Member Info for Mulder

$30/barrel is better than most expected

GKP production cost is very low, just $3/barrel

An update from Genel Energy PLC (LSE:GENL, OTC:GEGYY)'s partner, DNO, indicates growing confidence in domestic Kurdistan sales, even though the revenue contributions remain "modest", said investment bank Stifel in a note to clients.

Operations at the Tawke field have been partially resumed with output averaging about 40,000 barrels of oil per day (bopd).

Half of this production is delivered to the Kurdistan Regional Government (KRG) as its entitlement, with the remainder being sold to local trading companies. Notably, the Peshkabir field remains closed.

The selling prices for the oil have been discounted, averaging just over half of what they were before the closure, assumed to be around $30 per barrel.

Payments are now being made upfront and directly to the operator. Stifel estimates that this arrangement results in monthly cash flows net to Genel of approximately $5 million, which should cover the second half of 2023's capital expenditures and operational expenses at Tawke.

For Genel to match Stifel's net asset value (NAV) projections or its previous cash profile, the export pipeline needs to reopen or domestic sales must expand significantly.

The bank's NAV for Genel stands at 143p per share - that's a significant premium to the current 78p price. Still, Stifel is currently neutral on the stock with a 'hold' recommendation.

Would make a great acquisition for someone...

Someone likes to show off...what's your background?

& if the pipeline resumes??

It is good for Genel to have some positive news from Kurdistan where DNO has, after reopening to check all was OK, found that it was and that local traders were flocking around to buy some 20/- b/d. As can be seen above prices are at a discount but are paid in cash and in advance which has a nice feel about it.

It’s like the old days at Tawke as the tankers collect the off-take from the field and whilst it’s not Christmas it is better than the proverbial sharp stick and such revenue is very welcome and probably covers G&A costs to a large degree.

At 80p this is no time to jettison Genel and although there is no sign yet of peace on the pipeline front I still believe it would be ridiculous for it to remain shut and therefore Genel will have significant further upside for the patient investor.

It is good for Genel to have some positive news from Kurdistan where DNO has, after reopening to check all was OK, found that it was and that local traders were flocking around to buy some 20/- b/d. As can be seen above prices are at a discount but are paid in cash and in advance which has a nice feel about it.

It’s like the old days at Tawke as the tankers collect the off-take from the field and whilst it’s not Christmas it is better than the proverbial sharp stick and such revenue is very welcome and probably covers G&A costs to a large degree.

At 80p this is no time to jettison Genel and although there is no sign yet of peace on the pipeline front I still believe it would be ridiculous for it to remain shut and therefore Genel will have significant further upside for the patient investor.

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Some of us have been saying for months they should have been resuming production and making sales.

Was the only way to get the idiots to come together and reach a deal.

Live

You obviously missed the takeover news from Mr Kleinman literally just a few weeks ago!

Do the maths.

Gold price $1,900

AISC $1,300 possibly less

Production 180,000 to 190,000

EPS for this financial year c. 4.5p

Search KRG Oil

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Five oil companies operating in Kurdistan are requesting the protection of their rights within the Iraqi hydrocarbon law. Implicitly, they are threatening the KRG with pursuing new arbitrations in London if their financial concerns are not addressed.

Today's update confirms just how rife insider trading is in the market. Hedge funds knew in advance and why M&S shares even on bloodbath days recently have barely moved.

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Tracker funds buying.

Local sales now at knock back prices should hopefully force a deal and resumption.

Local sales should keep the cash position around the $100M mark while the muppets play their games.

If a Dana style payment is received then even better!

For GKP, like other players in the area, the stark truth is that apart from a small amount of local sales there is nothing the company can do but sit on their hands waiting for the pipeline to reopen.

Noises from both Baghdad and Erbil are pretty positive in terms of relationships being maintained and so it is clear that when the pipeline reopens they will get revenues and back payments.

'Pretty positive' - source?