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.

StockMarketWire.com
Gulf Keystone Petroleum has suspended trucked exports from the Kurdistan region of Iraq while talks over payments continue.

The company says that in the interim it will be recommencing crude oil supply for local Kurdistan use to maintain revenues and cash flow. It says this provides the prospect of receiving revenues in the near term.

Gulf Keystone says it remains in talks with the Kurdistan Regional Government's Ministry of Natural Resources over outstanding payments due to the company and establish a stable payment cycle for export crude oil sales in the future.

Export crude oil deliveries by truck have been temporarily suspended. This is expected to be a short term measure until a regular payment cycle can be established for sales via the export route.

The company is actively working towards an early pipeline access solution for Shaikan crude, which will provide significantly improved margins than trucking to the export market.

Chief executive John Gerstenlauer said: "Further to the oil export agreement between the Kurdistan Regional Government and Federal Government of Iraq reached in December 2014, and the recent passing of Iraq's 2015 federal budget, we remain confident that a stable payment cycle will be established in the near term, and we expect to receive payment for all past and ongoing oil sales from Shaikan.

"The company is taking a prudent approach to its capital expenditure in 2015 and is striving to ensure consistent and stable revenues in the short-term, which a return to the domestic market provides. Meanwhile, a number of longer term financing options are currently being progressed by the board."

As previously announced, the company will publish its results for the year ended 31 December on 9 April.

A follow on from the DNO news,worth noting they get 50% of the revenues.Looks like fund raising in some form is underway,a loan,bond,rights issue or sale of some asset such as AB(up for sale),maybe BB to Genal(partner/operator),only time will tell?
In the meantime the SP will take a hit for sure,just how big,a chance to get in at a lower SP,if your brave enough?
Edit.
GENL looks safer bet(maybe not the rewards) as they're well funded.

Well worth a listen.

http://www.investmentu.com/article/detail/43176/interview-john-hofmeister-shell-oil#.VNVLSubEDke

Fri 06 Feb 2015

NewsNewspaperAppJob

Gulf Keystone output under 10,000bpd

Sales to start soon: Gulf Keystone says it is days from inking a new domestic sales deal

GULF KEYSTONE PETROLEUM

Eoin O'Cinneide

06 February 2015 16:57 GMT

Gulf Keystone Petroleum’s production in the Kurdistan region of Iraq has dropped to 8200 barrels per day of oil following its decision to halt exports through Turkey.

The London-listed company expects, however, to finalise within days a contract to sell oil into the domestic market and anticipates volumes sold domestically to top those seen last summer.

Kurdistan-focused Gulf Keystone revealed on Friday that it hadhalted exports from its Shaikan field as it attempts to settle the issue of outstanding payments it is due from the government.

As recently as early December, the company said it had hit its 40,000 bpd gross target at Shaikan.

Upstream understands that this figure was maintained until recent days, but that output is now down to 8200 bpd.

Chief executive John Gerstenlauer told Upstream any suggestion the company was cutting output to conserve cash is not accurate, as the saving would in any case be “minor”.

“The main reason for refocusing production is to try to get some positive revenue while the whole export situation is squared away,” he said.

The company has not received any funds for exports since December, when it bagged a $15 million payment. One aspect of discussions with the Kurdistan Regional Government over a resumption of payments has been the possibility of restarting domestic crude sales.

“We are still quite confident that we are going to get paid by the government in the relatively near term, but in the meantime it just makes sense to redirect our production stream to whatever source gives us the best chance for very short-term revenue flow,” Gerstenlauer continued.

Legal & commercial director Tony Peart said the company has already received quotes from potential domestic buyers and it is “basically days away” from finalising such contract.

“At the moment we are working this (production) transition whilst we get these domestic supply contracts signed up. Once we have those contracts, we can of course ramp back up our production to meet that demand,” Peart added.

Asked what volume is likely to be attached to the impending domestic sales contract, Peart said he expects it to be “significantly in excess” of the 8000-9000 bpd sold the last time it dipped into domestic sales last summer.

“But this is only one contract and we are in discussion with a number of potential offtakers who will supplement these contracts – so you are probably looking at several offtake contracts,” he maintained.

Exports by truck via Turkey have proved uneconomical in the current oil price environment, with Gulf Keystone paying $23 per barrel in trucking expenses and the quality and gravity of Shaikan crude relative to Brent demanding a discount.

“With oil prices at $47, the actual net backs were starting to look quite marginal,” Peart said.

Output can continue, albeit it at a significantly reduced rate, as Gulf Keystone has storage capacity of 100,000 barrels at production facility 2 (PF-2) and 40,000 at PF-1 at Shaikan. “They are about half way full right now,” Gerstenlauer said.

Desktop version Contact App© Upstream 2014

The Times:

More problems in the Kurdish region of Iraq for Gulf Keystone Petroleum, a former favourite of the racier sort of private investor.

This is the £410 million oil company sitting on a thumping field in one of the trickier parts of the world, whose market value more than doubled to north of £4 billion in less than two months in early 2012, in no small measure because of unfounded speculation that a wildly generous takeover for 800p a share or more was in the offing.

It wasn’t — and since then GKP’s shares have trended inexorably south as, first, the company was beset by a $1.6 billion claim made against it by a former green beret, eventually thrown out by the High Court in September 2013. Then there was a shareholder rebellion led by M&G and Capital Group, two of the oil explorer’s leading institutional investors, as well as regional political difficulties on the ground not of its own making. Neither has the cratering oil price helped.
From a peak of 411p in 2012, GKP shares have broadly halved each year, falling to 219¾p in 2013, 109¼p in 2014 and now 49¼p after their latest 6.2 per cent retreat. Not their cheapest since 2009, but nearly.

Yesterday’s decline was prompted by GKP’s suspension of truck deliveries of crude from its Shaikan field over the border to Turkey because it is still
awaiting export payments from the Kurdish government. They are talking about the outstanding amount and a stable cycle for future payments.

True value is the price a potential buyer is prepared to pay for it - not what the owner thinks it is worth. GKP is in a tight spot financially. Potential buyers will be only too well aware of this and will hang on until there is a forced sale if necessary.


Twaintwix, The facts are as follows.
The company has found much more oil than has been announced. Start to think of JG's 18b and add to it. The CPR has been pulled apart as a work of fiction, covers only a small part of the plan submitted to the KRG and huge amounts of the discoveries were totally ignored. Added to that it is around 18 months out of date during which time there has been much more information gathered on greater recovery rates, porosity and fractures. As for being in a tight spot that is a fallacy. Contracts are in place that will comfortably cover monthly expenditure plus the bond interest to add to the almost $100m in the bank. I don't believe buyers will hang on simply because its is almost a certainty they have been prevented from making offers up until this time due to Political reasons. Would you not consider that the new Finance guy has been brought aboard to look after any bond renegotiations should it be required? We know from the company that it would take very little to move the numbers in the Cpr into Reserves. At that time RBL is available. It is also very likely that the KRG will borrow which would allow them to pay the producing companies. Thanks for the opportunity to actually spell out the facts rather than the fallacies that appear to be posted in increasing amounts.

A reminder from Malcy. From Friday
Gulf Keystone has announced this morning that due to lack of payments from the KRG, it has suspended exports in favour of recommencing crude oil sales to local refiners. This echoes what DNO said yesterday and if Tawke crude is being sold locally then it would be surprising if Taq Taq oil wasn’t being marketed in the same way putting all the oil companies in the same basket.

For GKP this actually makes a lot of sense, transporting crude 1,000 km costs around $22-23 a barrel, if sold locally the buyers just drive by and collect it from their production facilities. Expect an announcement of a significant contract soon but there are plenty of locals looking to buy the crude from the vendors and without the transport costs the company realises almost the same in revenues. What GKP has done is a stopgap solution to maintain cash flow and one which the MNR has been consulted on and is fully supportive of. I remain convinced that the situation regarding the KRG and the marketing of crude oil by the MNR is sorting itself out and that current difficulties are just that, once commitment crude has been sorted not only will payments restart but the backlog will be erased and forward oil sales satisfied. After that the ‘new era’ of the relationship between Erbil and Baghdad will lead to much better treatment of the oil companies producing in the area so good news for GKP as well as Genel and DNO.

- See more at: hxxp://www.malcysblog.com/2015/02/oil-price-gulf-keystone-and-krg-general-petroceltic-sundry-statoil-and-finally/#.dpuf

So who's right? Worth keeping a close eye on .

http://www.iraqinews.com/features/oil-minister-expects-crude-price-to-rise-again-soon/

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

http://www.theage.com.au/business/markets/oil-could-fall-to-as-low-as-us20-a-barrel-says-citigroup-20150210-13a7fs.html

Still needs signing off i believe,but should just be a formality?
---------------------------------------------------------------


President of the Republic approves the federal budget law
10/2/2015 11:06:00
Print
PRESIDENT OF THE REPUBLIC APPROVES THE FEDERAL BUDGET LAW
President of the Republic Dr. Fuad Masum approved on Tuesday morning, the Federal Budget Law for 2015.
A source in the Iraqi presidency office told PUKmedia that President Masum approved today, the federal budget law for the year 2015, noting that the law will be published in the Official Gazette of Iraq (Alwaqai Aliraqiya).
For his part, Supervisor of the Finance Committee in the Council of Representatives, Ahmed Rashid in a statement to PUKmedia said that following the president's ratification of the law, the Ministry of Finance will issue instructions to implement the law.
PUKmedia

http://basnews.com/en/economy/2015/02/11/krg-presents-kurdish-oil-export-record-to-baghdad/

http://www.iraqinews.com/iraq-war/parliamentary-commission-security-defense-reveals-documents-coalition-aircrafts-aiding-isis/

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

Chart pointing to 30p.

KRG Faces Investor Revolt as Payment Issue Persists
Monday, February 16, 2015
Summary
Investor sentiment in Iraq's semiautonomous Kurdistan region is taking a beating as a prolonged lack of payment to producers by the local government shows no sign of letup. Several companies, including UK-listed Afren and Gulf Keystone, US independent Hess and the United Arab Emirates' Taqa are looking to exit or reduce their Kurdistan exposure, sources tell International Oil Daily.

HTTP://www.energyintel.com/pages/login.aspx?fid=art&DocId=876987

http://www.iraqinews.com/features/masoum-ratifies-budget-law-of-01/

So what now?
-----BAGHDAD


The Kurdistan Regional Government (KRG) and Iraqi federal government have met to discuss the financial crisis in Iraq. The Baghdad government claims that it does not have cash reserves to send the budget for January and February to the KRG.


A delegation led by KRG Prime Minister Nechirvan Barzani arrived in Baghdad on Sunday and met with Iraqi Prime Minister Haidar al Abadi.


The agenda addressed the current situation in Iraq, the importance of cooperation between the Peshmerga and Iraqi army in the war against Islamic State (IS), the military support of the US-led coalition and the financial crisis in Iraq.


Delegates also discussed the oil deal between Erbil and Baghdad and misunderstandings that recently arose over some points of the agreement. Both sides reiterated their commitment to the agreement.


In a press conference following the meeting, Barzani revealed that the KRG’s oil exports will be audited quarterly.


However, Baghdad is unable to honour the Kurdistan Region’s budget for January and February, due to the ongoing financial crisis.


After a second round of meetings late on Sunday night, the KRG released a statement saying that meetings will continue. The statement repeated that Baghdad insists that is unable to deliver the KRG budget.------------------------------------------

http://www.iii.co.uk/tv/episode/will-gulf-keystone-be-taken-over

< ">

reuters also report possible t/o, but have wished too much for this lot for far too long so shall try to put the thought to the back of my mind

Best i can make out,is the former CEO Todd is interested,or so the rumour goes?

i'm not fussed ...... around 120 would do me nicely, but fat chance