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Obviously these guys are playing with other people's money !!
Will gkp drop tomorrow 5% absolutely it will but being short is a brave call ..
The RNS told you not to be ..
Just winding you up P...:)
Look at the size of the after hours trades!!!!
Putting everything into the pipeline is excellent news, raking in about 350K dollars per day as their share is also good numbers and significantly changes things with this stock .
I would support company expenditure in additional tankage which normally has a water draw off facility.
If we are supplying a refinery direct they should have de-salting and water draw off facilities as standard.
Gone now are a lot of going bankrupt worries and more likely to see a fair bit of company wealth while we await resumption of main export flows.
The fact that GKP are now getting customers for significant quantities of crude will be a shot across the bows for those hoping to squeeze extra monetary advantage by crude exports to Turkey. Things are most certainly looking up for the patient shareholders here , and I'm happy to beholding a strong position. Going to be a good end to this year.
what we really need is the owner of the refinery to be a shareholder in gkp and bulletproof wrt kurdistan politics. maybe the uhnwi could give him a few to bring him into the game.
transfer our 36% to our account.
transfer mol’s share to their account.
transfer the krg’s share to our account and we divi it up with mol until the missing payments are wiped out.
job’s a good ‘’un - as explained in “the art of co**** finance in corrupt countries” , available on kindle 99c today only.
"and offset against year old debt (!)"
Why would they offset something they're entitled to against something they're owed? They're due both.
The only response to that is a "Huh?" or a "Duh!". You choose. :)
That.
"and not relinquish it "
Not relinquish what exactly? They only get the Contractor share paid to them.
Have you looked at the report Deloitte does for the KRG? Note 10 (the link to this report has been posted here before)
Something haunts me about the delinquent $151m owed to us:
Has anyone thought to query where that money evaporated within the KRG (and send the bill + compounding interest) to the benefactor - as it sure as flux wasn’t the general population ?
The equilibrium referred to is the delinquent debt.
As to repayment instalments, that may be the way it pans out, but nevertheless GKP should preserve its cash and not relinquish it under agreements that are currently completely collapsed in extremis.
Straycat
"They should keep the advance payments and offset against year old debt (!) until there is some equilibrium restored. . "
Now they are only now being for the Contractor's share, as calculated per the PSC. GKP then pay MOL their share.
The $8m that was owed to the KRG has been settled in off-take of oil. So they keep the $8m which is good.
Cash balances haven't changed materially since end of August.
$151 million remains owed to GKP by the KRG. (I expect this to be paid only in installments once the pipeline is reopened for export sales.)
Those are the facts (except in parentheses where I have noted my expectation).
From the RNS:-
“Gross average sales are currently c.33,000 bopd and GKP is striving to increase sales volumes while prudently managing the start-up of wells that have been shut-in for several months and avoid traces of water. However, the continuity of local sales remains uncertain.”
Just because they have opened up some extra wells to meet the demand, it does not necessarily follow they have opened up EVERY well in anticipation of future events.
Given the evidenced uncertainty of the local market and the long running export pipeline dispute they will be treading very carefully IMO.
Better to miss a short term opportunity to sell production, as opposed to putting a well at risk of damage by flipping it from closed to open to closed.
They seem to be setting up a MIN MAX operation, maximising the production whilst at the same time minimising the risk of damage - careful balancing act.
I wonder which one of the pre-closure wells they will start up last if they want to avoid traces of water :)
Any discussion on Board cashflow behaviour must be perdicated on the facts.
And they are:-
1) GKP haven't been paid for twelve months and previous to that their have ben several serious breaches of payment trust;
2) GKP are owed $151m with no indication as to when that delinquent debt will be repaid, apart from vague statements of intent by the KRG (who are no longer the principal arbiters in this dispute);
3) At no point have GKP been offered any way forward under the PSC, and that contract is now under threat due to forces beyond GKP's control;
4) there is no specific signal for repayments beginning anytime soon...not by any of the acronyms in qustion;
So GKP have found another way. One that preserves their precious cashflow, enables them to manage their supply lines, manage their receipts and therefore manage their future for now.
No help from any of their contractual allies.
I say again, the Board have a duty to their shareholders and it's a primary duty.
' We are receiving advance payments into our UK account for it's net entitlement....'
The key words are 'advance' and 'for' and 'net'., i.e. we've collected the money up front (in advance); 'for' (to facilitate); 'net' (so GKP finally have control over whether/when GKPe get paid.
They should keep the advance payments and offset against year old debt (!) until there is some equilibrium restored. .
What they mustn't do is show more weakness...and I read that RNS statement as their commitment to sustainable cashflow and another example of the soft power that will 'help' the acronyms understand,
If I'm right in my reading/interpretation, then GKP will keep the advance payments and offset them against MASSIVELY delinquent debt.
Otherwise, what's the point? If you can't get paid, and that's been a frequent difficulty since inception and production, then what's the point?
The payment issue has now come to a head. And not before time.
I just hope AKIPUR remain solid, but because of their relative Balance Sheet issues, I don't know that will.
Finish , than i expected , did it go into auction at the end £1.14???
Indeed. That suggests local demand is at 60kbpd :)
So according to the RNS and reading various Media comments, GKP are adding $4-5 Million to the balance sheet each month going forward, if it continues like that while the pipeline remains closed thats a nice cash pile towards the end of 2023,
Though if the pipeline opens up the sales through to Ceyhan will dwarf that
is that a Ramp?? oops !!!
"@PUTUP
You are correct."
Yes I know I am. And likely for the same reason you do. ;)
Today , no amount of Ramps would have taken this here, £1.10 finish, GKP is in a very comfortable place ATM , imo
lets hope the Political Situation improves going forward for the next move on GKP
@FH1, “ Not a lot of comment on this part of the RNS. Why would GKP be starting up wells if pipeline wasn't going to open. ”
Maybe they couldn’t meet the increased local demand that we were all hoping for from those wells that were opened first :)
FH1,
Howdy Folk's
"Not a lot of comment on this part of the RNS. Why would GKP be starting up wells if pipeline wasn't going to open..."
Exactly, can cause a lot more damage by starting up a well unnecessary, then having to shut it in again rather than leaving it shut-in.... yee-haw
aimo & dyor
Great RNS OUT Today for GKP AND WTE....expect a rally on both this afternoon
Sorry Newdealz, u shoulda bought last week.