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.

From LSE poster Notsramdamus at AGM --- worth reading posts of this guy with others said to be posting later:--


Notsramdamus
Posts: 4,591
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Opinion: No Opinion
Price: 34.75
View Thread (2)RazorsEdgeToday 16:21

As I understand it... Certain intersted parties are being told to either stump up or sod off.... We can run forever at 30mph, but the thrill of doing a ton (100mph) is far more enjoyable? This way close period ends and I would not be surprised to see buy ins! SZ insisted on an option deal over more sal? All sals have been reviewed ? JF knows Dr Doom and has 4 for years. So it wont be a start from scratch but more of a.... Right lets move on from here, by starting on the right foot!


GKPCouple of points...Today 15:59

Think small regular payments are imminent / think bond bonus payments will continue / think once JBJ starts his routine of much better PR / IR much better cash management and hopefully explains that the sooner the krg start to pay IOC,s DECENT amounts & regularly? in particular GKP - the infra structure is nigh on ready to increase production. The assett is not in question as far as I am concerned ? But you need a strong foundation to build on. JS is doing his bit SZ is doing his bit. JF is talking sense and even the chairman and remaining Neds are finding new vigor!

Going to be an interesting 15/16 Imho ? Would expect city to actually start to watch this way more closely now ?


GKPMainshareToday 15:29

Lots of talk about cpr, sensible responses under the circumstances also. Was freely admitted lots more oil across the different sites - one described as depth over three times height of The Shard ! And 25 kilometres KILOMETRES long with huge recovery possibilities!!! But... No point in adressing this until funding sorted as you need money to develop it? Reckon personally the this region is home to several MONSTER Commercial opportunities ! Geo Politics in play and once all sorted... Well there will then certainly be an open fight for T/O as the supermajors ARE aware but like everyone want it for peanuts until money/politics sorted all in my opinion! Well worth me going :)


GKPGeneral overviewToday 15:02

Went as well if not better than expected! Eyes are def wide open now, lots of obvious thoughts confirmed, some unknown also? Breath of fresh air with Sam Zouri & Jon Ferrier and John Stafford very informative, within guidelines permitted! Looking forward to the London open day being discussed!


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Some additional notes from AGM
JFerrier
- Good presentation
- Has spent time before working in Kurdistan with Dr Ashti H, so already knows him well.
- New PR strategy, intending to do presentations in near future
- Have cut costs, minimised capex, non-exec pay reduced
- M & A activity quite low
- GKP would not accept low bid, no bids made informally or otherwise
- Discussing the possibility of bringing sale process to an end if no bids forthcoming
- Directors in close period, so no share purchases, but could if sale process ended
- On-going discussions with other IOC’s in Kurdistan, open and regular dialogue
- Focus was mainly on getting paid
JStafford
- 6 times volume in matrix compared to fractures
- 65% recovery from fractures, but recovery from matrix unknown (currently 3-7% guesstimate) and may remain unknown for years.
- Production only from fractures
- 20,000 PF2 due to some water problems, which should be resolved soon to increase production
- Blending at Fishkabour has been tested and could be started within weeks
JPeart
- Blending at Fishk. Only $5 discount for heavy oil, $6 transport costs, so $50-54 split 50:50 with KRG, based on $60-65 Brent
- $72m cash balance includes $35m for bond security
General incl Q & A
- Sky leaks source unknown, reluctant to spend money investigating source, will re-ititerate to all insiders the need for confidentiality
- No immediate plans to side-track SH6
- Discussions with KRG about recovering interest payments on bonds due to lack of payments
- KRG well aware of GKP liquidity problems and have responded with payments in the past and will do what they can to ensure future bond payments can be made

I don't understand this reluctance by the Krg to pay the Oil Co's , best thing is to let them up their output and drill more holes , the money will start rolling in . I know they have problems but they have to start paying . I also have a feeling if they announce no takeover people will sell out , and I think this will be even more of a bargain .

and blah blah blah blah ....... GKP is going nowhere for the foreseeable future, so shareholders had just better hope it doesn't go down the plughole in the meantime

Morning all, some further AGM notes from "The Blue Horizon" on iii..posted today 00:39

Here is my quick summary of some interesting points from the Agm. Some of this may have been covered and I may have missed other points...and in no particular order

Surprisingly low shareholder turnout - 17 I think was the number. Board and senior team very engaged with shareholders who attended

Getting paid is top priority, they all talked about it. I sense there have been robust discussions with MNR who eg know about 26m October interest payment. No guarantees but expectation of at least a drip feed whilst payments are sorted. Confirmed they are talking to the decision makers - Dr Ashti is the main contact

Big focus on keeping costs under control and several examples given.

On M&A presently it seems there may be a difference between buyer and seller price perceptions but still some serious names in the data room . They will not cut a deal at any price

JF will spend 1w per month in ERbil . On going discussions with other IOCs on areas of common interest

Commitment to future shareholder events/ communications

13m barrels of Shaikan crude produced and sold , 95% from upper Jurassic reservoir. 100% dry oil. At pf2 some water handling problems but all drilling water not formation water.

Reservoir is extremely well connected over 25km

1km oil column -3 London Shards

Aquifer is not acting as expected but it's good news. I may get this wrong... But it seems as oil is extracted it would be expected that water level would rise but instead the gas cap at the top of the reservoir is moving downwards and therefore the pressure drops. Others may understand this better but JS said it was good news

FDP update for Shaikan by year end, SA FDP by Q3

Every Shaikan barrel produced has been sold. 3 sales channels, 1 trucking to Dortoyl, net back to the field after discount for heavy oil and transport costs $22-27 per barrel, 2. Domestic sales of just under 1m barrels net back to the field $22-27 as above, and 3. Injection into pipeline at Fishkabour (sp!) to commence soon- testing done, no timescale given but expected soon - net after costs and discount $50-54 per barrel

SZ - Gulf was his client since 2011 prior to joining as FD.

Unrecognised revenue ie unpaid is $103m, was $102m at year end hence broadly all 2015 sales have been generating cash - not a coincidence

Equity raise earlier in year served its purpose to provide the required bridge until payments or other transactions. Current cash at 72m described as satisfactory. Arrears not likely to be received this year but. Expect to get paid from this point onwards

Cash burn is 8-10m per month plus capex at 1 to 2m per month

Q whether M&A is a distraction. AS said they would want to draw a line under it if a deal not forthcoming. He still intends to buy shares when/if not in close period

Q re ultra conservative CPR. Per JS it's a good baseline. They won't know how good the field is for several years particularly re recovery factor in the matrix, hence v low 3-7% used in CPR. JF quoted "big fields get bigger" mantra. He also said there was an awareness in other companies of how good our asset is - from his own experience at Maersk. They seem to be a bit coy on this as you would imagine info has been provided in data room for potential buyers

Q re why big turnover in directors and can we expect stability going forward. Yes to the latter but did not really deal with first point

Directors pay is at lower levels than in past and to be aligned with shareholders interests

Not happy re Sky leaks. Could spend a lot of money to try to get to the bottom of it but probably not worth it. Will be emphasising need for confidentiality to staff

Bonds c 5/6 entities hold >50% of bonds

No plan to sidetrack Sh6 - money better spent elsewhere. General Sense that ERbil team are champing at the bit to move things along but constrained by payments/ cash for capex

htTp://www.gulfkeystone.com/media/91221/gulf-keystone-2015-agm-presentation.pdf

Sky still at it, I see.....

A Conservative MP who sat on an influential House of Commons Select Committee during the last parliament is in talks about a senior role with the London-listed oil company Gulf Keystone Petroleum.

Sky News has learnt that Nadhim Zahawi, the MP for Stratford-upon-Avon, has been approached about a leading strategy role with Gulf Keystone, which has been beset by a string of public shareholder rows in recent years.

http://www.news.sky.com/story/1518079/tory-mp-zahawi-in-talks-over-kurdish-oil-role

They said they did not want to do an investigation into it , but I think they will have to . Someones certainly got it in for Gkp , very strange .

http://www.irishexaminer.com/business/t5-oil-and-gas-still-has-an-interest-in-gulf-keystone-342385.html

WAS DOWN EARLIER but now is well up on those press release, but no news.......

mnr.krg.org/index.php/en/press-releases/470-statement-by-ministry-of-natural-resources-regarding-the-producing-international-oil-companies-iocs-in-the-kurdistan-region

From September 2015 onwards, the Kurdistan Regional Government (KRG) will on a monthly basis allocate a portion of the revenue from its direct crude oil sales to the producing international oil companies (IOCs), and as export rises in early 2016, the KRG envisages making additional revenue available to IOCs.

At the start of 2015, the KRG reached a deal with the federal government in Baghdad to export crude oil in exchange for regular payments of the Region’s 17% revenue entitlement. The arrangement was enshrined in the 2015 federal Iraqi budget.

The KRG recognizes the spirit of cooperation in which the budget deal was struck with the federal government and it remains determined to build on such progress, and through dialogue and discussion to reach a lasting agreement with Baghdad on all outstanding issues relating to oil and gas and revenue sharing.

The KRG has also been pleased with the level of technical cooperation on the ground from federal government entities such as the North Oil Company (NOC) and SOMO. The KRG will continue to facilitate oil export from NOC-operated fields in Kirkuk via the KRG’s pipeline network to Turkey.

However, due to a number of factors, the federal government has to date been unable to provide the Kurdistan Region with its monthly budgetary dues. As a result, the KRG has been obliged to introduce direct crude oil sales from Ceyhan to help pay Kurdistan Region’s governmental salaries, maintain vital government services, and of course, pay the Peshmerga and other security forces who are fighting Islamic State terrorists.

Although the revenue gained from direct sales is still below Kurdistan’s 17% share of the federal budget, it is significantly higher than the amount the federal government was able to allocate to the KRG on a monthly basis.

In this regard, the KRG acknowledges and appreciates the economic contribution to the Kurdistan Region made by the producing IOCs and their success in raising oil export from Kurdistan to record levels. They have demonstrated their commitment to the people of Kurdistan at a time when the Region has been fighting terrorism, enduring a budget shortfall from the federal government in Baghdad, and shouldering the social, political and economic burden of an influx of 1.8 million refugees and internally displaced people.

The KRG also recognizes the patience of the producing IOCs, which, despite receiving hardly any payments for their crude oil production since May 2014, have maintained operations and have continued to invest to support Kurdistan’s crude oil export.

Crude oil export is the principal revenue earner for the Kurdistan Region. But, it is also recognized that it is difficult for the IOCs to sustain oil export at its current levels, let alone increase it as planned, without receiving their financial dues.

Therefore, from September 2015 onwards, the KRG will on a monthly basis allocate a portion of the revenue from its direct crude oil sales to the producing IOCs, to cover their ongoing expenses. Furthermore, as export rises in early 2016, the KRG envisages making additional revenue available to IOCs to enable them to begin to catch up on the past receivables due under their production sharing contracts.

Ah, that answers why GENL was also down and now up.

another little gem trying to dive into the wastebin

You're beginning to sound like mitzy, only she uses less words! ;o)

sorry to report, but i have held these for far too long :-(

Don't do an Afren like i did cynic .

A chart pointing to 15p but will it continue to fall.

Aug 28, 201510:59 AM

[BEIJING] It was only a matter of time.

China's oil majors are primed to join the latest round of global energy deals triggered by the collapse in energy prices. PetroChina Co, the nation's biggest explorer and producer, said this week it's eyeing targets and in discussions about assets swaps in North America. Its rival, China Petroleum & Chemical Corp, Asia's largest refiner, signaled it's looking at overseas acquisitions.

The country's so-called Big Three oil and gas companies spent nearly US$119 billion from 2009 through 2013, accounting for 13 per cent of global transactions in the industry, data compiled by Bloomberg show. That slowed to a trickle last year. And they haven't spent a dime in 2015, watching from the sidelines as oil collapses and the deals add up.

"There's the international race to pick up cheap assets, so the Chinese don't want to be left out," said Gordon Kwan, a Hong Kong-based analyst at Nomura Holdings Inc. "They have a reasonably strong bunch despite the oil price collapse, as well as cheap access to government loans. They are certainly going to take advantage to buy more strategic oil assets, as well as whole companies." Oil's slump to a six-year low has prompted a wave of acquisitions.

http://www.oil-price.net/index.php?lang=en


http://www.bloomberg.com/news/articles/2015-08-30/oil-trims-gain-after-biggest-2-day-rise-since-2009-as-rigs-climb

Looks like the new board are making a big difference,with payments due to start this month and a new reserve update(CPR) shortly.



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