Back to those euphoric days when the GKP share price went stratospheric £4.65p . What caused the dramatic rise was quite simply a rumour that GKP were to be the target of a hostile take over bid. Obviously the take over bid never materialised and the share price was soon in retreat. However, could such a rumour or an actual bid be forthcoming soon?If we look at the circumstances surrounding the rumour. Shaikan was the jewel in the crown and the other assets of GKP had potential. Security wasn't an issue and an export route for the oil wasn't even thought of. The politics were in the background but never entered into the equation. Incredibly, the only factors that really counted were the rumour and the oil in Shaikan. So where are we now? Shaikan is averaging 23,000 bod with 40,000 bod by the end of 2014. Payment mechanism announced by the KRG MNR. Security normalised in K'stan with IS on the run and the Peshmerga in control. Much better relations between Erbil and Baghdad. M & S gone. Export route via pipeline and Turkey. Both Erbil and Baghdad in dire need of cash therefore Kurdish oil will help refill their coffers. Given the above circumstances and GKP's market cap of £711m the company is seriously undervalued and is due a re-rating. The KRG is on record as stating it would like consolidation and there are lots of US big hitters with deep pockets already in Kurdistan.
Simon Murray GKP Chairman: American interventions to help Kurdish Peshmerga so far are met with despair. “They appear to be dispatching arms to Kurdistan via southern Iraq and they are always leaning towards the boys in Baghdad in the disputes between the two sides. That is like sending arms to support the Ukraine via Moscow.”
Mr Murray adds: “They should be moving all their military equipment from Baghdad to Kurdistan. Fortress Kurdistan would give the Americans their best base in the Middle East for years to come.”
He is also caustic about the UK’s decision to join the US-led “coalition” airstrikes on Isis, fearing that the West is heading for another “cock-up”. “Doesn’t the Government understand that your enemy’s enemy is not necessarily your friend?
“Haven’t we learnt from Afghanistan and Iraq? This is a regional conflict between warring religions that goes back 900 years or so. We should either stay out altogether, or put boots on the ground. Haven’t we got the balls to do that?”
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