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Hence why it will be sold shortly to the Chinese.
They need it along with our government to protect the interests. I personally hope the big boys make a very large dividend before they sell us out. Nwo.
This neatly explains why GKP has never been allowed to be sold too.
Because the suspicion is GKP is not a company, but a trading vehicle for the KRG and the ruling families to pilfer Iraqi Kurdistan's oil wealth.
Having assets elsewhere would put at threat Shaikan's sovereignty, as the 'company' would have greater, or full, autonomy to sell all the assets/PSC's via M&A to potentially less favourable, more credible, oiler or IOC. As a single asset entity in a sole region it is captive to its masters and by design.
Whilst I’m long in GKP, Kurdistan is a basket case at the moment and the rewards do not align with risks. It’s not immediately clear why GKP would invest $400-500m on the next development phase when there are plenty of gas/light oil opportunities elsewhere with decent leverage to the oil price.
You guys are hilarious. Management doesn't get a break from you even when they do the right thing. Have you read any of the company's investor presentations? The company has a plan beyond 55k. Some of us remain at this stage unconvinced that it will produce adequate returns but they do have a plan. That plan will adapt to circumstance. And over the course of 2021 they should raise production circa 28%. They can't get beyond 55k until 55k is achieved. Give them a break on operational strategy. On financial strategy, yes they're running a grossly inefficient capital structure. Buy the stock back. With oil in the 70s all is good for quite some time yet.
A lot of investors buy based on high dividends. If GKP pay a consistent divided of say $100m then sp will go up. The trouble with management is that they have no strategy beyond 55kbpd. At this stage no one has an idea of what happens next. Sitting on a large cash pile is not sustainable. Hence the need for thumb screws.
Yeah, I've always felt that while GKP has a lot of cash to potentially give back to shareholders, both buybacks and dividends make sense.
The buybacks work to increase the dividend per share for those who wish to hold and for those who wish to sell the buybacks create a matginal buyer in the market.
I actually agrued that GKP should have been buying back stock as soon as their downside hedging was in place, but heyho, they didn't.
Buybacks alongside dividends make most sense to me.
"Share buybacks proved to be a failure last time round as sp sank while they were buying. Give us the cash."
They did give cash back with the buybacks. YOU (and/or others like you) just declined to take it.
Totally agree FH1 - the junta must be having sleepless nights trying to think of how next to screw us - new wealth tax perhaps, or compulsory repossession of the asset due to not being technically capable of meeting production growth promises.... or why don’t they just buy us out (for a ridiculously low sum of course) as their’s will be the only offer allowed to see the light of day ?
Our BoD will be ordered to accept the bid in exchange for their eye-watering termination bonuses I presume.
Really strange that even DNO don’t appear to want to pick us up at sub-firesale prices.
FH1, what happens to the share price is not necessarily a measure of how successful the buy-back or dividend was.
Since the last dividend the share price has dropped more than the dividend, does that necessarily mean it was a failure?
When you wrote, “ Share buybacks proved to be a failure last time round as sp sank while they were buying.”, couldn’t that be a positive to the LTH?
It meant they bought more shares back with the fixed amount of money than if the price had risen. Thus further increasing the concentration of the value of the company in the hands of those who did not sell into it.
Serious cash machine here. If get average $25m every month then that will be $300m a year. With no plans to expand then all money should be returned to shareholders. Share buybacks proved to be a failure last time round as sp sank while they were buying. Give us the cash. Time to visit HQ with a thumb screw equipment. Lol.