Gulf Keystone Petroleum Share Discussion Threads

[gkphero] 29/6/2018 08:49

Phillippa is joining us this morning.

She holds GKP for at least £40 per share and likes Bollinger R.D.

[gkphero] 29/6/2018 08:40

SP rocketing again.

Time for a ham and rocket sandwich in the city with Hugo.

[s0rayad] 29/6/2018 08:23

Gulf Keystone Petrol
Report on Payments to Governments for 2017
RNS Number : 9571S
Gulf Keystone Petroleum Ltd.
29 June 2018



.

29 June 2018



Gulf Keystone Petroleum Ltd. (LSE: GKP)

("GKP" or "the Company")



Report on Payments to Governments for 2017



Introduction



This report sets out details of the payments made to governments by Gulf Keystone Petroleum Ltd and its subsidiary undertakings ("Gulf Keystone") for the year ended 31 December 2017 as required under Disclosure and Transparency Rule 4.3A issued by the UK's Financial Conduct Authority ("DTR 4.3A") and in accordance with The Reports on Payments to Governments Regulations 2014 (as amended in 2015) ("the UK Regulations") and our interpretation of the Industry Guidance on the UK Regulations issued by the International Association of Oil & Gas Producers. DTR 4.3A requires companies listed on a stock exchange in the UK and operating in the extractive industry to publicly disclose payments to governments in the countries where they undertake exploration, prospection, discovery, development and extraction of oil and natural gas deposits or other materials.



This report is available to download on the Company's website:



Basis for preparation



Total payments below £86,000 made to a government are excluded from this report, as permitted under the UK Regulations.



All of the payments made in relation to the Shaikan Production Sharing Contract ("Shaikan PSC") in the Kurdistan Region of Iraq have been made to the Ministry of Natural Resources ("MNR") of the Kurdistan Regional Government ("KRG").



Production entitlements



Production entitlements are the host government's share of production during the reporting period from the Shaikan Field operated by Gulf Keystone. The figures reported have been produced on an entitlement basis, rather than on a liftings basis. Production entitlements are paid in-kind and the monetary value disclosed is derived from management's calculation of estimated revenue.



Royalties



Royalties represent royalties paid in-kind to governments during the year for the extraction of oil. The terms of the royalties are described within the Shaikan PSC. Royalties have been calculated on the same basis as production entitlements.



Taxes



Taxes include taxes levied on the income, production or profits of companies, excluding taxes levied on

consumption such as value added taxes, personal income taxes or sales taxes.



Bonuses



Bonuses include signature, discovery and production bonuses.



Licence fees



These include licence fees, rental fees, entry fees, capacity building payments, security fees and other considerations for licences or concessions.



Infrastructure improvement payments



These include payments for infrastructure improvements, whether contractual or otherwise, such as roads, other than in circumstances where the road is expected to be primarily dedicated to operational activities throughout its useful life.



Summary of payments



KRG

Production entitlements in-kind (1) (bbls (3) )

4,959,941

Production entitlements in-kind (1) (2) ($)

168,211,434





Royalties in-kind (1) (bbls (3) )

1,286,179

Royalties in-kind (1) (2) ($)

43,459,536



Taxes in-kind (4) ($)

1,254,823



Bonuses ($)

-



Licence fees in-kind (5) ($)

17,594,546





Infrastructure improvement payments ($)

-





Total (bbls (3) )

6,246,120

Total ($)

230,520,340





Notes

(1) All of the crude oil produced by Gulf Keystone was sold by the KRG. All proceeds of sale were received by or on behalf of the KRG, out of which the KRG then made payment for cost oil and profit oil in accordance with the Shaikan PSC to Gulf Keystone, in exchange for the crude oil delivered to the KRG. Under these arrangements, payments were made by or on behalf of the KRG to Gulf Keystone, rather than by Gulf Keystone to the KRG. However, for the purposes of the reporting requirements under the UK Regulations, we are required to characterise the value of the KRG's production entitlements under the Shaikan PSC (for which the KRG receives payment directly from the market) as a payment to the KRG.

(2) The realised prices for crude oil sales remain subject to audit and reconciliation.

(3) Barrels of oil.

(4) Per the Crude Oil Sales Agreement (dated 10 January 2018), road tax was payable on export sales of Shaikan crude oil transported by road from 15 November 2017 onwards at $7/ton. The road tax was paid in kind, as the value of the road tax was deducted in calculating the value of production entitlements payable by the KRG to Gulf Keystone.

(5) No cash payments were made by Gulf Keystone to the KRG. Instead, the value of these fees was offset against the value of production entitlements owed by the KRG to Gulf Keystone for crude oil delivered.







Enquiries:



Gulf Keystone Petroleum:

[phone]

Jón Ferrier, CEO



Sami Zouari, CFO







Celicourt Communications:

[phone]

Mark Antelme

Jimmy Lea

[oil_investor] 28/6/2018 23:53

roverite12: the Renaissance was of course followed by the Enlightenment. Maybe that will happen here as well?

btw the CPR gives a financial value for the 3P Reserves. And it explains that “Possible Reserves are those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high estimate scenario. In this context, when probabilistic methods are used, there should be at least a 10% probability that the actual quantities recovered will equal or exceed the 3P estimate”.

Moreover, the Contingent Resources - which GKP are welcomingly now featuring perhaps rather more prominently than has sometimes been the case - are explained in the CPR as “contingent on the definition of development plans and the demonstration of commerciality”. So ERC Equipoise are not saying that they are anything to do with whether or not the oil will flow, but rather that without an appropriate commercial development plan they can’t include them as 2P.

As regards the Triassic, GKP now say that it contains light oil of 38 to 43 degrees API and also Condensate. The latter was incorrectly categorised in the CPRs as “gas” and was hence excluded from the liquids figures. At ambient pressure and temperature at surface, combined with heat from the reservoir being present in the hydrocarbons coming up the well, the Condensate would have been in the gaseous state at surface and it appears that GKP assumed it was gas. The volume of Condensate in the Triassic is clearly substantial and one would expect that the next CPR will categorise it correctly as Condensate - and provide a volumetric figure as a liquid.

Even though the Condensate will need some cooling-down, I think things are warming-up a little.

[roverite12] 28/6/2018 23:30

Thank you , Oilcaninthemist .

Things are looking good here now and the derampers' work has proved to be spectacularly counter productive .

We are still massively undervalued .

That is why we are ALL here , albeit with different motives

[oilcaninthemist] 28/6/2018 23:15

welcome back!

[roverite12] 28/6/2018 22:49

Bigdog526 Jun '18 - 15:25 - 567359 of 567524


You shouldn't count your barrels until they can definitely be produced.


---


P2 has value, all the rest is hypothetical, unproved and have no long term tests to prove they will flow, can be recovered and will be commercial. Therefore they have little or zero value.




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The Great Dog5hite has never satisfactorily explained why he wrote many thousands of posts stating the exact opposite to his views now

Below are just a couple of examples of his previous views on the value of oil in the ground . At the time GKP had not produced a single barrel of oil .

Care to comment , Dog5hite ?











"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"






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








"Whichever way one cuts the cake, either using $5 a barrel reserves or the $1.5 resources/OIP we get a value around the £19-£20 a share mark. So to me and for even a quick low takeaway we have to be looking at least £15 a share with upside should the Chinese (or even now the Koreans) come for the whole shop"

[oil_investor] 28/6/2018 20:56

fujairah: “lower for longer” lol

[gkphero] 28/6/2018 20:29

Also from LSE today -


Nickel_Investor
Posts: 1,917
Opinion: No Opinion
Price: 248.00
Lemming
Today 16:21

I have GENL also but do think GKP will overtake them soon (in terms of actual SP). You seen the difference in volume between the two? GKP is many multiples higher on average which confirms how much demand is beginning to come in here. GENL has done a much larger move off it's lows, GKP is now starting to catch. Both big cash producers, both should do very well.

[oil_investor] 28/6/2018 19:16

The Texas Keystone 5% of Shaikan was assigned to Gulf Keystone in February 2010.

[therealminotaur] 28/6/2018 18:29

🐶🐶🐶
BIGDOG IS A THICK YANK. Employed to batter sentiment 24/7 US eastern time😂㈳4;😂
He is constantly here closing in on 22,000 postings because Gulf equity is worth a fortune in a trade sale.
THAT SALE IS IMMINENT.BUY AS MANY AS YOU CAN AS SOON AS YOU CAN ----SENTIMENT BASHERS ARE ACROSS ALL GKP FORUMS - they are A HUGE BUY SIGNAL!!!

[kiltless highlander] 28/6/2018 17:44

All true Bigdog, and if I were a betting man, it would be the usual suspects bailing out of this for a profit mid morning time.....

you can guarantee 'the players'!

[bigdog5] 28/6/2018 17:36

Uncle and his inthemist mate have taken up residence in room 101.

[oilcaninthemist] 28/6/2018 17:34

newbies Vs old dogs?

[bigdog5] 28/6/2018 17:25

More newbies turn up all in order to assist in misleading the clueless ones, LOFL. Such transparent desperation. Room 101 beckons for them.

[therealminotaur] 28/6/2018 16:45

Theseus is struggling under the weight of Canary Wharf 😂😂😂😂

FCA enjoyed the process