Can a genuine fellow investor please give a view on this question..................
Regarding the Data Room, do we presume that the potentially interested visiting parties are basing any bid they may make on the previous CPRs or were they/have they been given an indication of another method of estimating the value of the assets? If they are using the last one published (to us), surely it will not reflect the true value. If you were trying to sell a company, would you not ensure that the data was up to date? And, if it is, would that not imply that a new, unmentioned assessment has been already arranged? I really don't know but thought it worthy of some opinions. What do you think?
I guess the question is why did Gulf Keystone issue exactly the correct number of shares to allow DNO to value the company at GBP 0.99p if GKP doesn't intend to sell the company to them? It looks a lot like like they're already working together.
"DNO's valuation of Gulf Keystone following the Restructuring is USD 300 million, equivalent to GBP 0.99 pence per common share in issue following completion of the Restructuring, calculated on the basis of 22,942,956,717 Gulf Keystone shares following issue of the New Shares, an exchange rate of USD/GBP 0.7571 and an average DNO share price over 30 days."
Gulf Keystone Petroleum Ltd (LON:GKP), was loved and loathed in equal measure by shareholders who favoured the stock due to its exposure to northern Iraq - touted as one of the last great onshore ‘easy oil’ deposits. At the same time it was scorned by investors due to its accumulating debt now totalling US$100mln, the aggravation in the boardroom, the lack of corporate governance and eye watering executive pay.
Yet DNO’s US$300mln cash and shares bid for the UK group may not be a dead cert according to Sam Wahab, Cantor Fitzgerald Europe's director of oil and gas equity research. The success of the company and the investment opportunity relies on the fortunes of the political landscape in Kurdistan. Wahab agrees that from a geological level there is ‘easy oil.’ The cost of drilling and producing, says Wahab is “very low and the ease of doing business on the ground is good.”
What isn’t easy is procuring regular payments from the Kurdish regional government which is releasing monthly tranches of US$12mln on an intermittent basis, and until that is sorted “it’s not looking particularly commercial at this stage.”
Politics aside the oil continues to flow. 40,000 barrels of oil are produced a day and Wahab calculates this could increase to 55,000 a day in short order.
Ccc on iii. Talks on oil agreement. The interesting thing for me is the order of things, that the icg has agreed to talk to the krg. IE the krg instigated it and are keen. What with the imf's stipulations, things could, should hot up.
FYI, according to Mr Zahawi's disclosures on https://www.theyworkforyou.com he owns (or owned) Genel shares in 2013, and also did work for Talisman Energy & Afren in 2012 & 2013. He also travels regularly to the Kurdistan Region, with flights & other expense paid for by the KRG.
Ignoring any domestic Kurdish political motives behind this article, there are plenty of facts that stand up herein, and are on the record. The great shame for Gulf Keystone (GKP) shareholders, many of whom have been invested in the company since early 2009 before GKP even had success at Shaikan, is that their support for the company has led to support for, & a far greater awareness of, the Kurdish people and their aspirations.
We all remember well the 'good old days' of the struggle with Maliki & Shahristani etc, and endless rounds of talk and broken deals, and the KRG had our voluble support. And most of us understood the hardship and difficulties you have all endured as a result of daesh, the withholding of budget payments by Baghdad, and now lower oil prices. We could understand with and sympathise with that, and therefore accept that GKP would not be paid its contractual dues immediately. However, the lack of payments dragged on for far too long, forcing GKP to borrow to remain in business. Now those debts are being called in, and as a result shareholders are facing losing 95.5% of their investments to the creditors (bondholders), among whom are KRG, UAE, and UK entities acccording to the International Business Times.
The oil produced by GKP was sold by the MNR for hard $s, only possible because of the original investment in exploration & development by GKP shareholders, yet 100s of $millions are still owed to the company, one of our best licenses has been handed back as GKP has no cash to develop it, and now shareholders face losing almost everything. Great advert for business in Kurdistan, not.
GLOBAL ENERGY NEWS | Sat Aug 27, 2016 5:22pm IST Exclusive - Iraq plans to sell oil through Iran if talks with Kurds fail By Stephen Kalin | BAGHDAD
Iraq's government would consider selling crude through Iran should talks with the autonomous Kurdish region on an oil revenue-sharing agreement fail, a senior oil ministry official in Baghdad told Reuters.
Iraq's State Oil Marketing Organisation (SOMO) plans to hold talks with the Kurdish Regional Government (KRG), possibly next week, about Iraqi oil exported through Turkey, Deputy Oil Minister Fayadh al-Nema said in an interview on Friday evening.
"If the negotiations come to a close" without an agreement "we will start to find a way in order to sell our oil because we need money, either to Iran or other countries", he said by telephone.
Iraq, OPEC's second-largest producer after Saudi Arabia, depends on oil sales for 95 percent of its public income. Its economy is reeling under the double impact of low oil prices and the war against Islamic State militants.
The Kurdistan region produces around 500,000 barrels per day (bpd) on its territory and exports those volumes via Turkey. Baghdad would not be able to reroute those volumes to Iran but could order shipments of some 150,000 bpd via Iran that are being produced in the nearby province of Kirkuk.
An agreement between Iran and Iraq could function in a similar fashion as oil-swap deals Tehran has had with Caspian Sea nations, according to an oil official who asked not to be identified.
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.