40k per day is approx 300m per annum as per Simon Murray. Also possible to reduce trucking costs eminently PF1 & PF2 can do more than 40k with debottlenecking. No further expansion until nailed on payments from KRG. Lowest production costs in the world. What's the opposite of a perfect storm ? Trouble is too many are holding with a high average and don't believe the brave new world of GKP - most are mid 50s early 60s and life has beaten them hence the constant boring nauseous bland sh¥ te.
Make no mistake we are heading in the right direction.
If you haven't already - read 'The Big Short' by Michael Lewis. As you probably know, John Paulson's hedge fund, by using credit default swaps, bet against the U.S. subprime mortgage market. Paulson earned over $4 billion, his net worth - $13.5 billion. In cahoots with Goldman Sachs they also hand picked the crumbiest bundles of mortgage backed securities you could imagine and took the other side of the trade as they were sold on to unsuspecting buyers! http://www.sec.gov/news/press/2010/2010-59.htm Now that kinda shorting and deception, involving government (sachs) lobbyists is just plain wrong! FFS Bush put ex CEO of GS Hank Paulson who had worked at GS since 1976, as United States Secretary of the Treasury, and he was the man who oversaw the bailing out of the US financial institutions! You couldn't really make it up! Anyway, no-one could value these things, so Goldman set the price as Market Makers once they'd palmed them off, and started the whole tumble, as of course they set the price lower than every other Wall street bank and scared them all shizless as they had to re-juggle the value of assets on their books, or dump the toxic hot potato ASAP! Paulson(John) and GS sat back and watched the world crumble. Goodbye Lehmans, goodbye Bear Sterns, goodbye taxpayers money! However it burst the bubble of Greenspan's invincibility and made Gordon Brown with his "no more boom and bust" crud look like complete fantasists, these so called great economists didn't have a clue! Dumb, dumb, dumb! Cheap money running wild. Free markets - No regulation! Somehow, bubbles do have to burst, but institutional short selling on that scale is ridiculous and drives things to bargain basement levels, value becomes meaningless. Just like a shareprice in the doldrums. You're right Andy, fortune favours the brave - sit it out and it will come good as everything is cyclical. One day, it'll turn - institutions will want to buy, and the shorters on the other side will get squeezed so hard they won't know what's hit them. So be contrairian and seek value. You bought some at 49p, that's very good value. One thing though. Spread betting short for £20 a point ain't really gonna effect you. It's a bet. That's not how the big guys do it - it's derivatives and ETF's and CFD's - financial weapons of mass destruction using leverage, flooding the market with shares or commodity quantities that simply don't exist. When the market turns though, well, we can write a book called "The Big Squeeze". Until then us mere mortals have to grin and bear it. You can't get mad at the few quid a point guys on a spread bet though, it's like going to the bookies and being ****ed off at someone 'cos they bet Man Utd will beat Liverpool when you're a Liverpool fan. Now co-ordinated attacks by hedge funds or investment banks, or co-ordinated price fixing Libor, Forex etc....scumbags - 'Too big to jail' It doesn't get any worse does it! Hang 'em high! http://youtu.be/9pR
Hang in there bud as if can change very quickly........I borrowed Inscurable's sebo and hovered up a load of Afren last week at 33 and sold yesterday afternoon at 46. Am now breakeven with a decent average on Afren and an investment level that I am more comfortable with. Roxi and Genel are others in my portfolio which I'm comfortable with. I just need GKP to bounce to 1.10 and will derisk by approx 50% as I am holding too many to be honest. Really think patience is the key and when I hear all the boring fookers moaning like crazy it just reinforces it.
I gave up telling folk, you were buying in after the CC, I was selling. JG held a investor conference after the CC were he stated Gkp needed $650m and 20 odd wells to get to 100k bpd, the CC was a smoke screen to how far we were behind the curve. When Genel were closing in on 100k bpd with cash in the bank.
I appreciate the kind words and I had chapter and verse on the behind scenes nonsense but I started to sound like a broken record hence my mini sabatical.
Ignoring the past and JG was part of that, it is refreshing to see the company being reported in a positive way. The company was being dragged down by the controversary and greed surrounding the previous CEO.
With the way the company is now being reported and progressing does anyone honestly miss him?
I believe if JG delivers 40k bpd it will be a huge milestone in regaining the markets confidence.
But... The bonds are still an issue, and we NEED regular payments.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.