Member Info for Straycat

That's b*llocks..

In the real world you organise your sales to match your payments.

Fundamental business principle.

W

You're really struggling with this P&L/Balance Sheet argument that I've made, aren't you PUTUP?

It defeats your technical and motivated diatribe.

Which is, in the end, pointless.

Th numbers are the numbers. And no amount of spin can get away from that.

Which is why you're struggling...

TM,

Try looking at it this way.

The reported Balance Sheet shows GKP being owed $151m.

And a $14m impairment (with consequent P&L impact) set against that unrecovered and delinquent debt in the first half accounts and before.

Meanwhile the Board (to their credit) are successfully mitigating the damage caused by the pipeline shut down.

In fact they've carved out a new way forward despite the pipeline closure, albeit at discounted prices.

In the end, the proof is in the P&L /Balance Sheet pudding.

And the Board's job is to make it as palatable as possible in the circumstances.

That requires cash conservation at all points right now.

And without any receipts for a year, they're doing a decent job on those criteria.

Let's not pay back KRG money that they don't deserve for breaking their contractual obligations. Again.

'Get a grip'.

Please explain to me how detailed knowledge of the half year results and what they mean, is such a problem for you.

You continually rely on the PSC and its construction to validate your arguments.

Unfortunately for you, neither the audited or unaudited accounts reflect your opinions...

That's the problem.

Don't get me wrong PUTUP, it's not that I don't value your technical input. I do.

But it doesn't substitute for resolute management in the theatre of conflict which is where JH finds himself right now.

Thanks FH1.

You just saved Sh*tforbrains from a properly excoriating response...

What a strange and revealing question.

Because the pipeline closing or opening and/ when is irrelevant if GKP can't fund the the production.

So cash is King.

And so we need to preserve it.

Newdealz. ,

So you don't think I'm dealing in facts do you?

You mean like the unaudited half year accounts?

Explain. Please do.

I'm all ears...

That is a stupid post.

GKP are owed $151m net as per their half year statement.

Why are you repeating PUTUP'S narrative dictating more PSC detail which has nothing to do with the RNS reported in GKP's own financial assessment?

You know, the one that every shareholder has read. and responded to by their investment decisions.

Accounting fact as opposed to PSC mechanics. and bb manipulation.

As I say, stupid post.

Tell PUTUP to give you more prep and a better brief...

Have I missed something ref offset FH1?

Quite possible!!

Balls

An issue was raised last night that I didn’t deal with. So let’s deal with it now.

I stated that GKP are owed $151m. And i proposed offsetting it against delinquent debt.

PUTUP’s reply was:-

‘Why would they offset something they’re entitled to against something they’re owed?’

And here’s the problem with that response as per the OpUp of 9/8/23 by JH and the Board:-

‘Outstanding receivables of $151 million net are owed to the Company for the months of October 2022 to March 2023 on the basis of the KBT pricing mechanism.’

PUTUP continually conflates the PSC and its operational mechanics with how the PSC is interpreted in the published financial statements. Statements which crucially influence investor opinion.

The simple truth is we are owed $151m NET by the KRG, whatever the reasons.

And GKP have received NO money in the last twelve months from them.

In fact GKP suffered a $14m impairment in their half year results as a consequence of their financial need to recognise that delinquent debt. And that took GKP into a small loss. If they don’t do something about that, the impairment requirement alone will grow until the delinquent debt of $151m is covered in accounting terms. As well as the reduction in GKP’s future bank balance because they don’t receive the money.

So profit compression to offset delinquent debt and consequent and continual impairments as well as reduced FCF. Happy days…future profits are compromised even if we continue on the new trajectory. Good oh…like it wasn’t hard enough as it is.

And that needs dealing with. The simple answer is offset.

Who cares about PSC contractual obligations right now? Certainly not the KRG and the other acronyms. And anyone who continues to play by the rules that the KRG are not recognising is dreaming of a better world.

In Kurdistan? Really?

In general management terms JH MUST stop the cash bleed.

Offset is the way forward even if it is confrontational, (ref. C0ckeye). GKP needs to conserve its cash in these troubled times. And it mustn’t rely on its contractual allies to join in. Because they’re not.

PUTUP is a financial analyst. And a good one. But he relies on that detailed analysis and maybe doesn’t really understand the translation of his analysis into publicly reported financial statements.

Or maybe he does (I think so), but that takes us down a very different posting and motive route.

Because the fact is that the PSC must be translated into accounting language that other investors can understand. And take investment decisions on.

And that has nothing to do with the mechanisms of the PSC.

It’s all about accounting precedents and a common form of reporting financial performance in an understandable format. For ‘informed’ investment purposes.

And I reckon PUTUP knows that.

So GKP are owed $151m. And JH has to come up with a plan to get it back.

All I’m arguing is that offset is a simple remedy.

As long as JH has the

Just winding you up P...:)

That.

The equilibrium referred to is the delinquent debt.

As to repayment instalments, that may be the way it pans out, but nevertheless GKP should preserve its cash and not relinquish it under agreements that are currently completely collapsed in extremis.

Any discussion on Board cashflow behaviour must be perdicated on the facts.

And they are:-

1) GKP haven't been paid for twelve months and previous to that their have ben several serious breaches of payment trust;

2) GKP are owed $151m with no indication as to when that delinquent debt will be repaid, apart from vague statements of intent by the KRG (who are no longer the principal arbiters in this dispute);

3) At no point have GKP been offered any way forward under the PSC, and that contract is now under threat due to forces beyond GKP's control;

4) there is no specific signal for repayments beginning anytime soon...not by any of the acronyms in qustion;

So GKP have found another way. One that preserves their precious cashflow, enables them to manage their supply lines, manage their receipts and therefore manage their future for now.

No help from any of their contractual allies.

I say again, the Board have a duty to their shareholders and it's a primary duty.

' We are receiving advance payments into our UK account for it's net entitlement....'

The key words are 'advance' and 'for' and 'net'., i.e. we've collected the money up front (in advance); 'for' (to facilitate); 'net' (so GKP finally have control over whether/when GKPe get paid.

They should keep the advance payments and offset against year old debt (!) until there is some equilibrium restored. .

What they mustn't do is show more weakness...and I read that RNS statement as their commitment to sustainable cashflow and another example of the soft power that will 'help' the acronyms understand,

If I'm right in my reading/interpretation, then GKP will keep the advance payments and offset them against MASSIVELY delinquent debt.

Otherwise, what's the point? If you can't get paid, and that's been a frequent difficulty since inception and production, then what's the point?

The payment issue has now come to a head. And not before time.

I just hope AKIPUR remain solid, but because of their relative Balance Sheet issues, I don't know that will.

Hey P,

I get your point, but I'm not sure I read it that way.

'The Company is receiving advance payments into its UK Bank account for its net entitlement

of 36% of gross revenue.'

Given the continuing need for 'Board Speak' whenever a public announcement is made, I'm construing that as; we''ll take the money for sales upfront and release your proceeds later when we're all in better shape.

JH's primary responsibility is to protect his shareholder's best interests. Why would you pay someone who was in beach of contract and owed you $151m?

I would withhold future payments against resolution of the payment issue. And if I didn't, I would expect a furious backlash from aggravated shareholders.

Whatever your opinion of the Board, they deserve credit for the way they've handled this most traumatic development over the past six months.

And JH deserves particular praise for his direction and leadership.

We're definitely not out of the woods yet, but his demonstration of soft power to all the acronyms; KRG; MNR, ICG, SOMO etc, is a sign that he is prepared to cover all bases in his efforts to keep the oil flowing.

And particularly if he is offsetting his receipts against outstanding debt...

More importantly imo, if AKIPUR are true to their word, then we could finally have a resolution to the uncertainty of regular payments in the Region.

But that might take a little while.

In the interim, all credit to the bloke and his team.

'...but over time i came to conclusion that straycat is female.' per ccc.

and then being decried as a summertime/wintertime transgen **** by putup..

i love that image!

i can also see myself doing tricks in st bart's then aspen for the right clientele , because i'm very attractive(for now)!!!

you're both right. i just didn't know i was transgen!!

i need to seriously question my sexuality...however, personal e-mail will be provided on request.

if either of you are interested!!!

what a load of b*llocks.

funny though.

Humour from PUTUP! Who knew?

Good on you PUTUP.

Problem is, comments like:-

'Reading this BB provides endless entertainment.';

is an insult to all of those PIs who have put their investment and judgment into a Company that may/may not fulfill its potential.

And it's incumbent on investors like us that we try and introduce a detailed financial perspective on what's possible. And what's not, albeit from a distant perspective without any visible reference to our credentials for validation purposes

As .for my wealth (if I have any!), well I've now made my mind up and GKP seems to me to be a good bet.

It's not a deal breaker for me if I'm wrong, but I reckon it's an investment proposition I want to be a part of..

As for sex...I get my quota. Even though I'm butt ugly !!

But thanks for your interest. xx

You're obviously in a lot of pain here PUTUP.

You need to settle into the new circumstances and simply chin it. Based on GKP's new trading environment.

Or F*ck off and take your lower profit trajectory.

However, what you can also do is to give us your valuable insight into the difficult and delicate financial judgments that need to be made.

Join in again, even though I think you're going to struggle with that right now.