Gulf Keystone Petroleum Share Discussion Threads

[oil_investor] 10/6/2018 19:34

enormous chinese takeaway: indeed. Perhaps Keith Lough’s words in the 2017 Annual Report might help restore some common sense and sanity.

Throughout 2017 and into 2018, Gulf Keystone has, with continuing support from the Kurdistan Regional Government (“KRG”) and the Ministry of Natural Resources of the KRG (“MNR”), made considerable progress, reflecting the strong alignment of economic interests between operators and Kurdistan. Everyone stands to benefit from the responsible development of the region’s natural resources, including Shaikan, one of its most‐prized oil fields.

During much of 2017, Kurdistan was buffeted by the political complexities of the region, including the war against Daesh, which for Kurdistan has come at a considerable human and economic cost. In the broader region there were the well‐publicised issues impacting both Syria and Turkey. The Kurdish independence referendum that was held in September 2017 contributed to yet more uncertainty for the area where we operate.

The significance of these macro factors, which are clearly out of our control, were profound for our business and our efforts to both create a climate for investment and build deeper liquidity in our shares. This year has seen considerable political and economic uncertainty, leading to a significant drain
on the region’s financial and other resources.

From an operational perspective, Shaikan continued to perform well throughout 2017. From a commercial perspective, as we have highlighted in recent communications, Gulf Keystone has been seeking clarity around the contractual framework in which it operates. Whilst work remains to be done, the very important Shaikan crude oil export sales agreement (“Crude Oil Sales Agreement”), which was worked on during 2017 and announced in January 2018, represented a major milestone for the Company. The successful implementation of the Crude Oil Sales Agreement is an important commercial event for the Company and moves the business closer to finalising its commercial negotiations and restarting investment into Shaikan. We remain optimistic about shortly arriving at a satisfactory outcome with our partners: the MNR and MOL.

Concurrent to the ongoing negotiations with the MNR, the team has been readying the Company for the future, with substantial technical and commercial work completed. Having closed the year with a cash balance of $160 million, and the plans put in place to deliver the target of increasing production to 55,000 bopd, the Company has the means to move swiftly towards delivering more value from the field for all stakeholders.

We strive to keep our shareholders abreast of progress and take our responsibilities in this regard extremely seriously. Whilst the Company has been busy working on both the updated Field Development Plan (“FDP”) and advancing discussions with its partners, it is only appropriate to provide updates to the market once items are concluded and can be described clearly. We appreciate the absence of news flow may feel frustrating for investors.

An updated and comprehensive suite of Key Performance Indicators (“KPIs”) were introduced for the Company in 2017 as part of our continued efforts to achieve high standards of corporate governance, and to support both our commitment to transparency and, of course, alignment between our staff and our shareholders. We are also committed to ensuring a greater focus on diversity across all our teams, improving the development of all employees and promotion of women and local employees into positions of seniority.

The KPIs for 2017 are described in the Remuneration Committee Report, which is in the Annual Report.

I would like to thank our shareholders for their ongoing support through what the Board recognises has not been an easy period.

We would also like to thank our hosts, the government and people of Kurdistan who have helped enable continuous operations throughout this challenging year. It has been an unsettling time for our staff in London, and particularly for those in Erbil and in the field. There has been uncertainty for many, both at work and at home, and, on behalf of the Board, I thank all our staff for their deep professionalism, stoicism and good grace throughout. It has been said before, but my belief is that Gulf Keystone has a strong future ahead of it.

As I finish my tenure as Chairman, which has been a privilege, I would like to wish good fortune to all those connected with Gulf Keystone. I am delighted to be handing over the role of Chairman to Jaap Huijskes. Jaap has already demonstrated his enormous value to the Board and the Company as a whole, as a Non‐Executive Director, and I know his experience and skills will serve him well in his new role.

Keith Lough
Chairman 10 April 2018

[roverite12] 10/6/2018 16:33

phoenix10010 Jun '18 - 16:25 - 566326 of 566328

I know now you are barking up the wrong tree literally


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No thicko

NOT literally

Not even figuratively ......lol

[roverite12] 10/6/2018 16:24

Bigdog510 Jun '18 - 14:00 - 566286 of 566322


All the company has is the 360m of heavy oil, that's it. All the other numbers are yet to be proved up. They are therefore worth zero.


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Dog5hite

A very simple question

Are you the same person who wrote the following posts ?








"Shaikan is massive, possibly 18b-26b barrels OIP.

Value we're not sure but think north of $5 a barrel. Recovery around 30%.

Company maker"

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"Shaikan, 18b barrels = 2916b reserves therefore a value of £9.4b"