Gulf Keystone Petroleum Share Discussion Threads

[oil_investor] 14/12/2016 09:07

Look at these specific points:

"Ordinarily, an option may be exercised at any time more than three years but within 10 years after the date of grant by an option holder who, at the exercise date, is employed or engaged as a contractor by a group company."

This means that these options cannot be exercised until CHRISTMAS 2019 AT THE EARLIEST.

"options granted to a 'bad leaver' lapse and cease to be exercisable"

This means that anyone removed from the company between now and Christmas 2019 etc. LOSES THE OPTIONS. I would say that there is risk here.

And I think this one is perhaps particularly relevant:

"In the event of a change of control or a voluntary winding up of the Company (other than an internal reorganisation), outstanding options become exercisable provided that if the Company enters into a binding sale agreement prior to 13th July 2017 [note: I believe this has now been amended to 31 December 2017 - oil_investor] an option may only be exercised up to a maximum of 50 per cent of the Common Shares over which it was granted"

This means that if e.g. Sinopec or ExxonMobil agree to acquire GKP before the end of next year THE OPTIONS ARE HALVED.

Are these Awards excessive? That's a matter of opinion. If GKP is sold before the end of next year, the option holders would lose their jobs (and potentially have trouble getting another?) and anything near to the current share price would hardly represent a good Lottery win etc.

It's all about The Barrels in my opinion. How many Recoverable Barrels does GKP have in its 58% of the Shaikan SUPERGIANT. And it was John Stafford himself who called it a SUPERGIANT, in a Presentation which we hadn't seen before yesterday morning. And what a SUPERMAJOR might potentially pay for those Recoverable Barrels.

Just some pre-breakfast observations.

[1712notout] 14/12/2016 09:07

On balance then
As ever
Huge buy
And most importantly
Hold
All the best
🚀🚀🚀🚀8640;🚀Ԇ40;

[shaftdrive1] 14/12/2016 09:05

Ok,spread sorted,lets see the colour of your money Mr M.

[lardner23] 14/12/2016 08:55

O666: "I cant with the best will in the world blame TK for failure to pay bonds or get paid."

The one thing we can only speculate about is how TK would have handled the bond repayment as the 2017 deadline loomed and the quality of the assets was under review. Murray made some comment that TK had already indicated he was intending to go well before he actually left. That might have just been face-saving; alternatively, maybe TK saw the writing on the wall and was setting up a 'hospital pass' for the next incumbent?

If it's beyond them, joseki, why did they not walk away with heads and integrity held reasonably high? (Rhetorical)

[oil_investor] 14/12/2016 08:46

Well, if people won't read the details of how the SRP operates (which were NOT in the RNS of 16:42 yesterday) they will draw conclusions based upon incomplete evidence. I outlined the key things to look at on here yesterday, but posting fresh allegations and going back over old posts seems more important to some.

Here are the details:


PART 3

2016 GULF KEYSTONE PETROLEUM STAFF RETENTION PLAN

The main provisions of the proposed 2016 Gulf Keystone Petroleum Staff Retention Plan are summarised below.

Options

An option granted under the plan will take the form of a right to acquire Common Shares. The option exercise price will be zero.

Eligibility

Persons who are either employees of or provide services as contractors to a group company, who are not members of the board of directors of the Company and do not participate in the VCP are eligible to be granted an option.

Timing of grants

Options may be granted at any time other than in a closed period.
No options may be granted more than six years after the adoption date.
Consideration for grants
No consideration is payable for the grant of an option.
Share capital limits
Options may be satisfied by the issue of new Common Shares, the transfer of Common Shares out of treasury or by funding an employee benefit trust (‘‘EBT’’) or other intermediary to purchase Common Shares on the stock market.
The maximum number of Common Shares which may be issued pursuant to options granted under the Staff Retention Plan will not exceed the number that is equivalent to 1% of the number of Common Shares in issue at the adoption date.
No option may be granted under the Staff Retention Plan on any date if the maximum number of Common Shares to be issued when it is exercised, together with the maximum number of shares issuable and remaining issuable pursuant to options or other forms of share award granted within the preceding 10 years under the Staff Retention Plan and any other employees’ share scheme adopted by the Company, would exceed 10 per cent of the Company’s issued share capital on that date.
For the purpose of the share capital limits, the issue of shares includes the reissue of treasury shares but not the purchase of shares on the stock market by an EBT or other intermediary.

Individual limits

The number of Common Shares in respect of which an option is granted shall be determined by the Board.

Exercise of options

Ordinarily, an option may be exercised at any time more than three years but within 10 years after the date of grant by an option holder who, at the exercise date, is employed or engaged as a contractor by a group company.
Special rules apply to an option holder who ceases to be employed or engaged as a contractor by a group company. Option holders who leave as ‘‘good leavers’’; (i.e. those who leave the group owing to injury, disability, ill-health, redundancy, the participant’s company or business leaving the group or other reason which the Board considers justifies treatment as a ‘‘good leaver’’) may exercise their options whilst options granted to a ‘‘bad leaver’’ lapse and cease to be exercisable.
The exercise of an option is not subject to any performance conditions.
If an option holder dies, his personal representatives may exercise all his outstanding options at any time within the period of 12 months following the date of death

Change of control
In the event of a change of control or a voluntary winding up of the Company (other than an internal reorganisation), outstanding options become exercisable provided that if the Company enters into a binding sale agreement prior to 13th July 2017 an option may only be exercised up to a maximum of 50 per cent of the Common Shares over which it was granted.
If, as a result of an internal reorganisation, control of the Company passes to a new holding company whose shareholders are substantially the same as the Company’s shareholders immediately before the change of control, outstanding options granted under the Staff Retention Plan (‘‘the original options’’;) will be exchanged for options over shares in the new holding company but otherwise on the same terms, as far as practicable, as the original options.
Variation in capital
If there is a variation in the Company’s share capital, the option exercise price, if any, and the number of share subject to an option may be adjusted by the Board acting in a fair and reasonable way.
Expiry date
No options may be granted later than the sixth anniversary of the adoption date and no option may be exercised later than the tenth anniversary of its grant date.
Rights of option holders
Options are not transferable except to an option holder’s personal representatives in the event of his death.

Options do not confer any Shareholder rights until they have been exercised and shares have been issued or transferred to the option holders.
Common Shares allotted under the Staff Retention Plan will rank equally with shares of the same class then in issue, except for rights arising by reference to a record date falling before their allotment.

Overseas plans

The Board may at any time, without further Shareholder approval, establish in overseas territories additional plans, which must be similar to but which may be modified to take account of local tax, exchange control, securities law or other regulations. The share capital limits referred to above will apply to shares issued under any such plan.

Amendments to the Staff Retention Plan

The Board may amend the plan at any time, except that provisions relating to:
(a) eligible persons;
(b) the share capital limits;
(c) the basis for determining an option holder’s entitlement to, and the terms of, shares; and
(d) the adjustments which may be made if there is a variation of capital.

The terms of the Staff Retention Plan cannot be amended to the advantage of participants without the prior approval of Shareholders in general meeting, except for minor amendments to benefit the administration of the Staff Retention Plan and amendments to take account of a change in legislation or to obtain or maintain favourable tax, exchange control, securities law or regulatory treatment for option holders or a group company.

No amendment may be made to the disadvantage of an option holder in relation to an outstanding option without his consent

[ny boy] 14/12/2016 08:45

Onwards & upwards, enough from these old shafted shareholders, the new savvy kids on the block are here now.😎

[joseki] 14/12/2016 08:44

7 3
Joesiki. I would stop embarrassing yourself. TK took money when the company had 4 blocks, he did his share awards when GKP had interests in 4 blocks and 80% interest and operator in SA with no BIR.

Only an Andrex role like JF and ZH could give Hawrmi everything back he ever wanted,choirboys and catholic priests come to mind with these 3
--------

CJ, it's not quantity of blocks but commerciality of those blocks that matter. Execution. No value creation putting a signature down on multiple acreage. Todd certainly did good on Shaikan, but even then the 9p placing? He got rewarded for Shaikan, more than enough times.

All the other blocks and everything else though he did was whilst paying himself knowing SA was bad, knowing BB was bad, deliberately overstating Shaikan potential, cherry-picking data for early appraisals, and then kept lying about it till people got a shock by ERC Equipoise.

Ferrier joined thinking Shaikan was a real whale and the other blocks were still valuable. You could put anyone in his place, and facts won't change. You would hand back blocks that couldn't produce commercially, suffer the oil price collapse, face export disruption on geopolitical grounds, and stare into the bleak abyss of an overgeared balance sheet. If hypothetically you were in charge instead of JF SZ, what of these things would be different.

Finally, remember you don't have the money to go down the Dana route. So what do you do with the guy who writes the cheque each month, bearing in mind your shareholders suffer the most if he stops writing them or the licences get revoked?

I am by no means endorsing the BoD, they are getting too much. But they look like angels compared to Kozel. Some of this is all beyond them imo.

[ccr1958] 14/12/2016 08:42

yes another one out of the sty !!!

[nestoframpers] 14/12/2016 08:35

mr genel energy
Member since: 09 Dec 2016

FILTERED

[shaftdrive1] 14/12/2016 08:29

I do love the smell of porridge in t' morning,especially after its had a rigorous stir!

[1712notout] 14/12/2016 08:27

What day is it tomorrow?
Yes it's dec 15

Buy and hold
All the best
🐖🐖🐖🐖
🐩🐩🐩🐩
☃☃☃;☃

[shaftdrive1] 14/12/2016 08:22

Lone ranger? Look for a B2F jacket.gives them away,altho I have sold quite a few of late!

[ccr1958] 14/12/2016 08:19

Who`s the new freak ,lol, need I ask ?

[shaftdrive1] 14/12/2016 08:19

Bet a lot of lths are well chuffed gkp may be gone for 350p/3.5p! Hardly a fekkin result for years of being lied to whilst watching the perpetrators trough whilst the house is on fire.
2nd helping today as I feel circ 175 is entering the pigfest 🐷

[1712notout] 14/12/2016 08:13

So another day of
Buy and hold
Of course
Hold
As the inevitable deal awaits
All the best
🐩🐩🐩🐩8640;🚀Ԇ40;🚀💲;💲💲💲🈲
27538;🈲538;🈲㈳4;😂😂😂😂👀👀8064;👀Ӿ70;😊😊;☃☃ύ1;☃☃a31;

[mr genel energy] 14/12/2016 08:03

looking good.
not tanking.

[ohdearohdearohdear] 14/12/2016 07:59

No RNS denying the rumour......

[shaftdrive1] 14/12/2016 07:50

I thought gkp had left the Aim market? pity they never left the trough.still,had a trough yesterday. If you can't beat 'em.....

[hearts1] 14/12/2016 07:48

Did Sinopec use their own slide rule or did they borrow Exxon's?

[1302sb] 14/12/2016 07:47

It's starting to look like a pump and dump.

Strange timing for the leak, and swiftly followed by confirmation of the bod troughing. It seems they consider that more important than keeping shareholders informed or commenting on the Sinopec rumour on Bloomberg.

[hearts1] 14/12/2016 07:46

How much have you lost on Genel?