Member Info for highlander1970

right now, nothing at all is being paid and there are missing payments from Nov through to February that will not be paid until later in the year.

"Highlander1970. Ranting and raving 24/7 about JF is not the answer"
I'm not the one who throws a hissy fit and types headers in caps.

You, on the other hand, are the one who finds it necessary to try and defend the hapless miscreant of a CEO whenever someone points out a few home truths. Why is that?
Are you part of the DFKing team that Ferrier used during the shareholder robbery?

We can agree on one thing though...

"Yes those Notes do cost money"

Which flies in the face of "We continue to focus on strict financial discipline and maintaining our strong balance sheet."

i.e. He is lying to our faces whilst continuing to throw away shareholders money keeping his overlords in the city cosy.

But I'm glad we agree that he is lying at least.

Debt is debt, no matter which way you try to fluff it up to support the incompetent, lying CEO
It is at 10% coupon when current bank rates are at all time lows
By the time that particular debt is paid off in 2023, it will have cost (since 2017 inclusive) $70m in interest alone.
Total cost of that debt is 70%
Yet he voluntarily keeps this debt on for his cronies in the city whilst sitting on buyback shares and dishing out company money in form of dividends (which of course goes 85% to the city via shareholdings)

And all this with ever decreasing production guidance with the ever increasing cost of producing less and missing targets.
I also note that there is to be a new FDP supposedly to be submitted, will he even achieve that?

Ferrier is a woeful failure of a CEO and needs to get out.

The gap between the values of Brent/WTI has narrowed to less than $1 for the first time since shale took off.
Could be be seeing the re-balance of the pricing before it takes off?

Jon Ferrier is a lying toad who has engineered huge payouts for him and his cronies at the cost of shareholders.

The company has gone backwards since JF was installed
He has p****d up the wall £1Billion plus of shareholders money and has lined himself up to be a multimillionaire in the process.
No maintenance operations, no production growth, obviously no dialogue with the only customer, no attempt at debt reduction (quite the opposite - very happy to give away company funds/assets), no dialogue with shareholders and if there is it is riddled with lies, no attempt at reducing company liabilities where the debt level is over 50% of current MCAP on a 10% coupon where LIBOR rates are the cheapest in history, ever increasing boardroom presence with inflated salaries and bonus schemes for ZERO achievements (£750k bonus within 3 MONTHS of joining the company!!!), no attempt to diversify the company to enhance revenue stream (he either is under instruction to do nothing or is too stupid to put a plan together) and many many more failures.
Jon Ferrier is a liability to GKP accounts, nothing more, nothing less.

https://twitter.com/OffshoreIreland/status/1262647103647617025

One thing that this crisis has highlighted is just how dependent countries are on others and it has not been for the good.
The EU is starting to eat itself from the inside with Germany being prosecuted by the EU.
Energy dependency is going to take a higher priority as Ireland's gas is running out, tankers are floating around at the moment full of excess crude oil.
As the world wakes up from the pandemic, the demand will surge and it will surge big.
IMO, countries will industrialize within their own borders to ensure future supplies, this takes energy, manufacturing will beget more manufacturing and renewable energies cannot supply that. Oil and gas can.
If it is played right then Ireland can gain hugely by getting Barryroe developed and on stream through existing infrastructure in a very short time. Swift enough to head off the gas problem and put energy supply concerns on the back burner.
There has never been a better time to do it. Supply concerns are alleviated as there is plenty service equipment lying around. Long lead time items will save companies and the pricing will be the keenest seen in decades.
The clock is ticking and I reckon some decisions will be made pretty sharpish before the industry realises that they can't just turn the taps on again once this glut is over.

Fully agree with Bugsy

Ferrier is the sole reason for the mess GKP is in today.
He sold the company out to the city and the cronies, paid to get rid of assets, failed to action recovery of funds owed (other companies took the KRG to court and won, getting their funds paid), failed to action the production increase in a timely manner (still we are waiting), never maintained field productivity (left it alone for years), filled the boardroom with troughers who appear to have done absolutely nothing for their exorbitant salaries (3 months in the seat for nearly £750k!!! How is THAT justifiable???)

The list goes on and on and the buck stops right at Jon Ferriers doorstep.

the "close to retirement" comment is mine due to the fact that he is 62 this year so it will be pretty forefront of his thinking and is not due to anything I have heard or seen.

I agree that there has to be a foregone conclusion here and I think that it relates to article 140 but our current caretakers are woefully incompetent.
Maliki was the instigator of a lot of issues regarding the Kurdistan region and he was the key protagonist to the uprising of ISIL as they wanted to remove him from power. The rest of that story is history as we all know.
During that time the regional divides were strengthened and trust (such as there was at the time) was diminished further.

Not much has changed since then politically but with the new people in place there is refreshed hope that and oil law may finally be passed but I wont be holding my breath to see the outcome any time soon. I would love to be wrong on that front and wake up one day to an oil law agreed, signed off, implemented AND being adhered to.

We'll see

So, to conclude

Jon Ferriers total achievements whilst at GKP has been that he has decimated the MCAP from £487M down to £141M today (lets not forget he has managed to p**s up the wall in excess of £1Bn of shareholders money in between) and has managed to take the production figures from "in excess of 40,000 barrels of oil per day" to "current production of c.38,000 bopd."

Quite an achievement there Jon, I know you are due to retire soon (the sooner the better) but even you must be embarrassed with THAT track record!

The incompetence and laziness of this infestation of a BoD cannot even get the history of the Shaikan field correct.
On the website (which appears to have been written by a child) it states that the Shaikan field was discovered in April 2009
https://www.gulfkeystone.com/about/history/

Shaikan was spudded on the 27th April 2009

https://polaris.brighterir.com/public/gulf_keystone_petroleum/news/rns/story/rd0vd4x

Such is the value creation policy that Jon Ferrier has employed, he has managed to get the MCAP of GKP to a value today of £141m

On the 13th Nov 2009 when there was a rights issue, the company had 488,259,138 shares in issue, trading at just over £1, the issue price of the drawdown shares was 99.6p giving a MCAP of just under £487M before the extent of the Shaikan discovery was known.
https://polaris.brighterir.com/public/gulf_keystone_petroleum/news/rns/story/x2o5y7r

A few days later the final discovery RNS was released giving details of the lower well tests carried out. Now bear in mind that the FDP is to include production from the Triassic which will allow the Triassic reserves to be booked to the bottom line (hugely understated as they are) so why is Ferrier not getting on with a Triassic well?

From the RNS

"Overall, the Shaikan-1 well has discovered over 1000 meters of oil column and over 200 meters of net pay. Thus far Gulf Keystone has tested less than 30% of this net pay. This 30% of net pay demonstrated the capability for 31,000 boe per day of aggregate production (7,000 bopd from the Jurassic and 24,000 boe per day from the Triassic)"

https://polaris.brighterir.com/public/gulf_keystone_petroleum/news/rns/story/ry8y07w

On the website, it appears that there have been a significant amount of RNS's removed as there were interim RNS's at the time when they were drilling, now there is only the spud and discovery RNS's.
I also note that not much gets mentioned in any of todays presentations that there is dry gas in the lower Triassic formations of Shaikan, why is that Jon?

GKP have drilled several wells to Triassic levels so it should be a simple workover and perforation job to start production from these levels. It does however mean that there will be H2S produced as well which would require different production tubing to put up with both the H2S and CO2 that gets produced but that is common in todays oilfield.

Getting to 55k BOPD should NOT be this difficult with this field, Ferrier is dragging his feet and filling his pockets in the mean time.

When Jon Ferrier joined GKP, within a couple of weeks, he released an RNS which began with the following sentence:

"Gulf Keystone, the operator of the world class Shaikan field in the Kurdistan Region of Iraq, today confirms that it continues to produce in excess of 40,000 barrels of oil per day ("bopd") following the successful completion of de-bottlenecking operations at PF-1."

THAT WAS IN 2015!!!!!!

Now the production is circa 37,000 bopd

definitely the BoD
Since this current infestation arrived arrived and stuck their noses in the trough, the company value has done one thing and one thing only.
Yet they seem to think they deserve bonuses!!

"You have no influence when you believe you have no influence."

Have you seen the shareholdings? You do know what Ferrier did to shareholders in 2016?

Don't worry...it's Ferrier delivering value and maintaining strict financial discipline.

private investors have zero influence here
Ferrier saw to that when he sold out the shareholders for his own interests in 2016
It wont matter what you vote for or against, the decisions are already made before the paper is typed up

Ghawar produces circa 80% water nowadays, there are in excess of 3500 wells drilled on it including water injectors, gas production and oil production.
Ghawar production rate drops circa 8% per year and has a per barrel production cost between $20 and $40 reportedly.
Production ceiling in Ghawar has dropped from 5 MMBOPD to 3.8 MMBOPD in as they reported 2019 (bear in mind that that figure was from the Aramco prospectus so is likely to be rather "massaged" to say the least)

Essentially, they have overproduced Ghawar and caused it to cone out and produce water. They have to drill more and more infill wells to get at the oil. There is still plenty of oil there (circa 48 billion barrels) but you drill a well there and you get a splurge of oil then the water comes. The reservoir pressure has also been depleted hence they are pumping in sea water, the problem with that is that salt water will emulsify with the oil causing more issues. This is what contributes to the higher onshore production costs.
If they have done that to their biggest asset, imagine what they have done to the smaller fields.
IMO there is a substantial oil shock to come in the not too distant future

"Restricting weapons to state and military institutions"

Seems like an odd clause to have considering what goes on in Iraq

You appear to be making it up as you go along or just plain lying to suit your corner
Do some research

Toddle on