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.

Its become a worthless stock stay clear.

Canaccord comment:
"Main issues
Debt. Over the next c.20 months, in the absence of debt restructuring, GKP is required to repay principal of $575m and coupons of $89.4m to its bondholders ($325m convertible bonds, coupon 6.25%, due October '17; $250m senior notes, coupon 13%, due April '17). Against this the company has current cash of $51m (mid March) and anticipated incoming cashflow for oil produced and repayments of c.$15m/month.

Shaikan field. With gross 2P reserves of 639 mmbbls Shaikan is a large field, and the initial performance has been good. GKP (WI 58%, op.) has been hampered by its restricted financial resources, which have allowed only c.40 kbopd capacity to be developed, well short of the full field potential. The asset scale and quality are positive for GKP, but that also makes it attractive to the lenders, and we think that has been enhanced with the resolution of holdings and adjustments to the licence terms.

In the near term a lack of investment looks likely to lead to potentially significant production declines. Currently, the committed budget is only $6m, but GKP has put forward plans to maintain 40 kbopd production (capex $71m) or to increase it to 55 kbopd (capex $88m). Unfortunately it is hard to see how the company can finance this given the debt obligations, G&A outgoings, and limited anticipated incoming cashflow.
Valuation and rating
Gulf Keystone is in a very difficult position with limited time to find a solution to the overhanging debt issues. In our view the risks associated with the company now merit an assumption of NPV20 (previously 15%) valuation. Based on the various licence term amendments and inclusion of a number of financial adjustments, our NPV20 central value declines to 5p/share (from 15p). Yet even that assumes asset value which is currently beyond the company's financial capacity to realise. On that basis we set our TP at 4p/share (from 15p) and reduce our rating to SELL from Hold.

Our TP approaches the remaining potential equity value in our view c.2p/share or 5% of projected EV, that may remain if the debt obligations cannot be met."

The rising crude might save them......close to $40 a barrel now...used to be $30....they might scrape through these difficult times...in which case the sp would rebound strongly.....

GENL just been paid for last month. Half the month the export pipe line was shut down...

Desperate times RF.

Another payment received by GKP.....although down on the usual payment....the region had reduced oil exported because of pipe closure......
Still a payment is a payment.....a finance deal may be been worked upon with the MNR.....why else would you keep making the payments?

6p today who would believe it.

<1p in a few weeks definitely on the cards

quite tempting to short even at this low level

I agree its probably worth around 1p or 2p.

another new low today.

dead duck slowly spiraling out of control .......

Intention to utilise grace periods for upcoming 18 April coupon payments in respect of its convertible bonds and guaranteed notes, which expire on 2 May and 3 May

Without additional capital expenditure Shaikan Wells may begin to exhibit natural declines later in 2016

Potential interim investment scenarios aim to maintain shaikan production at 40,000 barrels of oil per day ("bopd") with an option to increase production to 55,000 bopd

Stay clear is my advice.

A bit late for that mitzy! I heard recently that over 80% of shareholders in GKP are private investors, so all of those holders are going to probably lose the lot!

Its a shame Harry they will lose everything on this one.

unless you're short :-)

Sub 4p today is possible when will it ever end.

<1p

Or maybe 50p+

mine has much much shorter odds than yours :-)

Late surge? We will see!

Happy with any sustained rally...........back to £4......:-)