Member Info for PUTUP

"Further recovery of the oil price, achieving 40k/55k bopd, paying a dividend, restoring shareholder confidence and achieving political resolution is what’s needed here. Not shows of temper or threats of litigation against the KRG."

Yeah, fat chance of getting the KRG to attend court. No point ramping production when you're not going to make a great margin on it. Better to leave it in the ground optimizing production levels to keep costs low. That's not the same as shutting everything down and then having to incur startup costs. Instead, weather the storm. That's what we've been through and quite possibly have a bit more foul weather ahead. Not fussed about a dividend. Far better to get started with the buyback, returning capital to disgruntled shareholders while long-term believers effectively invest more by not selling. Management will be, and should be, working on the trust of their institutional sponsorship as that's much more important. Getting paid for the existing receivable and oil price buoyancy are the principal catalysts to stock price rerating. In the interim I'm happy to add on weakness.

Straycat - no one that matters is listening to your whining. It's extraordinary to have such a one-sided view of management and the assets and still want to own the shares. Judging from your bleating you should be SHORT!

Roughly 2/3rds of the company is owned by 10 shareholders. The company is about to start mopping up 30% of the balance. I'd then vote for another 10% of shares in issue to be mopped up. Key shareholders are adding to their positions. Time for the "London cabbies" to go home.

Ridiculous. No way a short of 1.3% controls the motivations of two thirds of this company.

The bleating continues...

Board not trusted by anyone? They were overwhelmingly voted back in. The board and key management have the backing of key shareholders.

Lansdowne adds a board member? No surprises that Lansdowne and other large instos want a rep on the board. Standard practice.

They are going to buy more stock into TREASURY? No sh*t Sherlock. That's what happens when a company buys back its shares.

Yes, there now needs to be a 'consultation with shareholders' re executive pay but the motions were passed. Don't expect a phone call.

Straycat and other bleaters, why don't you simply sell to the company's bid (or mine) and go away?

"Dividend is a bird in the hand,"

where's the bird now? I'd rather pay CGT (if any) than income tax. Antiquated logic particularly in a case like this. And certainly not "money stolen."

"That 50 million buyback will be shareholder money stolen again.
They should have given that in dividend, disgraceful company"

Dividends are taxable. Stock buybacks return capital to shareholders in a tax free form. Why on earth would you want to pay tax?

"Treasury shares cancelled? Does than not mean existing shares are now slightly more valuable?"

No. It makes no difference at all. You would always use the share count net of treasury stock in valuing the company. On a fully diluted basis you would include any in-the-money options and the t-stock backing them.

"The issue is that the company has a $10M monthly run rate without the debt repayments so is still running at a loss and these guys have no spine or inclination to do anything about it. They ahve coasted along since being instilled in the position."

Provide your detailed workings as to how you arrive at this claim. Include your estimates for operating cashflow, capex and, of course, financial costs.

"80% votes for needed to carry through."

The resolutions were passed. But, yes, there now needs to be a 'consultation' with shareholders. I'm sure you will get a call.

No one can buy if there is non-public market sensitive information known to them

And the impact to the value of the company: precisely ZERO. An admin item.

" it looks very much as though Lansdowne Partners have demanded a strong presence on the GKP board and the company has had to comply with that demand"

Expect that presence to have been pushed by Astaris as well

As of Dec 31 2019 the company had 10,775k of options that could potentially dilute the then number of shares in issue (210,370,502). Obviously that number excludes the 300k out of the money options granted under the old ESOP. Of this 10,775k just 627k were then exercisable.

Since year end, a further 4,704,215 nil cost options have been granted under the LTIP, 113,407 under the DBP and very clever Ms Kernoha exercised 90k shares and sold them at 202.61p.

So under the various historical and current incentive plans there are now 15,539k shares potentially issuable. That compares with a current treasury stock position of 19,059k. So, currently, there isn't a massively excessive treasury stock position. Sure 3500k could be cancelled and hopefully the company will be adding further to the treasury stock position in swift order. But there's no need for all the bleating here about the treasury stock position.

You can validly have a view over the LTIP but are unlikely to have a position of significant size to sway the vote in that regard. Worrying about the treasury stock is misguided. Better that more of the company's excess liquidity be spent mopping up the unappreciative.

"obvious reluctance to cancel the buy backs straight away (as other companies do) then I do favour your thinking at the present time in that its to feather the nest of the BOD via the LTIP awards. (perhaps not all of them at once but there's certainly enough to go around for quite a few years yet)"

The LTIP is limited by its terms including the '10% over 10 years.' Whether treasury stock is used to satisfy LTIP obligations (as other companies do) or further shares are purchased when needed (as other companies do) is by the by. To have a fear of uncancelled treasury shares is to believe that the top shareholders would approve of a corporate action involving the sale of such shares that you would not approve of. That's (a) rather unlikely and (b) if it does occur you do not have a significant enough holding to influence the outcome by outvoting the other top shareholders.

"I had a look at the AGM resolutions earlier and the one regarding the VCP seemed to be requesting the right to move the strike price for options up or down. and knowing how this board works that will only be much way. If I understood it correctly it looked very ominous. Anybody else seen this or would like to clarify it?"

Which specific language bothers you?

"The resolution allows them to buyback 10%, ie 22.9 mio shares. They have bought back around 19 mio. They can only buy around 3 mio shares and when it is done, they have to cancel them, or part.
If they don’t cancel them, they aren’t allowed to buy more."

Did you read the resolution? The resolution authorizes the repurchase of a FURTHER 10% of share capital excluding the treasury shares i.e. 22.9m shares. They don't HAVE to cancel anything. They'd do well to deploy cash in the buyback as soon as possible.

"GKP has truly prolific assets which clearly speak for themselves and hence, market/SP will eventually adjust/significantly rise to reflect fair value here, and likely a lot sooner than most may expect."

Just need to soak up all the muppets worried about (utterly meaningless) treasury stock and who don't understand it costs money to turn the spigot on/off. Of course, if you think oil will return to $30 and get marooned there then this stock isn't for you. Yesterday was another good day. Soaked some more up at an average of 88.42p.

Steady as she goes. It's a lot more than your pithy 20k.

Not unless you plan to stay out for the next 5 years. I'll keep adding on weakness. Given I haven't yet bought my desired position, weakness will be welcomed.

Indeed very small but I will never knock a guy for turning a profit on his savings. So well done you. Hopefully you can grow that even further. But remember that management and the board won't feel too accountable to your small position or view. It's an anomaly that this stock is even public. Given it is you can tack along for whatever ride you want but don't moan and groan along the way. Far better to take the view that this is essentially a private equity investment. Build a stake at a value point you like and to a limit you feel comfortable with and then sit back for the long term. If you want to influence the board or management you'll have to become one of the top 10 shareholders (at least).