Gulf Keystone Petroleum is an independent oil and gas exploration and production company. It was founded in 2001 by UAE, Kuwaiti, Saudi and US private equity. It is now operated in the Kurdistan Region of Iraq.
Please explain what Good News means, it does not apply to this outfit.
from the darkside is posting details of a new KRG/ICG deal !!!! Getting ready for the F1 qualifying..... come on Lewis.
RE: BIR issue
"The Convertibles are irrelevant, because they convert into equity..." Not necessarily. Only if the sp goes up a fair bit from where it is at the moment. I explained this a while ago, but in case it was missed, I'll repost. "Those who hold the convertible bonds have an option to covert their loans to equity. It's just an option, not automatic. If they don't convert to equity, it's the same as the most recent high yield bonds - a debt that must be repaid. The terms for conversion to equity are set out on GKP's website: at a 27.5% premium to the VWAP on 4 October 2012, giving a conversion price of $4.39. No one's going to convert their convertibles to equity at the current sp level. If they did, it would mean that for every $4.39 worth of convertible bond debt the bondholder has, they would receive one share worth 36p. So it would only make sense for the lenders to convert their CBs into equity if the share price is higher than the conversion price that was fixed at the time of issue."
Have been trying not to look on here .Too depressing managed three weeks so far . Been invested here since 2008 and several thousand in the red . Anyone got any good news
This was covered in the CPR. As at 31 December 2014 the KRG owed Gulf a net $252 miillion. In addition, there is over three quarters of a billion dollars of additional recoverable costs net to Gulf. So the total sum due to Gulf, though not all of it is overdue, is IN EXCESS OF ONE BILLION US DOLLARS. The Swami has set that out, crystal clear, for every dog and his cat to read. The monies already overdue EXCEED THE $250 MILLION BORROWED BY GULF ON THE BONDS. The Convertibles are irrelevant, because they convert into equity. In effect, Gulf has NO DEBT. And the assets, at the current share price, are IN FOR FREE to use analyst-speak. Swami Zouari is very obviously fully aware of this.
When was shaikan classed as a commercial discovery? Shaikan Field Development Plan was approved in June 2013 How long do the KRG have to exercise the BIR? I would say they expired and the BIR are owned by GKPI Once the exercise of the BIR take place the KRG if they exercise the BIR, then they are responsible for paying 25% of all the costs from that point. Are shareholders carrying 75% of the Shaikan Costs of development and associated costs (etc) Why as the CFO allowed this to continue , its a drain on funds , and if GKPI had sold the BIR as the KRG MNR did not exercise them, then surely the CFO should be trying to keep the costs down and off load the 25% BIR-at worst the BIR should be awarded to GKPI ASAP. Its time in my opinion the CFO and Board act to recover 25% of all costs since the BIR have not been exercised by the KRG MNR , thus the KRG MNR have broken another legally binding contract.
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