The French foreign legion’s greatest symbol is the 1863 battle of Camerone: when a small unit refused to surrender, their Mexican opponents spared the last few survivors out of respect. No such honour among enemies at Gulf Keystone, where ex-legionnaire Simon Murray has gone as Chairman. The ex-Chairman of Glencore was brought in to the Kurdistan oil producer in July 2013 to make peace with some unhappy investors, and to curb the pay of its lavishly rewarded Boss Todd Kozel. In the event, it is the legacy of the ill-feeling then that made Mr Murray’s exit the price for investors supporting a £30 million share placing. As for pay, before Mr Kozel’s exit last summer, his take-home had duly dropped from $21 million to below $3 million, although only after Andrew Simon, interim Chairman, had taken over the Remco. Meanwhile, Gulf has a breathing space but must still find a way to get paid by the regional government. Mr Simon’s mission is now to deliver a sale of some or all of the company in a deal backed by the whole board. If he can do so, he deserves a medal.
Not so much of a loss at Gulf Keystone. The ex-chairman of Glencore was brought in to the Kurdistan oil producer in July 2013 to make peace with some unhappy investors, and to curb the pay of its lavishly rewarded boss Todd Kozel. In the event, it is the legacy of the ill-feeling then that made Mr Murray’s exit the price for investors supporting a £30m share placing. As for pay, before Mr Kozel’s exit last summer, his take-home had duly dropped from $21m to below $3m, although only after Andrew Simon, interim chairman, had taken over the Remco. Meanwhile, Gulf has a breathing space but must still find a way to get paid by the regional government. Mr Simon’s mission is now to deliver a sale of some or all of the company in a deal backed by the whole board. If he can do so, he deserves a medal.
How does selling to the local market actually work and what do they mean,,,, whenever say local market we are still actually shipping to the port aren't we? And don't we get 50% of local sales? (think Simon Murray said it's actually becomes more profitable to do local sales as opposed through somo)if exxon was to buy it and sell the oil basically to them selves at the port then there would be no need to be paid by the krg and the non payment becomes a non issue,,, just a thought,,
My feelings are that the removal of Murray will lead to a low ball offer south of £2 good for some but not for many. No smoke without fire. Really hope I am wrong but positivity short on the ground here. So much oil but far more manipulation.
The company raised $40 m and change to pay fees. 85,900,000 shares placed Sami question? How much cash does the company need for 5-6 months funding on the assumption it carries on producing but gets no Krg revenue? Answer round figure $40m on the safe side. How long to complete on the deal whats left of the board,are about to recommend? (Murray wouldn't recommend at the low level as he has integrity hence he fell on sword) Similair certainly not more. Ok so at 32p place as many as required to raise that amount of cash. If the motive was anything other than thatt why not place the full 100m available?? Of course placing any more than is just sufficient would unnecessarily dilute the institutions putting up the cash,reducing their ultimate profits when the deal goes through, and we can't have that old chap can we !!!?
Really appreciate your posts and thoughts sharing. I wonder if you or anyone has contacted/emailed the company (AndrewS or JG) on various plausible suggestion that you highlighted, such as JS box, temp. production facilities, setting up the stall right and most importantly communications to the market and shareholders? Again, while I read that you are at London, has anyone attempted to really walk into the office and seeking some serious inquiry? TIA. Please keep up for the informative posts.
The world’s largest oil and gas groups shed more than a billion barrels of reserves in 2014, the sharpest decline in at least six years, according to figures that show their exploration record has worsened as big discoveries dwindle. The latest annual reports for the “Big Five” energy majors – BP, Chevron, ExxonMobil, Royal Dutch Shell and Total – show that proved reserves for the group as a whole shrank to 78.6 billion barrels of oil equivalent (BOE) last year, from a little over 80billion the previous year, the steepest drop since at least 2008. Behind the fall is a substantial decline in the number of barrels added as a result of recent discoveries and extensions to existing oil and gas fields, according to Morgan Stanley analysis of the data. That figure fell 24 per cent last year to 2.3 billion BOE and has nearly halved from 4.4 billion BOE in 2011. Though these figures can be volatile, and depend in part on companies’ approach to booking barrels as “proved” reserves, the deteriorating exploration performance – if sustained – will raise questions over their ability to grow in the long run without making acquisitions. Martijn Rats, analyst at Morgan Stanley, said last year was “really quite disappointing” for discoveries made through exploratory drilling. Big finds, such as Statoil’s Johan Sverdrup field in the Norwegian North Sea in 2010, are increasingly rare. “Discoveries are drying up,” he said. “It’s becoming harder and harder to find oil outside the US. There are great success stories in the US with shale gas and ‘tight’ oil, but, outside that, conventional drilling is becoming less and less successful.” – (Copyright The Financial Times Ltd)
Ok it’s all conjecture. The placing would not be enough to buy all the bonds, but could theoretically take out 20%-25% of which you hold the voting rights. After the vote they are cancelled at face value which goes straight to bottom line.
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