Member Info for BroadfordBay

Good morning Cookie, I trust you and your family are all well?
GKP has had a good run lately - up 100% since Oct-20 - and good luck to those who profited from the rise; it should not be assumed that the rise will continue. Should Brent take a dive the SP will be slaughtered rather quickly.
Apart from field performance- and water issues (which are being hidden under the carpet), the KRG threat of forcing the company to deal with the gas issues in their (KRG) timeline is a significant danger, as the company does not have the cash to go ahead and do it PDQ. Holding back and waiting for KRG to pay their outstanding sums will increasingly be interpreted by the KRG not as good commercial sense but as a threat IMO.

Re your remarks about the Incontinent Rampers, yes, that's why I continue to post. How people interpret those posts is entirely up to them. There are many liars and fraudsters posting here and on the other board who try to convince you they are the good guys, that negative postings are "paid for", that they have a Lifetime's Experience in the Industry and will put you right and so on.
Caveat emptor...

It has been reported in several sources that the KRG owes a great deal of money to the various operators - GKP is not alone here.
Erbil is enters 2021 with a massive $850M in receivables owed to foreign operators for missed payments between
November 2019 and February 2020 (MEES, 9 Oct-20 ). While subsequent payments have been reliable, it is far from clear how the KRG will be able to pay this down any time soon.

The auditors decision to support the CEO's argument that "these invoices WILL be paid", leading to recognition of submitted invoices as "cash received", is now standing upon very thin ice.
We shall see...

2020 Sales revenues received so far amount only to $55.7M.
Dec payment remains outstanding - say $14M , so total receipts of ca $69.7M.

The payment of Nov-19 thru Feb-20 ($73M?) cannot be assumed before EOY results.
It is very, very doubtful if the KRG could decide to settle all of one company's outstanding payments at one go - the outstanding sums are far too large; a drip feed of small monthly amounts is what should be expected and even that is not guaranteed to be announced before putting the accounts to bed.
We should expect the accounts to be qualified by the auditors.

Before you get too excited...

I found the Ops Update to be rather negative.

Take the total output - now 42Mbopd, from 5 +5 wells.
PF-1 is handling 27.5Mbopd so PF-2 (serving the Eastern side of the field) is handling only 14.5Mbopd.
The Eastern side of the field appears to be suffering rather badly but we are given no explanation as to why.
Water issues.

Good morning,

Atrush (adjacent to Shaikan, to the North) started production in July 2017 and current output is over 46Mbopd.

Shaikan started production in July 2013 and current output is about 39Mbopd.

Management.

The Total crude oil being produced in the Sarsang block is 36°API - 41°API.

The Shaikan crude currently being produced is 17°API - and getting heavier by the day.

There is a world of difference between the value of these 2 crudes; there is absolutely NO value read-across.

"DNO were not however holding the stock as a hostile take over defence.
GKP were."

Only your assumption - nothing to this effect was ever even hinted at by the company.

You are severely deluded, untrustworthy and your motives are anything but well-intended.

Oslo, 8 September 2020
DNO ASA, the Norwegian oil and gas operator, today announced that the reduction of its share capital by cancellation of all 108,381,415 own shares held by the Company, approved by shareholders at a 28 February 2020 Extraordinary General Meeting, has been completed.

Friendly deal done...?

Laugh out loud.

No deal for GKP - only more pain.

The same rampers, wearing different clothes, are trying to dupe you again. with their takeover nonsense.

Back on 20th Feb 2012 (when the stock hit 450p in old money or 46,500p in new money), the Brent price was $121/bbl and the rampers were shoving Exxon’s alleged interest in buying GKP for $7Bn - $8Bn down everyone’s throats.
The company denied there was anything in this, as did Exxon, and Mark Leftly’s best efforts came to nought.

Todd managed a smile, however, as his take that year was $13.6M plus another $9M in deferred payments.

The company also claimed (in their 26th Jan-2012, LSE O&G Investor Forum) that:
- they planned to build a 440Mbopd pipeline from Shaikan to connect with the Ceyhan pipeline,
- they had a clear path to a daily production of 400,000 barrels,
- they had incremental Billion barrel potential across three other blocks.
A lot of HOT AIR was produced around end-2011 thru Summer-2013, when the brown stuff finally hit the fan.

Do not be fooled – there is NO imminent takeover. The SM chap does NOT have your interests at heart – he only has his own trading positions to protect.

Do not be fooled.

Sorry,
that should of course have been 21 years and 8 months to expiry of the PSC.

Always assuming of course that the final 5-year extension is requested!

Depending on just how capital hungry your field has become, you might want to reconsider your options.

Still, the Chinese are buying GKP tomorrow aren't they, so maybe there's no need to be concerned?

GKP made a Declaration of Commercial Discovery on 1st August 2012 to the Shaikan Block Management Committee under Clause 12.6(a) of the PSC.
The declaration was made in respect of a Crude Oil Discovery (with associated natural gas).

The Development Period is defined in Clause 6.10 of the PSC as 20 years, with an automatic right to a 5-year extension.

If commercial production from the production area is still possible at the end of its development period then, upon request, the contractor shall be entitled to a 5-year extension under the same terms as the those provided in the contract. Such a request must be made in writing at least 6 months before the end of the development period.

So, PSC expiry either 1st August 2032 plus 5 years, meaning 1st August 2037.
OR
Expiry 1st August 2037 plus 5 years, meaning 1st August 2042.

I believe the person going under the name of a previous GKP director, the one with Sino connections, has been banned for a ridiculous amount of spamming on the other board and has now turned his attentions to this LSE board.
His contribution is zero, and he has been spouting the same takeover- and Bermuda corporate law nonsense for years.
Be warned...

The company does not have $150M cash at the moment - the sum is closer to $130M.

This was posted 2 days ago on the advfn board:
ghostrider293 23 Sep '20 - 08:24
"Does anyone know who the patriotic Irishman is ?"

And this was followed this morning, again on advfn, by:
highlander7, 25 Sep '20 - 08:40
"He is not one of the "regulars" posting under an avatar. But posts on his own behalf.
We currently have an IP address and will keep you posted when we locate it."

Be VERY careful in whom you place your trust on these boards.

I believe the move to oust the chairman is already complete but, in order not to disrupt the market in GKP shares, his departure announcement is being put off until the new CEO is officially introduced.
I believe replacements for both positions have already been decided.
Expect then a burst of SP optimism that things will improve...only for the realisation to kick in rapidly that nothing has really changed, or will change.
GKP is a trader's share, it's no longer one for "long-and-strong" LTHs.

The Constitution of Iraq, approved in Oct-2005, states:
Article 140
First
The executive authority shall undertake the necessary steps to complete the implementation of the requirements of all subparagraphs of Article 58 of the Transitional Administrative Law.
Second
The responsibility placed upon the executive branch of the Iraqi Transitional Government stipulated in Article 58 of the Transitional Administrative Law shall extend and continue to the executive authority elected in accordance with this
Constitution, provided that it accomplishes completely (normalization and census and concludes with a referendum in Kirkuk and other disputed territories to determine the will of their citizens), by a date not to exceed the 31st of December
2007.

Oh dear indeed...

DNO did it - or should that be "had it done to them"?

Oslo, 24 August 2017 -- DNO ASA, the Norwegian oil and gas operator, has been assigned the 20 percent interest in the Tawke license held by the Kurdistan Regional Government as part of a landmark settlement of outstanding receivables owed to the Company for past crude oil deliveries. Following the settlement, DNO holds a 75 percent operated stake in the license containing the Tawke and Peshkabir fields with combined proven and probable reserves in excess of 500 million barrels and production in excess of 100,000 barrels of oil per day.

In addition to the 20 percent interest, the Company will receive three percent of gross license revenues each month from the Government over a five-year period. The settlement is effective as of 1 August 2017.

DNO has settled its claims for all outstanding Tawke license receivables from the Government and the Government has exercised its Tawke license audit rights to its satisfaction for the period up to the effective date and has no adjustment claims. The Government has also discharged DNO from certain payment obligations including production bonuses, license fees and a USD 150 million water purification project that is no longer required by the Government.

The removal of these liabilities and the transfer to DNO of the 20 percent interest and the right to the three percent revenue stream will bolster the Company's balance sheet and future cash flow.

Short & curlies springs to mind...

You are not up to date re the Sinopec connection.

Oryx is now owned & run by Barzani's dear friend Baz and his "privately owned" Zeg vehicle.

Amid all the corruption- and self-enrichment stories that generally get posted, it's good to remember that most Iraqis are just like us - trying to get on with their lives, educate their children and live long enough to put their feet up at the end of the day.

As the cradle of civilisation, the Land of the Two Rivers has a rich culture stretching back thousands of years and its good to see that, amid the poverty and challenges facing ordinary folk, an appreciation of that cultural history is being offered with this film festival - which is free and online each evening at 18:30 UK.
https://iiffestival.com/programme/