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.

One trading day left,interesting time "me thinks".

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The fall off along with increased volume at the end of the day, leads me to think tomorrows news is less positive than one might hope,thats if previous experience is anything to go by?

http://www.investegate.co.uk/gulf-keystone-petrol--gkp-/rns/kurdistan-operational-update/201411130700229258W/

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Predictable after yesterdays finish.

More interested in the fo;;owing.

John Gerstenlauer, Gulf Keystone's Chief Executive Officer commented:

"Gulf Keystone's production operations and export oil sales have continued uninterrupted in 2014. All current production is being exported by truck and these exports are set to increase in the coming months as we are nearing our production target of 40,000 bopd. As we stand by the Kurdistan Region and its people, we welcome the KRG's commitment to putting in place a regular payment cycle for oil exports from the region. As our production increases, we look forward to receiving our full contractual entitlement."

http://www.gulfkeystone.com/investor-centre/gkp-tv-video-player

Kurdistan region, Baghdad reach deal on oil exports and payments

By Michael Georgy and Isabel Coles

BAGHDAD/ARBIL Thu Nov 13, 2014 2:53pm EST


Kurdistan regional government confirms deal with Baghdad over oil exports

(Reuters) - The government of Iraq and the semi-autonomous region of Kurdistan have reached a deal to ease tensions over Kurdish oil exports and civil service payments from Baghdad, Iraq's finance minister told Reuters on Thursday.

Hoshiyar Zebari said the central government had agreed for the time being to resume payments from the federal budget for Kurdish civil servants' salaries.

Zebari, who is a Kurd, described the step as a "major breakthrough" that would reduce friction between the KRG and Baghdad. He said the payments would cover October and then November.

The deal was reached after talks between Iraqi Oil Minister Adel Abdel Mehdi and Kurdish Prime Minister Nechirvan Barzani in the Kurdistan region on Thursday.

Baghdad stopped paying for KRG civil servant salaries in protest against the Kurds' exporting oil to Turkey independently.

Under the agreement, Iraqi Kurdistan will give 150,000 barrels per day of oil exports - equal to around half its overall shipments - to the federal budget.

In Arbil, the Kurdistan Regional Government (KRG) confirmed the agreement.

"What they have agreed is that Baghdad will release some funds - $500 million - and the KRG will give 150,000 barrels per day of oil to Baghdad," KRG spokesman Safeen Dizayee told Reuters.

EXPORTS STILL UNDER CONTROL OF KURDS

He said a KRG delegation headed by the prime minister would travel to Baghdad soon to hammer out a more comprehensive deal and the regional government would not hand over control of exports to Baghdad.

A similar agreement was proposed in April but never advanced to a deal.

In July, then Iraqi foreign minister Zebari said the Kurdish political bloc withdrew from the national government in protest against Prime Minister Nuri al-Maliki's accusation that Kurds were harbouring Islamist insurgents in their capital.

The Kurds later rejoined the administration. But tensions persisted.

Maliki, one of the most divisive figures to emerge from the U.S. occupation of Iraq, was later replaced by Haider al-Abadi.

He is seen as a moderate Shi'ite capable of cooperating with Sunni Muslims, Kurds and other sects.

Iraqi leaders are under pressure to bury differences in order to counter Islamic State militants who have seized chunks of the country in the north and west.

There are about 5 million Kurds in majority Arab Iraq, which has a population of more than 30 million. Most live in the north, where they run their own affairs, but remain reliant on Baghdad for a share of the national budget.

(Writing by Michael Georgy; Editing by Keiron Henderson)

< Derwent i thought i posted that article earler on,seems not?

Hopefully the political breakthrough needed to bring real value to GKP,if so the way would be clear for a major to pick up this amazing asset for peanuts? If so our best
chance of getting value would be a bidding war,

oimho.

Well i topped up earlier as i feel the agreement between ICG and the KRG has been the main reason for a poor SP,only time will tell.With a more positive political environment
i believe the majors are more likely to attempt to purchase this huge asset.

6 0

Baghdad and Erbil Finally Reach Agreement on Budget and Oil
14.11.2014

BasNews, Erbil


After months of standoff between Iraqi central government and Kurdistan Regional government, on Thursday, both side reached a preliminary agreement over longstanding issues of the budget and oil of the country.


According to KRG official statement, as the first development is Iraqi government’s agreement to transfer $500 million to the cash-strapped Kurdish Regional Government.

In return, the Kurdish Regional Government has agreed to put 150,000 barrels of crude oil per day at the disposal of Iraq’s federal government, the statement said.

The breakthrough comes after, Iraqi oil minister Adil Abdul-Mahdi visited Kurdistan region and met with the region’s president Massoud Barzani as well as KRG Prime Minister Nechirvan Barzani and other senior Kurdish official in aim to solve the enduring oil and budget issues between Baghdad and Erbil.

Sherko Jawdat, the head of oil and gas committee in Kurdistan Parliament said that Baghdad-Erbil long overdue agreement is a welcome and important progress.

Jawdat told BasNews that KRG has agreed to sell one barrels of oil for $111 to Baghdad.

“We have informed KRG that to agree with Baghdad only under one condition if they protect the KRG rights,” said Jawdat from Erbil.

Meanwhile, its expected that in the next a few days, Kurdistan Region PM Barzani will head a Kurdish delegation to visit Iraqi capital Baghdad and in an effort to solve the rest of the issues between Kurds and Baghdad authorities.

In addition, The United States on Thursday welcomed a deal between the Iraqi government and the KRG on the export of Kurdish oil.

State Department spokeswoman Jen Psaki called it as an initial step toward a fair and comprehensive solution on the management of Iraq’s oil resources.

’We are encouraged by this development and the willingness of officials in Baghdad and Erbil to address these complex issues directly and earnestly,’ Psaki said.

16:35:28 80.00 161,853 UT 80.00 80.25 Sell.

80p finish,excellent.

Further news next week promised,from karla Lumpa.

16:35:28 80.00 161,853 UT 80.00 80.25 Sell.

80p(+17%) finish,excellent.

Further news next week promised,from karla Lumpa.

Good post by Bill Fish on III

Hi Guys,
Taken a wee while to absorb all the info that was presented yesterday - looks like the market has done the same.

IMHO the most important information was imparted at the Genel capital markets day as it has implications for all the KRI players.

The most important piece of information IMHO is that a KRG PSC is no longer to be regarded as sacrosanct.

Genel have taken 2 of them and tossed them in the bucket.

In their place they are in the process of creating a new type of PSC that amongst other things does away with Profit Oil and Cost oil as we know it and also kicks the R factor into touch.

Instead of a single contract covering the disposition of all the hydrocarbons their contact splits the hydrocarbons into streams and each stream has a separate disposition.

I must admit at first glance setting the KRI price for raw gas at 78 cents per mcf did not exactly have me turning somersaults given the amount of gas we have to deal with. A closer look at the Genel proposition has made me change my mind.

Under the new contract Genel now get 100% of the oil until they recover 100% of their total costs for everything. The oil is then split 50-50.

Note no R factor and intriguingly no mention of CBBT either.

Genel get 100% of the condensate for the lifetime of the contract.

Genel sell the gas to the KRG at 78 cents per mcft.

The KRG have signed a contact with Turkey to sell them gas at $6.75 per mcfu i.e more than 8 times what they are paying for it.

Meanwhile Turkey who are currently paying $12-13 for their gas will get gas from KRI at approx half of what they are currently paying.

On the Capex front Genel have committed to $1b to pay for everything up to delivery of the gas to the processing plant while the KRG need $4b to build and operate the gas plant and any customer facing infrastructure.( apparently their are loads of Turkish contractors ready to step in here).

The deal works better for those with more oil which suites Genel at Miran - less so for Bina Bawi so OMV have taken the opportunity to cash their chips and bow out. A decision I suspect not completely unrelated to the kicking they are getting as a 10% partner in Pearl.

Genel propose to start with a horizontal well at Miran to tap the oil there first of all before drilling the gas wells.

Win win all round.

Turkey gets a 50% reduction in its energy bill for their Power Stations
KRI gets really cheap gas with an export contact worth 8.5 times cost price while being able to provide domestic gas cheaply at a profit.
Genel and their shareholders get a 15% return on the deal and TH is happy with that.

What does that mean for GKP and the other contractors.

From the Q&A it was made clear that this deal was made between Genel and the KRG without recourse or thought for the other contractors.What comes out of it for the other contractors is purely happenstance.

The contact only works if Genel get paid for their oil. If Genel don't get paid for their oil then the KRI don't get the cheap gas and Turkey don't get a 50% cut in their electricity generation bill.

This puts tremendous pressure on both the KRG and Turkey to get a solid payments mechanism in place as their benefits come at the back end of this deal so the quicker it is in place the better.

This will benefit all the KRI contractors, us probably most of all.

The breaking of the sanctity of the KRG PSC shows what is now possible. Your assets now have 2 or more valuations. They can be valued using the standard PSC which we all understand but there is now also a value for ingenuity as well for those that come up with more creative methods for monitising the assets.

Not all the hydrocarbon streams have to be valued the same way under the PSC- Genel have shown this.

Depending on the composition of your hydrocarbons there must now be an incentive for some operators to come up with a proposition that at the very least removes the "R" factor and, can we even whisper it, removes the CBBT as well.

On the down side if you stick with the standard PSC and have a lot of gas then it becomes a liability, a cost if you like that we have to dispose of.

The type of deal that was outlined yesterday by Genel was of a breadth,scope and imagination the we as GKP shareholders once thought would be generated by GKP when PW were hired for their expertise in this area.

That did not happen, but now the ice has been broken, surely it is time to have another look at our assets and see if value can be enhanced by a more creative regime for their monitisation.

At the very least the imperative that lies with the KRG and Turkey to get the payments sorted should see all the operators share price ourselves included head north.

GLA

BF

Gulf Keystone Petroleum Limited Is Back With A Bang!
By Harvey Jones | Fool.co.uk

You might have spotted today's 14% rise in the share price of Gulf Keystone Petroleum (LSE: GKP) and found yourself thinking: why didn't I buy it when I had the chance?
The truth is there was a very good reason why you didn't buy. In good times or bad, this is a hugely volatile holding.
Although to many investors, that's its charm.

Shaikan All Over

GKP is back with a bang after announcing that it its Shaikan operation in Kurdistan is on track to produce 40,000 barrels of oil per day (bopd) by the end of 2014.
That's a leap from today's 23,000 bopd, and comes fast on the heels of last week's announcement that the Kurdistan regional government's ministry of natural resources will begin repayments to producers for exports.

Well Of Hope

Long-term investors will be breathing more easily, because they have gushed losses over the last year. Last time I took a close at Gulf Keystone Petroleum, almost one year ago, its shares were trading at 171p.
Even after today's dash for glory, its stock costs just 77p.
The sharp fall in its share price over the last year was partly down to the Islamic State (IS) militancy, which threaten Kurdish borders, and a report in March that the Shaikan field only held 299m barrels, of which just 163m belonged to GKP.
Investors ignored management protests that it had only drilled 25% of its target 109 wells, which could dramatically increase the reserves.
Patience Is A Virtue
The world turns, and if you had bought GKP's shares last month, you would be sitting on a 56% profit.
The good news started rolling in October, when the Kurdish regional government approved the field development plan for the Akri-Bijeel block, part owned by GKP.
That's the company's reward for years of exploration and patience.
But the volatility of GKP's share price performance only underlines why smaller oil companies are only for those with strong nerves and vast reserves of patience.
Recent good news is a respite, but no guarantee of a full-blooded turnaround in the company's fortunes.
Anything could happen in Iraq, although it does seem the West is committed to arming Kurdistan against the ravages of IS.
If you think IS will burn itself out, and Kurdistan will edge closer to statehood, Gulf Keystone Petroleum is still a lot cheaper than it was despite today's share price surge.
But brace yourself for more volatility, because in this corner of the world, it won't be far away.

Excellent summing up of the ICG/KRG situation.

http://www.nytimes.com/2014/11/10/opinion/the-kurds-cant-afford-to-leave-iraq.html?_r=1

http://www.proactiveinvestors.co.uk/companies/stocktube/3254/mol-group-hoping-kurdistan-will-offset-production-declines-3254.html

long winded but worthwhile,goes on and on,so it's GKP and only $499 .

http://www.angelnexus.com/o/web/66892

http://www.gulfkeystone.com/investor-centre/gkp-tv-video-player

http://www.brrmedia.co.uk/event/132946?popup=true

http://rudaw.net/english/middleeast/iraq/25112014