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.

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

Who are DNO? I still don't know.

dana oil as i mentioned b4

I don't think Dana exist any more . Their ticker was DNX.

http://www.dana-petroleum.com/

Ah, cheers cyril. I remember now. They were taken over by KNOC. (The Korea National Oil Corporation (KNOC) was established in 1979. KNOC is the state-run oil company that carries out energy projects on behalf of the Korean Government.)

Yep Korean National Oill.

C&PED as I feel a good reasoned debate and well worth a read.
====================================================

I logged in to i i i to vote this one up about the CPR:


Sun 14:50
Re: Hub - hard to disagree SH6
Daf123 21
"Daf-t" - a bit of an ad hominem. I am not surprised. You'll do anything to obfuscate and bluster your way out of a discussion where your facts and intellect cannot win the argument.

Let's pick some simple statements wrt Equipoise. I'll leave Shaikan-6 alone because in all reality anyone can take the facts and form a basis for an argument depending on whether they wish to ramp or bash the share. You could go for the: "Todd lied because he wanted to ensure that they'd get their share awards" or JG's position of: "couldn't work out what the issue was with the well at first but now think it is a bad cement job". Fair enough, round and round goes the argument.

So, let's take a look at a simple Equipoise statement in the CPR from a block where GKP is not the operator, from a company with a respectable board and is a Todd Kozel free zone. MOL also have a nice history in the oil business:

In the CPR it states: "Akri Bijeel has 25m barrels resource."

Here are some facts that even you cannot disagree with:
MOL have spent $700m ($134m of that is GKP's) to discover this 25m barrel resource. They are currently producing 10k bopd from Akri Bijeel and expect to produce 35k bopd by the end of 2015 and 50k bopd by the end of 2016. To achieve these goals, they intend to spend a further $500m on the block.

I don't know whether you have done the maths on this, working out what an annual production of 50k is but from memory it is over 18m barrels a year. That from a block that has a resource of 25m barrels! It is a resource and not even reserves remember! A block where they are going to spend $500m on top of the original $700m!!!!! That is some CAPEX spend and lifiting costs on 25m barrels that will be depleted after 18 months.

Something is wrong here. If Equipoise are correct then MOL must be crazy? They are going to spend $1.2Bn on a block just fo 25m barrels of resource oil. That's $48 a barrel FFS. If that's the case then the company must be bigger 2@ than you. (put in an ad hominem as you started it!)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

and on the other side, the concerns I have:-

Sun 17:04
Re: Scooby1 on LSE - Dalesmann / Darcies
Rudy09 10
toby, you are obviously struggling to comprehend what I am saying, and more worryingly what I have written, which is in plain English.

I understand what Robbean wrote, I read it first time round and do not doubt its content, what Robbean heard and saw that night, or Robbean's credibility, he (unlike you) has always been balanced here.

Let me try once more, although I did think I made it quite clear in my very first line of my first post in this thread, what my viewpoint was. What you and I think is down there, what we were previously told was down there. What we have read is down there, like the DGA and Ryder Scott reports is now largely irrelevant as the CPR changed all that and changed it, if not for good, for some considerable time.

As I said, the company and the message they are putting out, seens more in line with that CPR and its author far more so than DGA and RS. Have you heard the company trumpet the incredible darcie makeup or bang on about honeycomb like porosity in the last 4 years? No nor me! Thats why we're stractching around old data and asking for presentations from the company that are not forth coming, unlike veiled threats I understand.

Let me give you another example of that. If you recall the Investors Day in 2013, one of the last slides the company put up, was stetegy going foward. And apart from a load of well documented failed targets that were on the slide, another quite prominant point (toward the top if I recall) was 'Managing Shareholders Expectations'.

I'll wite that again, as you've been struggling today...'Managing Shareholders Expectations'. What has happened since then toby? Take your pick - the charts, the SP, the court case, the company broker at the CC touting £3.50, drought of information about mysterious wells, like SH6 where we initially heard we simply could not find OWC, and I recall Nobletrader ( I hate hearsay) suggesting 75k bbblsod were comig from it (that post has now been deleated) to eventually finding out, or should I say, being told, it was a 'Dog' in the CPR, oh and they didn't think to sidetrack it in the two years before finding water and telling us in the CPR.

Now, I don't know about you, and apprehensive as I am with bamboozling you with too much information, if I wanted to 'Manage Shareholder Expectation' and the direction I wanted to coral that expectation was down, or to reverse previous lofty numbers suggested on TV, in RNS and even in New York City no less, I would say all the above would be a very good start. Wouldn't you?

Then there's that dreadful figure in the top corner, just above the 7% in red. You weren't expecting 49p ever toby, nor was I. Nor was Bobobob.

Let me tell you, whatever plans and dreams you had with this investment, I wasn't short of them either, and dare I say mine had a bit more longevity than yours, but it is what it is and to pretend that up until now this has been anything other than a shiiit investment is delusional. Tarmac in Antartica would have been a better punt.

So to answer your question, 'why am I invested here'? For the same reasons you are. I bought into a dream. An 'oilmans dream'. All the hype we were once fed, which may or may not be correct. Again, irreverent. What matters is what the company line is now, and its considerably more conservative than before. Thats the reality.

Trust me toby, I'm underwater just like you and almost everyone else here. Trapped! I'm prepared to make a loss to get out, but just not as much as now. So I'll sit, I have no choice but at least I'm listening to what the CEO is saying and as a result am no longer dreaming, just like Bobobob is no longer it seems.Try it.

Those words again...'Managing Shareholders Expectations’.


There you are a balanced argument complete with chips on both shoulders

"Only two more categories now and the first is to look at the potential for Genel and Gulf Keystone in Kurdistan. These stocks have had an additional bumpy ride as not only have they had the oil price to contend with but by being where they are they have a geo-political risk factor. Genel has not only Taq Taq and Tawke to give them massive increases in production this year but also have the gas development at Miran which I have always said is the jewel in the crown. The market is concerned about payments for their crude from the KRG but I believe that it is not in the interests of the Government not to pay them and in due course this will happen. Genel is a major beneficiary of Turkey’s ongoing need for energy and with significant booked reserves of oil and gas should be on the shopping list of any cash-rich major as it is just too cheap in the long run. As for GKP it too must be looking very interesting at around 50p, at long last the company has hit the targets it set itself and although it too is awaiting payments for crude oil delivered it will also get paid. There is little doubt that once payments start becoming more regular the company can beef up its operation and will deliver value for shareholders. I think that GKP could easily get taken over as now it has started proper production from Shaikan and with modest pipeline connections can steadily increase its oil sales." -

HTTP://www.malcysblog.com/2015/01/oil-price-the-bucket-list-and-finally/

hTtp://www.bbc.co.uk/news/world-middle-east-31061308

BAGHDAD / .. A member of the parliamentary Commission on oil and energy
MP Ali Qubool Bahadli, Saturday,said the next week will provide oil and
gas law to the Presidency of the Parliament to be presented to the House
of Representatives to read it and vote on it.

Bahadli said, in a statement to “Ein Iraq News,” that the budget of
the most basic projects carried out during the current legislative term,
which is the foundation for the rest of important laws, an approval is a
significant milestone.

Bahadli said that the Committee on Energy placed a priority project
of oil and gas law in addition to the establishment of the Iraqi
National Oil Company, as both are linked to one another.

He stressed that week following the legislative recess Committee will
draft oil and gas law to the presidency of the parliament to be viewed
by the Council of Representatives to read it twice, edited it and then
vote approval.

Ayn Al Iraq News

Sunday Times article
mment (0)
Print

The drop in oil prices has burnt investors The drop in oil prices has burnt investors

Kevin Broger had quite a yarn to tell. The Canadian geologist was involved in Brazil’s oil boom in the early 2000s, when explorers discovered vast quantities of the black stuff trapped 20,000ft beneath the sea floor. Namibia, he reckoned, could be next.

Before the Pangea landmass broke apart 200m years ago, Brazil and the arid southern African nation were neighbours, and their present-day geology is strikingly similar.

Based on that logic, Chariot Oil & Gas, the company Broger ran, claimed its exploration blocks across the Atlantic also “may hold significant hydrocarbon accumulations”.

It was not an iron-clad investment proposition, but punters piled in regardless. When Chariot floated in May 2008, it raised £45m to drill some wells and find out. The company was worth £184m.

Chariot has been a disaster. Broger left a year after the listing. The company raised another £129m in three subsequent fundraisings, pulled off a couple of strategic pivots and went through two more chief executives. For all its efforts it has nothing to show but dry holes and hope.

On Friday its shares closed at 7½ p, or 94% below the offer price. Late last year it relinquished rights to a pair of its Namibian licences.

Chariot is not alone. The collapse of the oil price from $114 a barrel in the summer to nearer $47 last week has thrown it, and the rest of the UK’s 120 or so listed explorers, into a life-or-death crisis.

Since 2008 — the last time the price of crude plummeted — the explorers and producers below the big three of BP, Shell and BG have raised $24.8bn (£16.5bn) through 347 stock market floats and follow-on offerings, according to figures compiled by Dealogic.

That mountain of cash underlined the primacy of the City of London as the place to go for prospectors in need of funding, legal advice and everything else that goes into hunting for oil in the modern world. The money was used to fund campaigns from the North Sea to east Africa, in the iceberg-strewn waters of Greenland and on the pampas of Argentina.

The returns, with a few glaring exceptions, have been abysmal. The oil and gas index for AIM, the junior market where most explorers are traded, has dropped 60% over five years. The FTSE 350 oil index, comprised of the largest groups, has fallen 8% in the same period.

Dividends have been almost non-existent. Cairn Energy’s £2.2bn special dividend in 2012 after its blockbuster find in India is a notable exception. Only eight other listed explorers have made payouts since 2008: they were “vanishingly small”, totalling just £1.3bn, according to Justin Cooper of Capita Asset Services.

Nearly half the listed explorers (55) do not even have oil reserves on their books. In other words, they don’t produce oil, nor do they plan to. They simply exist on the hope that, at some point, they will be able to drill a well and find some. But that requires money.

In a new world of rock-bottom crude prices, investors have little interest in throwing good money after bad. A whole swathe of the sector, which makes up 13% of the entire London market, faces going bust or simply being starved to death over the longer term.

One City fund manager said he was pulling out of the sector entirely. “There has been an incredible run of bad drilling results. This is a complicated business. A lot more complicated than I thought,” he said.

The crunch will force fundamental and painful changes through every layer of the exploration industry, including in the City. Philip Lambert, head of Lambert Energy Advisory, said: “Oil courses through the veins of London, and will continue to do so. But given the amount of money raised, and the returns that have been generated, the UK [oil exploration] sector will now have to positively reinvent itself.”

The question is: which companies are going to be claimed by the chaos?

A GOOD WAY to hunt for the vulnerable is to analyse “liquidity”, or how much cash a company has to pay its bills.

Afren is an extreme case. Last summer the Nigerian producer was worth £1.4bn and generating boatloads of cash from its reservoirs in Africa’s biggest country. Then it all began to unravel. Its chief executive was fired over a pay scandal. The company wrote down to zero its biggest acquisition, a $588m field in Kurdistan. And the oil price cratered.

The biggest bombshell came this month when its stand-in chief executive warned that despite having $235m in cash, Afren may not able to make a $50m loan payment and may need to raise money “in excess of the current market capitalisation”. On Friday, shares in the company, which is in rescue takeover talks with rival Seplat, were priced at 5.3p, valuing it at £59m.

On the face of it, the crunch made no sense. Balance sheets, however, can be deceiving. To obtain government approval for developments, companies are usually required to commit to drilling a minimum number of wells or hitting project milestones by a certain time.

In an industry where costs have soared — one deep-water well can cost $100m or more — a single commitment can mean that most or all of a developer’s money is spoken for, even if it has not been spent yet.

Bonds and loans, meanwhile, are based on an assumed oil price, revisited on a half-yearly or annual basis. When the crude price falls far and fast, it does two things. It hollows out turnover and can also make companies breach their loan agreements.

That is how solvent companies can suddenly find themselves in crisis, not unlike homeowners forced to remortgage after a 50% cut in both their salary and the value of their house.

A rival executive said: “The Afren statement was when the penny dropped for a lot of investors. Liquidity crises can come on incredibly quickly.”

To make matters worse, few companies have built up goodwill with their investors. The industry is notorious for wildly overpaying their executives. So now, when they are most in need, investors have little inclination to bail them out.

Another company that traders have zeroed in on is Gulf Keystone, a former high-flyer whose shares have also dived.

The company generates a fair amount of cash, producing 40,000 barrels a day from its fields in Kurdistan, northern Iraq. But it is lumbered with a huge debt pile, dwindling cash and a $54m annual interest bill.

In April, Gulf Keystone must pay half of that — $27m. As of last year, its cash pile had fallen to $90m. It had committed to spending $159m this year to develop a new field, Akri-Bijeel, but is likely to slash that.

Its biggest customer, the Kurdish regional government, owes it more than $100m in payments but is struggling to fund a war against Isis (also known as Islamic State) and support 1.5m refugees who have flooded across its borders.

Without a cash infusion, Gulf Keystone may struggle to make its payments, which is why one of its bonds dropped to 60p in the pound. Creditors are braced for the worst.

BACKING explorers has always been about betting on a team believed to have the best chance of finding the proverbial needle in the haystack. A few have succeeded in recent years — Ophir Energy in east Africa, Tullow Oil in Ghana, Genel Energy in Kurdistan — and could yet be scooped by opportunistic buyers. But most fail.

That has always been the case. The problem is that in recent years succeeding has become far harder. Costs have rocketed. An offshore engineer makes $120,000 a year on average — twice what he did a decade ago. With much of the “easy oil” found, prospectors have been forced into more difficult — and costly — regions.

Yet Big Oil slammed on the spending brakes. Shell said last week it will cut $15bn from investment over the next three years. That will trickle through to the rest of the industry. Already salaries are being cut and workers are being laid off. Drilling-rig rates have halved. The correction has begun. “The sector doesn’t work at $50 a barrel, let alone $44,” said Barclays’ analysts. “Balance sheet strength remains the focus.”

The problem is that for most of London’s listed oil companies, their balance sheet is their weakness.

hxxp://basnews.com/en/economy/2015/02/01/kurdish-mp-in-baghdad-erbil-baghdad-oil-issue-resolved/.

Kurdish MP in Baghdad: Erbil – Baghdad Oil Issue Resolved
Exported Kurdish oil will be measured annually, not daily

Basnews | Biryar Koyi views
01.02.2015 16:27

Erbil and Baghdad solve oil issues

ERBIL


A Kurdish Member of the Baghdad Parliament says that recent issues with the agreement between the Kurdistan Regional Government [KRG] and Iraqi federal government have been resolved.


MP Najiba Najib told BasNews, “Over the last week, there have been some disagreements about how to measure the amount of oil to be exported by the KRG through the State Oil Marketing Organization [SOMO] mechanism. However, the original agreement of 550,000 barrels per day [bpd] remains in place”.


“The State of Law Coalition in the Iraqi parliament wanted exports to be registered daily rather than annually but they failed to get this through the 2015 budget.”


“The Iraqi budget will measure exports annually. So, the KRG shall export oil and Baghdad will send the region its share of the budget,” said Najib.


The KRG will not be able to export 300,000 bpd from Kurdistan oil and 250,00 from Kirkuk through SOMO for a few months, until it honours debts to oil companies.


Once the debts are settled, the KRG can address the shortfall of previous months, working within the agreement of annual measurement.

n1ckb 5 Feb'15 - 07:18 - 399325 of 399330 3 0

"Our focus in 2015 is to align our spending with our earning," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. "We are targeting operating efficiencies, cutting back on discretionary expenditures and high-grading our portfolio - a process we started late last year," he said. "We are also looking to generate larger revenues from our Kurdistan operations," he added.
The Company has restarted sales of oil into the Kurdistan local market and plans to ramp up such deliveries in the first quarter. The Company expects to realize additional payments in respect of past and ongoing exports, the timing and extent of which will drive the 2015 capital program. Mr. Mossavar-Rahmani repeated that DNO continues to have one foot on the accelerator and one on the brake.


From DNO todayhttp://www.investegate.co.uk/dno-asa/gnw/dno-asa---dno-asa-reports-2014-results/20150205070120H1955/

what is the link between DNO and GKP other than Kurdistan?
by the way, who are DNO? ..... i thought it was Dana Oil, but apparently not

Wheres your board thread gone cynic??

which one?