Gulf Keystone Petroleum Share Discussion Threads

[habshan] 02/4/2022 18:43

Thanks highlander.

Jon Harris said he would update us on it later this year so it sounds like it could take a while depending on parts availability.

Although I find it hard to imagine that the facility manufacturer wouldn't have a spares and maintenance operation here in the Gulf.

[highlander7] 02/4/2022 18:06

Habshan ,

Changing Separator internal Design would probably take anything from 2-3 days to a week or more. Depending on what they have to do. The plant would have to be shut down obviously and they would have to have the parts required. This latter point may be an issue because of the lead time (lag) with the order that could be months. I would be surprised if they are an "off the shelf" item but they may be readily available with the current downturn in the Industry.

H7

[habshan] 02/4/2022 17:00

Digby - "The last time the previous COO time spoke, the company had given up trying to find the gas cap and was speculating as to whether there actually was one."

From the webcast:-

Jon Harris - Since the earlier proposal to sweeten the gas we've done a re-evaluation of the reservoir, the performance of the reservoir and what we're seeing and we've done some more modelling and some studies and we now believe there isn't an issue with re-injecting the gas into the reservoir. So that's what's in the FDP proposal and in fact we're out tendering that solution as we speak. The KRG are absolutely happy with that solution and as I say we are currently tendering that, we have to do it in line with KRG approvals and they are very happy for us to pursue gas re-injection.

Question:- "So the idea would be that you would inject the sour gas at the crest and that it would create a gas cap, is that the plan."

Jon Harris - "Simplistically yes, we would collect up the sour gas that we currently flare, dry it and compress it and reinject it into the top of the reservoir, but we won't be creating a gas cap as we believe that a gas cap already exists, we have dropped the pressure in the reservoir since inception by about 350psi which means it is now at the bubble point and that means that a gas cap MUST already exist and we are going to put a new well into that to dispose of the sour gas."

So there we go. The KRG have already approved the gas handling part of the FDP and GKP have sent off the scope of works to contractors for them to price up and work on their tenders.

And the MNR have approved the new well locations so GKP have already started on the well pads so that when they get final approval they can hit the ground running and start drilling.

All looking good so far.

[nestoframpers] 02/4/2022 16:59

quote From 124626 BBBS

IN A NUTSHELL: DGA WAS CONSERVATIVE. RSC WAS EVEN MORE CONSERVATIVE. TELL ME RICH, WHY EVER DID YOU USE A WATER SATURATION CUT-OFF AT ALL? WHEN YOU KNOW THAT THE OWC IS WAY WAY DISTANT DOWN BELOW - AND THAT ANY AND ALL WATER OBSERVED THUS FAR MUST BY DEFINITION BE AT IRRIDUCIBLE SATURATION (IT'S THERE, BUT IT CANNOT MOVE DUE TO THE CAPILLARY FORCES HOLDING IT IN PLACE) ? WHAT I AM SAYING IS THAT, FROM FUNDAMENTAL PRINCIPLES, ALL NET RESERVOIR MUST ALSO BE NET PAY BY DEFINITION WHEN YOU ARE HIGH ABOVE THE OWC. SO, FOR EXAMPLE, BY REFERENCE TO TABLE 2 IN YOUR JANUARY 2010 DGA REPORT, THE CURRENT TOTAL NET PAY OF 238.7 METRES SHOULD IMMEDIATEDLY JUMP TO 288.3 METRES (THE CURRENT NET RESERVOIR TOTAL THICKNESS). THATS NEARLY 20% OF CONSERVATISM RIGHT THERE MATEY.

SO, ARE THE SUITS IN 'THE CITY' WAITING ON A RYDER SCOTT REPORT? WELL GUYS ... WHAT IF THAT REPORT NEVER COMES ....? GKP WILL NOT BE TAKEN OVER ON THE BASIS OF A RYDER SCOTT REPORT - THE EXXONMOBILS, CHEVRONS, SHELLS, BPS ETC OF THIS WORLD - WILL MAKE THEIR OWN ANALYSIS.

[nestoframpers] 02/4/2022 16:45

GKP told us about the water from day 1 , they knew the aquifer was there but they couldn't deal with the pressures it creates at the bottom of the trap in SH1 and 7.

[thebabe] 02/4/2022 16:13

NO BUY BACKS ?............WHY?...... BECAUSE...SALE ANNOUNCEMENT IMMINENT.Look at div history last 10 months............Best YIELD on UK market bar NONE..Why no BUYBACKS?..........Because in T/O talks for mths + BID AGREED.Code allows providing NON abnormal dividends but NOT open mkt buybacks that would breach Takeover Code ?

[thebabe] 02/4/2022 16:12

Time is up for GKP. Tbh, time was up for GKP in 2009 when they discovered the world's last elephant field......Shaikan.Shaikan is probably the most valuable asset on earth in 2022.Agree JB

[johnbuysghost] 02/4/2022 16:06

Time is up for GKP. Tbh, time was up for GKP in 2009 when they discovered the world's last elephant field......Shaikan.

Shaikan is probably the most valuable asset on earth in 2022.

[kurdman63] 02/4/2022 16:05

It’s in a tail spin 😂

Production hasn’t increased since the John G days.

We told you years ago 55k was miles away.

We told you about water.

We also told you of a possible down grade on reserves.

We told you about SH9 missing the gas cap.

We told you about water issues at SH12.

We told you that SH13 wouldn’t flow anytime soon even when the CEO said it was imminent.

We told you that SH14 was going to have problems.

We told you no FDP years ago including a new CPR.

We told you that the COO would be gone by the next AGM.

We also told you that no one was interested because of the above problems.

I’m telling you that SH15 will not be a good well.

1k increase in 12 months lol.

All the above have been proven correct despite the blog spin 😂🖕

[johnbuysghost] 02/4/2022 16:02

Time is up for GKP. Tbh, time was up for GKP in 2009 when they discovered the world's last elephant field......Shaikan.

Shaikan is probably the most valuable asset on earth in 2022.

[officerdigby] 02/4/2022 15:54

Ha! But same thing was said when CEO changed when CFO changed and Now COO.

Don't you think the COO has made enough apparent mistakes?

The last time the previous COO time spoke, the company had given up trying to find the gas cap and was speculating as to whether there actually was one.
...And he was giving presentation on gas treatment, plan.

[habshan] 02/4/2022 15:50

"You can change a Separator function by changing the internal design of it. For example to separate more gas and less water and vice versa."

Hi highlander.

As the company is only talking about "trace" quantities of water then it sounds as though your suggestion would do the job, maybe that's the sort of thing that Jon Harris was talking about as an alternative solution until the water handling facilities are installed next year. It would also explain him stressing that the solution would only represent a very small proportion of this year's $85-95 million budget ie. it won't be expensive.

Jon Harris - "At this point in time we've put out expressions of interest with contractors and also tendering a different solution."

How long do you think that would take to execute after contract award.

If they've already put out tenders for the job then that means they have a scope of works that the contractors can price and that means that they know what they want to do and they also know that it won't cost a lot.

Jon Harris certainly didn't seem at all fazed by the situation.

[highlander7] 02/4/2022 15:33

ODigby every Process Train has a Separator to extract gas and water from the oil. Not all wells have produced water i.e water that was already there , and they dont use water based mud nowadays its usually oil based.

You can change a Separator function by changing the internal design of it. For example to separate more gas and less water and vice versa. It sounds like they have found water where they were not expecting it. Which would be a concern because it means the downhole logs missed something.

A new COO is interesting because usually a new owner will replace the existing one with their own man after a suitable handover period.

H7

[thebabe] 02/4/2022 14:44

GULF KEYSTONE will be subject an agreed TAKEOVER before the end of this month..

[thebabe] 02/4/2022 14:43

NO BUY BACKS ?............WHY?...... BECAUSE...SALE ANNOUNCEMENT IMMINENT.Look at div history last 10 months............Best YIELD on UK market bar NONE..Why no BUYBACKS?..........Because in T/O talks for mths + BID AGREED.Code allows providing NON abnormal dividends but NOT open mkt buybacks that would breach Takeover Code ?

[thebabe] 02/4/2022 14:43

Why does anybody really care so much about the minutiae of operational works?That's why we employ experts..........I found the disappearance of COO at presentation of interest - already retired ?New arrival end of April.I think much corporate news prior.Very interested to see who , how many , and actually if , we see any LTIP new awards next week.Previous years often first thing seen immediately post FY results.

[officerdigby] 02/4/2022 14:37

OK finally I notice SC has gone.. Not paying attention..
Surely that in itself has got to be worth a rerate!.

H7 - it just my understanding of drilling not based in real experience.

GKP has said no produced water in any wells for a while in numerous presentation

Now it is saying a trace for SH12 and shut in because they have not has dedicated water handling facilities before.

Makes you think there is no water.

however I'm prepared to accept water from drilling etc. OR something that is normally separated and not 'counted' per se.

[giant_canine] 02/4/2022 14:10

NO BUY BACKS ?............WHY?...... BECAUSE...SALE ANNOUNCEMENT IMMINENT
.
Look at div history last 10 months............Best YIELD on UK market bar NONE.
.
Why no BUYBACKS?..........Because in T/O talks for mths + BID AGREED
.
Code allows providing NON abnormal dividends but NOT open mkt buybacks that would breach Takeover Code ?

[giant_canine] 02/4/2022 14:09

GULF KEYSTONE will be subject an agreed TAKEOVER before the end of this month.
.

[giant_canine] 02/4/2022 14:09

Why does anybody really care so much about the minutiae of operational works?
That's why we employ experts..........
I found the disappearance of COO at presentation of interest - already retired ?
New arrival end of April.
I think much corporate news prior.
Very interested to see who , how many , and actually if , we see any LTIP new awards next week.
Previous years often first thing seen immediately post FY results.

[kurdman63] 02/4/2022 14:08

The MNR has always expressed a concern that they would over produce the field (ie suck to hard) and get water in the fractures.

What happened to the 55k 🤷‍a94;️

Did someone mention a FDP ???

[giant_canine] 02/4/2022 14:06

Why does anybody really care so much about the minutiae of operational works?
That's why we employ experts..........
I found the disappearance of COO at presentation of interest - already retired ?
New arrival end of April.
I think much corporate news prior.
Very interested to see who , how many , and actually if , we see any LTIP new awards next week.
Previous years often first thing seen immediately post FY results.

[highlander7] 02/4/2022 13:59

OD ,I thought it was from Doggie implying they dont have any means of dealing with Produced water , which as you correctly state is usually present , particularly when they used to use water based mud. In any case existing Separator internals can be changed for dealing with larger than normal amounts of water.

It sounds to me like they are not currently concerned about the water volume but purely where it came from.

H7