00.

Conclusion: The year 2014 will apparently be bullish on Gulf Keystone. I’d like to let investors know that trading is challenging as well as rewarding. If I’d known as a young person what a thrill and satisfaction trading brings; I’m sure I’d have dived into the ocean of trading earlier. There have been mistakes along the way, but I’ve been able to rise up again as I was helped to learn and grow. One message on MT5.com says “Be joyful with your profit, don’t mourn your loss!”

This forecast is ended with the quote below:

“One needs to remember it takes time for the trade to mature, having the discipline to let it ride and resist the urge to take a quick profit.” – John Person

http://www.moneyam.com/action/news/showArticle?id=4736136

"Drilling of the Shaikan-7 deep exploration well is continuing in the Jurassic formation, after the top drive of the Weatherford 319 rig had to be replaced. The well is currently drilling 17 ½" hole below 2,300 metres >in the Butmah reservoir."

Some comments from oilworkers.

-----------------------------------------------------------------------------
re opsgeo ,thats deep for that bit size and thus casing ,could be a master stroke ie more options of drillbit and casing further on . amazed at that
------------------------------------------------------------------------
top drive about 15 - 20 tons in weight??!

http://www.therem.org/gulf-keystone-petroleum-reasons-to-buy-it-in-2014/128451/

Gulf Keystone Petroleum: Reasons to buy it in 2014
sam Jan 8th, 2014 0 Comment
The shares of Gulf Keystone Petroleum which closed at 179.75p on 7th

update the shares are trading at 177.50p which is down by 1.25% as the market proceeds for an end

on 8th January 2014. This 1.67 billion pound AIM-traded company has enthralled investors ever since

announcing a “world-class” discovery in its Shaikan block in 2009.

The last year 2013 has been an exciting year for Gulf Keystone. The company and its partners have

discovered oil in five locations within four of the firm’s exploration blocks. The most recent discovery

was at the Ber Bahr 1 well, which GKP holds a 40% interest in and operates with its partners Genel

Energy and the Kurdistan regional government.

Elsewhere, the company is in the process of driving up production from its 75% holding in the Shaikan oil

field, one of the largest oil and gas developments in the world with a projected 13.7 billion barrels of oil

in place. Gulf Keystone is targeting production of 40,000 barrels of oil per day by the end of this year and

150,000 by 2015.

In addition, the company has several other oil wells under development within Kurdistan, some of which

are expected to yield several billion barrels of oil for the company.

Gulf Keystone also says Excalibur Ventures does not plan to launch an appeal against a Commercial

Court judgment made in September. Excalibur has agreed to an interim payment on account of the

defendants’ costs in the full sum of £17,500,000.

Gulf Keystone made a loss during 2012. However, if the company manages to achieve its production

targets this year, City analysts expect the company to turn a pre-tax profit of £41 million and earnings

per share of 0.51 pence. Additionally, if production targets are met next year, analysts predict earnings

of 13.7 pence per share for 2014.

All these factors clearly indicates that Gulf keystone is following its basics and is moving on a good track

which makes it a obvious choice to buy for 2014.

ntbb
9 Jan'14 - 08:33 - 334319 of 334392 0 0

More oil, there are companys out there drilling out dusters and wasting millions, we just have too much oil


Shaikan-7 will drill into the Triassic and is then expected to penetrate the Permian with a potential to add to already discovered resources, and first results are expected in Q2 2014.

ntbb
9 Jan'14 - 08:33 - 334320 of 334392 0 0

More oil, there are companys out there drilling out dusters and wasting millions, we just have too much oil


Shaikan-7 will drill into the Triassic and is then expected to penetrate the Permian with a potential to add to already discovered resources, and first results are expected in Q2 2014.

BAGHDAD / NINA / MP, of the Kurdistan Alliance, a member of the parliamentary Commission on oil, Mohammed Qasim Mashkati confirmed that the Kurdistan Region exported its first shipment of crude oil to world markets .

He said in a statement to the National Iraqi News Agency / NINA / : "The Kurdistan Regional Government exported the first shipment of oil to world markets, with the approval of the CENTRAL GOVERNMENT , and the province will double the shipments of oil to world markets in the next few months ."

Gulf Keystone Petroleum - Breaking news: Shaikan oil exports commence - 9 January 2014

Click here to WATCH

Gulf Keystone Petroleum - Breaking news: Shaikan oil exports commence - 9 January 2014


Click here to watch

Other breaking news:
Friday January 10, 2014


Baghdad warns of legal action against Kurdish exports

Oil Ministry complains to KRG and Turkey in first official response to Erbil-Ankara energy plans.

Haven't got full story, sorry.

legal action in Iraq what chance?

> Still mo oil&gas law agreed?
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">

C&Ped.
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Thanks to LR2 for the link and Suka47 on triple i for producing the whole article, thus having to avoid registering to be able to read on:


Can Gulf Keystone Petroleum Limited’s Share Price Return To 412p?
By Rupert Hargreaves - Tuesday, 14 January, 2014

Right now I’m looking at some of the markets most popular companies to try and establish whether or not they have the potential to return to historic highs.

Today I’m looking at Gulf Keystone Petroleum (LSE: GKP) (NASDAQOTH: GUKYF.US) to ascertain if its share price can return to 412p.

Initial catalyst
Of course, before we can establish whether or not Gulf Keystone can return to 412p, we need to establish what catalyst caused the company’s shares to reach this level in the first place. It would appear that Gulf Keystone reached this high at the beginning of 2012, concluding a rally that began during December the previous year.

As far as I can see, this rally was driven by two factors. Firstly, there was a significant amount of speculation in the market that Gulf Keystone was about to be acquired by a large peer. In addition, it seems as if this rally was fuelled by positive exploration results from the company’s world class Shaikan oil field.

But can Gulf Keystone return to its former glory?
Gulf Keystone’s Shaikan oil field is widely quoted as one of the largest oil discovery’s in recent times and the company’s positive drill results, as well as initial production rates have only confirmed the fields potential. Indeed, with this huge discovery behind it, I feel that Gulf Keystone has all the foundations in place to make another run at 412p.

In particular, according to Gulf Keystone’s own predictions, the company should be producing 40,000 barrels of oil per day for the majority of this year. This works out at 14.6 million barrels of oil per year, and if the price of oil remains around $100 per barrel, Gulf Keystone’s revenue for 2014 will be in the region of $300 million — not bad for the company’s first full-year of production.

What’s more, management has predicted that within 18 months the company’s production will hit 100,000 barrels of oil per day, which works out at more than $700 million in revenue per year.

In addition, I should mention that City analysts believe there are over 2.5 billion barrels of recoverable oil in Gulf Keystone’s Shaikan field. Gulf Keystone has an 80% interest in the field, so it would appear that Gulf Keystone’s Shaikan oil reserves alone are worth around $200 billion.

Foolish summary
So overall, Gulf Keystone has an interest in one of the largest oil discoveries ever and the company’s profits are set to explode during the next few years. As a result, I feel that the company can return to 412p.

Times addition yesterday 14/01.

When drilling for oil started in Kurdish Iraq in the midde of the last decade, it was a high-risk play. There is a perception today that much of that risk has evaporated.
Last week the authorities in Erbil, the region’s capital, announced that the first oil had flowed through a pipeline to Turkey. Previously, exports by producers such as Genel Energy and Gulf Keystone Petroleum had been by lorry and much of the oil produced had been sold into the local market.
Yet the political risk has not gone away. The regime in Baghdad, which admittedly has other things on its mind, claims that the export of oil is unconstitutional. Washington, for its own reasons, is not best pleased. The probability is that the oil will continue to flow and that the Kurds and Turkey will sign a gas supply agreement allowing another pipeline to be built.
The main beneficiaries from the start of exports are Genel, which would also benefit from a gas supply agreement, and Afren. The latter is more focused on its African assets, including a vast find off Nigeria, and does not even factor its Kurdish acreage, including the large Barda Rash field where it is the operator, into its estimates of reserves. Genel’s share price has soared over the past year, as the graph shows, to a point that it is about to trigger £100 million of payments to senior executives. A return to investors is further off, because the company has an expensive drilling programme in prospect off Malta and Morocco.
Its holdings in Kurdish Iraq are at the key Taq Taq and Tawke fields, but, as a cautious note from HSBC pointed out recently, there is little clarity on how much can be sold and at what price. At £11, off 13p, that share price is beginning to look a little toppy and investors might think about taking some profits.
Gulf Keystone will need to build its own pipeline spur from its Shaikan field to hook up with the new pipeline into Turkey and this should be ready within 12 to 18 months. The company has shrugged off the threat of litigation over ownership of those assets and there is the potential of further exploration at Shaikan. The most likely outcome remains a bid, before or after it gains a full listing.
The other Kurdish play is Petroceltic. Again, its exposure is limited; the huge Ain Tsila field in Algeria is of far more relevance.
As ever with such stocks, the risk is not to be dismissed. Political developments in Iraq may weigh more heavily on the shares this year than exploration success.

From this am.


ladyboy21
07:34 Exxon Woos Gulf Keystone [link] Exxon Woos Gulf Keystone US oil supermajor Exxon Mobil is understood to have sounded out London-listed Gulf Keystone Petroleum (GKP) over a possible deal that could value the Kurdistan-focused group at around £7bn.GKP has a market capitalisation of around £1.5bn and is listed on the junior Aim market, but its chief executive, Todd Kozel, believes the group could eventually go for double-figure billions. GKP is sitting on what is considered to be one of the world's great recent oil finds – Shaikan, about 50 miles north-west of Kurdistan's capital, Erbil – but the regional government is known to want a supermajor on board to properly fund and develop the field.It is thought that the board would not accept the estimated £8-a-share that Exxon is considering and that a number of other companies, perhaps including China's Sinopec and Californian giant Chevron, are monitoring the situation. There is even some speculation that an informal four-way auction for GKP might be under way, while it is also believed that the company has spoken to at least two smaller businesses about potentially developing its assets in a joint venture.Last month, it emerged that Exxon was the first of the oil industry's giants to enter Kurdistan, taking six licences. However, this has angered the government in Baghdad because there are old territorial disputes between Iraq and Kurdistan.Baghdad had threatened to terminate Exxon's existing deal in southern Iraq and it had been reported that the US giant might reconsider its licences in Kurdistan. However, the lucrative potential of the Kurdistan fields means that analysts expect Exxon will pursue opportunities in the semi-autonomous region and may already have taken additional positions to those licences previously revealed.There are suggestions that Exxon's interest in GKP was discussed at a board meeting 10 days ago and that initial soundings may have been taken at least six weeks ago. Last month, much of the oil world descended on Erbil for a conference that highlighted the extraordinary oil opportunities in Kurdistan, with Mr Kozel one of the key speakers.It is believed that Mr Kozel would be happy to sell up soon and has even started mulling over his next venture. The American businessman is one of the most colourful figures in the City and has a base of devoted retail investors who are waiting for a takeover of GKP to make them rich.GKP declined to comment. Exxon did not return calls.Posted 3 hours ago by Iain Jamieson Labels: bahamas oil, GENEL, gkp, GKP COURT CASE, gkp sold, gkp take over, gulf keystone, gulf keystone petroleum

UPDATE 1-Iraq to punish Turkey, Kurds over "smuggled" oil-minister

17 Jan 2014 - 14:31

(Adds details, background) BAGHDAD, Jan 17 (Reuters) - Iraq will take legal and other measures to punish Turkey and Iraqi Kurdistan, as well as foreign companies, for any involvement in Kurdish exports of "smuggled" oil without Baghdad's consent, the oil minister said on Friday. Abdul Kareem Luaibi told reporters the government was preparing legal action against Ankara and would blacklist any companies dealing with oil piped to Turkey from Iraq's autonomous northern region without permission from Baghdad. The Kurdistan Regional Government said last week that crude had begun to flow through the pipeline, and exports were on track to start at the end of January, inviting bidders to register with the Kurdistan Oil Marketing Organisation. Luaibi said it was not in Turkey's interest to jeopardise bilateral trade worth $12 billion a year, saying Baghdad would consider boycotting all Turkish companies and cancelling contracts with Turkish firms if the oil exports went ahead. He also said the Finance Ministry had been told to calculate how much should be deducted from Iraqi Kurdistan's 17 percent share of the federal budget if the region failed to meet a government-set export target for this year of 400,000 barrels per day via the State Oil Marketing Organisation. [ID:nL5N0KP3NC] Preparations were under way, Luaibi said, "to raise a lawsuit against the Turkish government for allowing Kurdistan to pump oil through the export pipeline without the approval of the Iraqi central government, which represents ... a clear violation of the agreement signed between the two countries ... governing the export of Iraqi oil through Turkey". (Reporting by Ahmed Rasheed; Writing by Alistair Lyon; Editing by Dale Hudson) ((alistair.lyon@thomsonreuters.com)(+44 207 542 5212)(Reuters Messaging: alistair.lyon.thomsonreuters.com@reuters.net)) Keywords: IRAQ OIL/KURDISTAN