JP Morgan added 1% over last two weeks *hence the prior dip and....17 Sep 2019 18:03
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Macquarie started coverage of Iraq explorer Gulf Keystone Petroleum with an “outperform” recommendation and 315p price target.
Cash from Gulf Keystone’s 80-per-cent-operated Shaikan field in Kurdistan has transformed the company’s balance sheet while regular payments from the Kurdistan Regional Government since 2015 should provide the confidence to invest in the infrastructure needed to support a long-term target of trebling production, said Macquarie. “We flag that Shaikan production has been largely uninterrupted, even at the height of the regional conflict with Isis. In addition, at times strained relationships between the governments in [Kurdistan’s capital] Erbil and Baghdad have not resulted in any operational issues for Gulf Keystone.”
Having cleared out its boardroom in 2014 and 2015, Gulf Keystone has “a high quality management in place and we believe any lingering perceptions around the previous team and culture should be dismissed”, Macquarie added.