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.

RNS Number : 2425B

Gulf Keystone Petroleum Ltd.

05 January 2015

Not for release, publication or distribution, directly or indirectly, in whole or in part in or into the United States or any jurisdiction other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws or regulations of such jurisdiction. This announcement (and the information contained herein) does not contain or constitute an offer to sell or the solicitation of an offer to purchase, nor shall there be any sale of securities in any jurisdiction where such offer, solicitation or sale would constitute a contravention of the relevant laws or regulations of such jurisdiction.

5 January 2015

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone" or "the Company")

Shaikan Production Update

Gulf Keystone Petroleum Limited, an exploration and production company with operations in the Kurdistan Region of Iraq, today provides an update on the Company's operations at Shaikan, its key producing asset.

The Company is pleased to announce that the existing Shaikan production facilities ("PF-1" and "PF-2") are now producing from seven wells with Shaikan-8 expected to come online in January 2015. Total daily production has been gradually increasing since early December 2014, reaching the Company's 40,000 gross barrels of oil per day target on 27 December. On 29 December, a record number of 354 trucks were loaded at PF-1 and PF-2 with nearly 58,000 gross barrels of Shaikan crude sent by truck to the Turkish coast for further export sale.

On 24 December, the Company spudded Shaikan-11, an additional producer, which will be tied to PF-2 through the 11 km flowline, already in place.

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

"We are pleased to begin 2015 on the back of a positive end to last year, having achieved the Company's record daily production and crude oil export sales rates from the Shaikan field. 2014 was not without its challenges for the Kurdistan Region and we are proud of what has been achieved against this backdrop, in particular a nearly 300% increase in Shaikan production and export sales since January 2014. Our immediate focus is to ensure a stable daily production rate of 40,000 gross barrels of oil per day, which is a base for future production growth, whilst maintaining a regular payment cycle for Shaikan export oil sales by truck and to finalise a pipeline access solution for Shaikan."

Enquiries:

MOL Plc. hereby informs the capital market participants that our partner Gulf Keystone Petroleum Limited (GKP) provided an update on operations at the Shaikan block.
In-line with that MOL Group hereby announces that the existing Shaikan production facilities ("PF-1" and "PF-2") are now producing from seven wells with Shaikan-8 expected to come online in January 2015. Total daily production has been gradually increasing since early December 2014, reaching the 40,000 gross barrels of oil per day (“bopd”) target on 27 December. On 29 December, a record number of 354 trucks were loaded at PF-1 and PF-2 with nearly 58,000 gross barrels of Shaikan crude sent by truck to the Turkish coast for further export sale.
On 24 December, the GKP spudded Shaikan-11, an additional producer, which will be tied to PF-2 through the 11 km flow line, already in place.

Alexander Dodds, Group Executive Vice President for Upstream added:
“I’m glad to see the progress on Shaikan. No question, reaching 40 mboepd production level is a significant milestone in the project. However the further upside is huge. We will work together with our Partner and with the Ministry of Natural Resources in order to deliver further successes as soon as possible by developing the field in the most efficient way.”

evening standard portfolio tip this evening:

Snap up Gulf,Cantor Fitzgerald urges.
The broker feels the fact that the kurdistan focused oil explorer has met its "challenging" target of 40,000 barrels per day at its Shaikan well is "an important milestone" and augurs well.
Shares are 68p:target is 154p

0

From Oil Barrel
By Amy McLellan

A good start to the year for London-listed Gulf Keystone Petroleum, which begins 2015 having met its year-end production target of 40,000 barrels per day from its Shaikan field in the Kurdistan Region of Iraq.

This has been a long-held goal for the company and, given the turbulent geopolitical backdrop in the region, it was an important one to hit in order to reassure investors that it’s business as usual for the £575 million market cap company.

The giant Shaikan field, where there are 12.5 billion barrels of oil in place, produces from seven wells, with an eighth due online this month and another now drilling ahead. The 40,000 bpd milestone was reached on December 27 and two days later, the company loaded a record 354 trucks from its PF-1 and PF-2 facilities with nearly 58,000 barrels of Shaikan crude for trucking to the Turkish coast for export.

CEO John Gerstenlauer said the company was “proud” to have delivered a near 300 per cent increase in production and export sales from Shaikan despite the challenges in the region.

Importantly, the Bermuda-registered company is now getting paid for its export production. In early December the company announced it had received an initial US$15 million for its oil export sales.

Given the ongoing export dispute between Baghdad and Erbil, the capital of the Kurdistan Region of Iraq, concerns about payment have long been a headwind for the stock.

In November the Kurdistan Regional Government’s Ministry of Natural Resources, which is keen to exercise is constitutional rights to produce and market the natural resources under its control and to put clear blue water between how it operates compared to its counterparty in Baghdad’s Ministry of Oil, made an initial payment of US$75 million on account to producers for exports, with further payments to follow on a regular basis.

This was good news for Gulf Keystone and fellow producers in the region, such as Genel and DNO, which together have helped lift exports through the Kurdistan to Turkey pipeline to around 400,000 bpd, with plans to export 500,000 bpd by the end of Q1 2015 and 1 million bpd by early 2016. This production is vital to the KRG as it continues to battle Islamic State and handle a growing refugee crisis.

While Gulf Keystone’s initial US$15 million is a modest contribution to the monies it is currently owed for export sales, it does signal the willingness of the KRG to meet its obligations to the international oil producers. Analysts at Edison Investment Research said the payment was a “very welcome first step”, noting that they believe the company is owed US$35 million from its production over H1 2014 with “probably more” than US$50 million due in H2.

The company now wants to bed in its higher production rate and ensure a period of stability at this 40,000 bpd level. Next steps will be to ensure those payments are made regularly and to finalise a pipeline solution for exporting Shaikan crude in order to reduce trucking costs.

The elephant in the room, however, remains the oil price. Stable production of 40,000 bpd at an oil price of US$100 or more would have been transformational for the company; with oil now under US$60 a barrel and still falling, the revenue stream will be lower and more volatile, weighing on the company’s ability to fund its capex plans for the year ahead, which may include further development of Shaikan as well as starting work on the first phase of the Akri-Bijeel development.

Shares in the company have lost two thirds of their value over the past 12 months, a reflection of the troubles in the region and the wider lack of appetite for oil stocks, but have added 20 pence since the lows of October. On Monday the stock was trading at 64.5 pence per share.

Analysts at Northland Capital Partners said that were the company operating in another part of the world it would be a “ripe takeover target” but its “strong underlying fundamentals” remain “offset by the significant risk profile that continues to mean it is not one for the faint hearted”.

A post by dalesman which has flagged over 50 ticks.

Jan'15 - 15:33 - 395701 of 395801 50 2

Afternoon All

All the constant reference to the falling oil price on this board falls almost into the category of misinformation.

Any perusal of recent and indeed not so recent presentations by the company directs the reader to the fact that GKP is relatively insensitive to the oil price.

So the constant anxiety and constant reference to the price of oil is mis placed as it should have only a minor impact on the company.

Look at the contract.

When we have been paid back for all costs including all trucking costs then the return to GKP becomes 9% of the oil price governing at any one time.

At $100 oil this equals $9 at $50 the figure becomes $4.5 under the profit component of the contract after a period of transition has been completed. We are nowhere near this transitional phase.

A 10% fall in the POO equates to less than 1p decrease in income on a barrel of oil after we have made the transition from cost oil predominating to profit oil. This is the R factor.

all that the POO decline means is that we remain for longer in the period where cost oil dominates the payments.

The decline in POO will slow down the money available for development drilling however as the price of oil declines so should the drilling costs as rigs become redundant and the need to maintain an income stream becomes more critical for the drilling companies. So ever cloud ........

To focus solely on the current Brent or West Texas Crude price therefore is something of a red herring. Unfortunately there are those on here that hope to use this variable to spread fear as the decline continues.

In the meantime the company still has very attractive lifting costs, all recoverable under the PSC and huge reserves even if you take into account the "baseline" figs that were presented via the infamous CPR.

We must, given the positives that now accrue to the company more credence. We are an attractive proposition for a Major and as it is a Major that the KRG wants to see developing Shaikan things will turn around.

Go figure.

(Written on the Ben McCree in a force 8-9 gusting 10) Lots of white water over the bow:0) We may be in stormy weather ( spray from a huge wave just went right over the bridge) but this passage of time will pass :0)

Put away the sick bags and CHIN UP PEOPLE!

Regards

D

sadly POO or no POO - gkp is in iraq - that is the problem

Agreed ref to location,worth a whole lot more than the SP?


SOMO-Oil Company Payment Statement

Barney71255
8UP


The Ministry of Oil to pay its debts to foreign companies of crude oil
tasder-naft-aliraq-640x480-400x300.jpg
Baghdad-Iraq Press -8 January: The Iraqi Oil Ministry said it had paid all the dues of the oil companies operating in Iraq for the period "(2010 until 2014), and denied the city with 27 billion dollars to foreign companies.

According to a statement of the ministry, said that "some media quoted statements by a member of the Oil and Energy Committee House of Representatives Ibrahim Bahr al-Ulum about the existence of the debt owed by the oil ministry for the benefit of foreign contracting companies amounted to $ 27 billion for the year 2013 and 2014".

The statement pointed out that "the Department of Petroleum Contracts and Licensing wishes to clarify that all of the financial benefits to foreign companies contract has been repaid according to the terms of service contracts for the licensing rounds and all the years starting from 2010 until the end of 2014".

"The amounts received virtually by these companies had been agreed - between them and the State Oil Marketing Company (SOMO) on receipt including equivalent of crude oil, according to the official selling advertised price by Sumo, through the lifting of crude oil shipments were scheduled."

The Ministry of Oil that it "is not a city for foreign companies to contract any financial payments and that the relationship between the two parties going well dominated by full confidence which led to the development of work programs and budgets for the year 2015 according to the plans for the comprehensive development of oil fields all, without any reduction in budgets, indicating contentment contracting companies to invest in Iraq and the recovery of investment amounts, in addition to the wages owed to them profitability ".anthy (1)

Read more: http://dinarvets.com/forums/index.php?/topic/194086-the-ministry-of-oil-to-pay-its-debts-to-for

From lse

Mulder 699 posts

Genel IR call

I spoke with Genel Investor Relations earlier. (Much better than Anastasia!) They say all the oil companies are in the same boat. A further payment is imminent to all from the KRG but they would not tell me when. They also reassured me the earlier payment was definitely not a one off and that these would become regular in 'the foreseeable future'. Advised us all to be patient!

Extract from post,GENL.


Elsewhere in Iraqi Kurdistan, Gulf Keystone is on track to double production from its Shaikan field to 40,000 bpd in January.

Any further expansion of Shaikan is on hold, pending regular payments.

Gulf Keystone is therefore bound to miss its longer-term production goal of 100,000 bpd by the end of 2015.

The KRG paid a total of $75 million to DNO, the Taq Taq partners and Gulf Keystone in December after receiving $500 million in federal funds.

The KRG has just received a further similar amount from the central government, with the companies expecting another share of the cake.

The three pioneers and partners are expected to produce a total of just under 400,000 bpd from their Kurdish fields by February.

Additionally, the local Kar group is producing about 100,000 bpd from the Khurmala dome, thus soon giving the KRG a combined production of 500,000 bpd.

Hawrami has set himself a production goal of 1 million bpd in 2016 from KRG territories, but that target looks increasingly distant amid payment problems, the faltering oil market and security issues.

Pact binds country’s wounds: Page 26


I would think a typing error, $50m more lokely if true?

Gulf Keystone Petroleum- Interview with John Gerstenlauer CEO
I was fortunate enough to be able to spend some considerable time earlier this week with John Gerstenlauer who took over as CEO of GKP last year. Some considered it to be a poisoned chalice but as an out and out oil man JG has taken all the hurdles in his stride and at the end of last year was able to announce that the company had finally hit the targets that had been missed previously.

Having said that, not everything is going to plan as one might expect and i’m sure that at the Genel trading statement next week some of the same difficulties will be addressed. On production, GKP are doing very well and PF-1 and 2 are at or above targets. On PF-1 it is above 20/- b/d and can increase with debottlenecking, PF-2 is also above target and will do more if Shaikan-11, which is drilling now, comes in. On that subject, SH-11 is targeting the Jurassic and drilling from the same pad as SH-10, with all the flow-lines etc in place and being adjacent to it one must hope that a similar result can be achieved and something like the 10-12/- b/d can be equalled. With a spud date of Christmas Day the result should be expected at the very end of the first quarter of this year.

I suppose the biggest sticking point is with regard to payments and here there is no doubt that although all the local operators are confident of being paid in the end, at the moment that confidence is wearing a bit thin. The first payment was made on December 1st and there were high hopes that it would be followed by monthly payments, in GKP’s case, of $15m. With the national budget yet to be approved, a delay has set in already and the idea of regular, stable payments is already confused, allegedly this is whilst the finance function of the Government assess the fall in the oil price. What GKP and others need is to get regular payments for crude supplied now, as and when things improve back payments can be expected, these payments are ‘beyond Ashti’ as they are not in his remit any more.

Transport is another key factor and it is clear that a number of options are still available and all are significantly cheaper that trucking the 1,000 km to Fish Khabur. The link to the pipeline is only 20km and hopefully will be installed before too long, if so as I have always said, Shaikan and Taq Taq crude can be mixed to create ‘Kirkuk’ blend which is better than the two components. Another option would be the constructing of another separate pipeline adjacent to the existing one to carry heavy crude only, this is a realistic option but not quite yet.

What is clear is that certainly from GKP’s standpoint there are a number of things they can do to increase production and whilst they will do that at some stage, it wont happen until there is some sort of stability of payments from the Government. Elsewhere there are no plans for an up-to-date CPR and no real need, last year the move to the main market required it but now and with no need for funding it would be a waste of time and money. GKP will provide a trading update at some stage but all information ahead of the figures in April is already in the market and the well result will come during this period.

Finally the market is always expressing an interest in the sale process of Akri-Bijeel which seems to have been ongoing for a long time, this is partly because of drilling and partly as other parties in the process rather hindered activity, the company now say that exiting A-B is a ‘strategic priority’. Potential JV’s or farm-outs are sometimes mooted and whilst the company says they are often brought into discussions on these matters there is no specific plan to do such corporate moves at this stage.

Management changes are now almost completed, a new CFO is scheduled to start soon and as JG does the job of COO and CEO there is no need for another appointment. John Stafford is VP Operations and the London team is strong and about to move offices, after a long time with the company TK has no position at present. With the A-B sale under way for a long time and wells drilling etc the company is in close season a lot of the time but when a window does come available certain directors may well buy stock, JG it should be observed already has ‘a significant investment’ in the company.

This will do for the time being, I will comment more on specifics as and when they arise, I have pages of notes from the meeting. Whilst the current market is hardly friendly to investing in any E&P stock, not least one in which confidence in getting paid is so low, GKP looks a very interesting bet at the moment. For the first time for a long time I can genuinely see significant upside not just from production but from the value of the asset. The region is awash with companies that would see the acreage at Shaikan as a very solid and growing production and I wouldnt be at all surprised to see the company being the subject of a bid at some stage in the not too distant future.

- See more at: hxxp://www.malcysblog.com/2015/01/oil-price-bp-schlumberger-gulf-keystone-sundry-woodmack-tullow-enteq-and-finally/#sthash.Xjh5Dj14.dpuf

https://translate.google.com/translate?sl=ar&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.alliraqnews.com%2F2011-04-18-02-57-37%2F163686-2015-01-18-09-47-00.html&edit-text=&act=url

Sunday, December 18 January 2015 12:47


[Baghdad-where]
Foreign Minister Ibrahim al-Jaafari said on Sunday that the federal governments and the Kurdistan Regional Government have agreed on the distribution of oil wealth. "
And between al-Jaafari during a news conference with Turkish Energy Minister Taner Yildiz, "we confirmed that the Iraqi oil belongs to the Iraqis and the export of Baghdad, adding that Turkey has contributed to closing the gaps between Baghdad and Erbil .itba

http://www.english.shafaaq.com/index.php/business/12932-iraq-agrees-to-supply-egypt-with-4-million-barrels-of-oil-per-month

Looks like thr US. means business?

http://www.english.shafaaq.com/index.php/politics/12492-first-ground-clash-between-isis-and-us-forces-in-iraq

http://www.english.shafaaq.com/index.php/politics/10124-news-about-the-arrival-of-7000-u-s-troops-to-iraq

22 January 2015

Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone" or "the Company")

Appointment of Chief Financial Officer

Gulf Keystone Petroleum, an exploration and production company with operations in the Kurdistan Region of Iraq, is pleased to announce the appointment of Sami Zouari to the Board of the Company (the "Board") as Chief Financial Officer as of 22 January 2015.

Mr Zouari, 42, joins the Company following careers in both the oil & gas industry and investment banking, where he also had a particular focus on the Energy and Commodities sectors in the Middle East and North Africa.

Educated at Columbia and Harvard Universities, Mr Zouari has most recently served as the Regional Head of Corporate & Investment Banking for North Africa, Iraq and Oman at BNP Paribas. Prior to his career in investment banking, he worked for Total EP in a number of roles, including as Commercial Manager for Total EP Libya in Tripoli.

In line with the Company's Recruitment Remuneration Policy for Executive Directors, Mr Zouari has been granted 1,500,000 market-priced share options at an exercise price of 55.00 pence. One third of the share options will vest upon his appointment and two further instalments of 500,000 share options will vest upon the first and second anniversaries of his appointment respectively.

There is no further information to be disclosed pursuant to sections LR 9.6.11, LR 9.6.12 or LR 9.6.13 of the Listing Rules, FCA Handbook.

In addition, Gulf Keystone is informing the market today that the Company will announce its results for the year ended 31 December 2014 on Thursday 9 April 2015.

Commenting on today's announcement, John Gerstenlauer, Gulf Keystone's Chief Executive Officer said:

"We are delighted to welcome Sami Zouari to the Board and to complete the management team. Alongside his strong financial and industry background, Sami brings substantial knowledge of the Middle East region, which is key to our operations and stakeholder relationships in the Kurdistan Region. He knows Gulf Keystone well, having worked with us in the past on the convertible bond issues for the Company in 2012 and 2013.

"I would like to thank Mary Hood, who will now assume the role of Deputy CFO, for the excellent interim job she has performed for a number of months."

This is what Merrill's have had to say about DNO today:

DNO (Buy, PO NOK24/sh)
DNO offers sector leading production growth (+50%) and in 2016 is the highest
producing E&P company in our coverage; with over 120kbd net (BofAMLe).
Shares are currently trading almost 35% below where levels seen in early July
14, ahead of the Islamic State threat to the region, a risk that has in our view
significantly subsided. Further, by virtue of Production Sharing Contract exposure, which acts as a natural oil price hedge, and amongst the lowest operating costs in the oil & gas industry ( low oil price>US$2/boe), we believe DNO is well placed to weather the low oil price ‘storm’.

so they didn't say anything about GKP then!

DNO is Domino Printing. What have they got to do with GKP???.....or Islamic State or anything else on this thread?

dana oil i think

Come on Harry keep up DNO are a producing Co. in KURDis..,also waiting to be paid.
The last(only so far)payment by the KRG)$75M) was split 3 ways,GENL,DNO and GKP,the bulk going to GENL,just $15m to GKP of which 20% went to MOL.

From iii

Iraq will give the Kurdistan Regional allocations petrodollars By Roudao 11 minutes ago

Aram Sheikh Mohammed
Roudao- Baghdad

Finance Committee of the Iraqi Council of Representatives ratified, the decision to grant allocations petrodollars for most of Iraq's oil-producing provinces, including the provinces of Kurdistan Region. The Deputy Chairman of the Iraqi Council of Representatives of Syria, Sheikh Mohammed, the network Roudao media, that "the parliamentary Finance Committee decided at its meeting Saturday, the petro-dollar grant allocations for all oil-producing provinces, including Kurdistan Region. " He added Aram Sheikh Mohammed, the decision to grant allocations for the petro-dollar regions and cities of the Iraqi oil producer, including oil-producing areas in the Kurdistan region as well. "


Read more:
hxxp://dinarvets.com/forums/index.php?/topic/195254-iraq-will-give-the-kurdistan-regional-allocations-petrodollars/#ixzz3PkmAgiB8