Definitely not me Valju. .....I absolutely depise those utterly pointless and totally pretentious personal number plates. ....and most of the knobheads that own (or most likely don't own ) them. I presume you have a cherished number plate on your Bentley eh Valju. ....am I correct as usual?
I think this statement from the trading update can be interpreted as GKP going on an investment strike.
"The Company is progressing in its ongoing discussions with the MNR regarding commercial and contractual conditions, in particular those around a regular and timely payment cycle, and crude marketing arrangements. Subject to further clarity on these points, the Company looks forward to making further investments to achieve plateau production at nameplate capacity of 40,000 bopd. Accordingly, gross production guidance for 2017 is being set at 32,000-38,000 bopd. Without further investment in the field, beyond maintenance capital, we would expect to achieve the lower-end of our guidance range. "
- No plans towards resolving the export route / pipeline issue. Trucking the crude may have valid reasons but it is a temporary measure after all
- No clarity towards payments / oil marketing. It looks to be the same old story
- No outside buyer would think of entering into this sort of arrangement ( unless they could knock a few heads together of course)
In other words expect output to decline to 30-32,000 bpd (still very attractive though).
Bought a bunch recently to pull my average down - and here we are again heading for a penny (in old money). The equation is: Good news (eg incoming payments) or Bad news (poo falling) and GKP gets slaughtered. Whatever - connundrum is that as our reserves are massive and lifting costs world class minimal - we look better and better to the ioc's as poo swings inexorably under $50 (thanks to the shalers opening their taps) to average out their expensive offshore fields and help balance out their books. Observed before that GKP's production, collection and wellhead equipment are top quality - but sadly (like the reserves) are virtually worthless seemingly. The Ruperts who manipulate the market have no idea what our latent value is - but it will surely count for something, some day. Interesting times ahead then.......hang on in there guys.
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