Gulf Keystone Petroleum Share Discussion Threads

[oil_investor] 22/2/2017 17:18

22 Feb 2017 14:34 GMT DJ

Gulf Keystone Views Future With Confidence, Shareholders Unconvinced

By Philip Waller

LONDON--Gulf Keystone Petroleum Ltd (GKP.LN) is regarding the future with confidence after its debt restructuring, though shareholders who lost most of their investment in the Middle East oil producer aren't convinced.

Gulf Keystone has pledged to focus on developing its giant oil field in Iraqi Kurdistan after last year's restructuring, in which it converted more than $500 million of debt into equity, leaving debt of $100 million.

The move handed about 85% of the company to creditors, leaving shareholders with about 5%, though the company also held a $25 million open offer for the rest of the equity.

The group's main asset, Shaikan, is an acknowledged world-class oil & gas field said to be as big as greater London and three times the height of the U.K. capital's tallest building, the Shard.

Chief executive Jón Ferrier cites an independent report that put the field's recoverable reserves during the period of Gulf's existing license at 622 million barrels.

Still, some shareholders who lost out in the restructuring fear the company isn't making the most of Shaikan's potential and its attractiveness to potential buyers.

They point to an independent assessment in 2012 that put total resources in the field at 13.7 billion barrels, though only about a third of that is thought to be recoverable.

"I don't think Ferrier is much of a salesman," one shareholder said on condition of anonymity.

Mr. Ferrier says he's trying to manage investor expectations about one of the most complex oil-fields in the world.

"I'd rather not hype these things - there's too much hype in this market," he told Dow Jones Newswires and the Wall Street Journal in an interview. "We're trying to deliver what we promise."

Takeover rumors about Gulf Keystone have swirled since at least 2011, when reports suggested the company attracted interest from U.S. major Exxon Mobil Corp. (XOM) and China.

The latest bid talk was in December 2016, when its shares rose following a media report that Chinese oil major China Petroleum & Chemical Corp., or Sinopec Ltd. (SNP), had made a takeover approach for the group.

In July, it rejected a takeover proposal from Norwegian oil group DNO ASA (DNO.OS), saying it needed to complete the debt restructuring.

U.S. rival Chevron Corp. (CVX) considered an approach in 2014, though it never materialized, according to industry sources with knowledge of the situation. Chevron didn't respond to a request for comment.

Meanwhile, Exxon sounded out Gulf Keystone over a possible deal in 2011 that would have valued it at about 7 billion pounds ($8.7 billion), according to a report at the time.

Mr. Ferrier has nothing to say about the claims, though he says he would put any "sensible offer" to the board.

The company hopes to boost production to 55,000 barrels of oil a day in a couple of years from 40,000 now by investing in equipment and a new pipeline from Shaikan, helping it to avoid using road tankers.

"I'm not hawking the company around," Mr. Ferrier said. "My team's priority is to gear up for the next stage of investment."

The company has introduced a management incentive plan under which its members would get 2% of the aggregate acquisition price of the company for the units they hold in the plan if it is acquired before July 13 this year, a date later changed to Dec. 31, 2017.

Some shareholders have voiced concerns that the plan could push management into selling Gulf Keystone cheaply, but Ferrier says it encourages him and his colleagues to focus on the long term.

"We're not motivated to sell the company quickly," he said.

-Write to Philip Waller at [e-mail]

(END) Dow Jones Newswires

[oilman63] 22/2/2017 16:55

👮🏻

[2jester] 22/2/2017 16:27

Fair enough.

That is clean by any standard. (GKP use)

[gkphero] 22/2/2017 16:25

I've only used it since 2012.

It's name is Exxon Mull.

[gkphero] 22/2/2017 16:24

That sock is clean ffs.

[bigdog5] 22/2/2017 16:22

Village idiot, try thinking that if there are any Sothic peeps here they would be ramping the SP, like you do. Not the other way round. See if you can fathom why.

I note another great post from the Fake Reverend Gullible. He appears real bitter and is lashing out at everyone that disagrees with his predictions and stories from the past of who said what. He does seem to have a selective memory. I'm wondering if he's "wound up" about a past partnership.

[2jester] 22/2/2017 16:22

Ben?

I thought i was oilman?

And earlier on i was Sothic?

Deary me, its difficult to keep up with the lies you tell, GKPhero.

[gkphero] 22/2/2017 16:19

Don't post anymore pictures of yourself Ben FFS.

You were unlucky with the gene pool, so just leave it at that.

[2jester] 22/2/2017 16:03

Oops, sorry if i touched a raw nerve with the carpet. I hadnt realised your savings were put into GKP instead.

Keep the dream alive, GKPhero, you'll be able to afford that second hand carpet someday!

:o)

[gkphero] 22/2/2017 16:01

2jester
Member since: 26 Nov 2016

[gkphero] 22/2/2017 16:00

No offence.

[gkphero] 22/2/2017 15:58

Looks like 2jester is that ugly mutant Ben.

[lardner23] 22/2/2017 15:57

O63, well he was right when he said the convertible bonds would convert to equity :))))

[2jester] 22/2/2017 15:52

GKPhero, i'm glad as i wasnt trying to fool anyone. I'll leave that up to Team Boiler-room.

[gkphero] 22/2/2017 15:51

The desperation of the city employees on here is sickening.


I will never sell any GKP shares until I see a decent price for them.

I will buy more GKP shares until that day arrives.

[gkphero] 22/2/2017 15:42

You're not fooling anyone 2jester.

It's good news that you and the other city halfwits are posting on here all day, every day.