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Share Name Share Symbol Market Type Share ISIN Share Description
Gulf Keystone Petroleum Ltd LSE:GKP London Ordinary Share BMG4209G2077 COM SHS USD1.00 (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 66.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
66.00 67.90 0.00 0.00 0.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 196.47 62.50 27.32 2.3 148
Last Trade Time Trade Type Trade Size Trade Price Currency
17:43:34 O 1,952 63.125 GBX

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02/4/202008:13THE NEW GKP / Drilling for Super Giants (moderated)601,202
01/4/202019:23GKP - from hero to zero?33,754
01/4/202015:25THE NEW GKP / Drilling for Super Giants (moderated) MK 2622
31/3/202015:11Ј25M property spend in the last 3 years15
26/3/202010:33GKP Charts View2,593

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06:17:3763.131,9521,232.20O
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06:17:3761.6610,4126,419.94O
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DateSubject
01/4/2020
09:20
Gulf Keystone Petroleum Daily Update: Gulf Keystone Petroleum Ltd is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker GKP. The last closing price for Gulf Keystone Petroleum was 66p.
Gulf Keystone Petroleum Ltd has a 4 week average price of 47.30p and a 12 week average price of 47.30p.
The 1 year high share price is 270p while the 1 year low share price is currently 47.30p.
There are currently 224,203,633 shares in issue and the average daily traded volume is 1,428,612 shares. The market capitalisation of Gulf Keystone Petroleum Ltd is £147,974,397.78.
04/1/2020
11:29
urals: ess Ads, More Data, More Tools Register for FREE   Share PricesGulf Keystone Petroleum Share PriceGulf Keystone Petroleum Share Chat?Gulf Keystone Petroleum Share Chat (GKP)?GKP SharePrice?GKP ShareNews?GKP ShareChat3?GKP ShareTrades281?GKPLive RNSGKP Information  ?Buy GKP Shares?Add GKP to Watchlist?Add GKP to Alert?Add GKP to myTerminal Share Price Information for Gulf Keystone Petroleum (GKP)? Share Price is delayed by 15 minutesGet Live DataShare Price:210.00Bid:208.00Ask:210.00Change:-1.00 (-0.47%) Spread: 2.00 (0.96%)Open: 210.00High: 215.00Low: 208.00Yest. Close: 211.00?Last checked at 11:29:04Share Discussion for Gulf Keystone PetroleumRegular Premium Filters Thread ViewPost Message2550100123surreyscotPosts: 1,831Price: 210.00Strong BuyGAS FLARINGToday 10:21Mikey, you might as well address the following while you're in the mood to reply in detail. What have you got to say about interest by the following companies in GKP:* ExxonMobil (ask "The Minotaur" if you're not sure, he reportedly knew all about it)* Chevron* "The Chinese" (there are several media reports from reliable news channels)* Crestal Energy* T5* RAK* DNO* TAQA* any others of which you might be awareOf course GKP isn't publicly sold. But you do not work in the industry, so you have no personal experience of M&A. Oil companies worldwide are looking everywhere for good assets, there are thousands of experts examining potential assets full-time. Why would Shaikan be something that nobody wants?The KRG can currently just about muster 250k bopd of production to put into the export pipeline alongside the Kirkuk oil. This 250k bopd comes from Tawke, Taq Taq, Atrush, Swara Tika, Shaikan and some minor producing assets. Quite when the brakes will be taken off Shaikan by the KRG, we will just have to wait and see. I suggest that the latest excuses have been artificial , for example a delayed Chinese rig when it was finally ready and the imaginary gas-flaring issue. If the KRG had to increase production they would simply increase the flaring.Gas flaring ( dumping the gas to atmosphere) is always a concern but is managed by compliance by existing environmental regulations. If there are issues , then typically an Action Plan and timescale are submitted. I have NEVER seen Gas Flaring raised as an issue to delay an FDP OR delay production.So making an exception and environmental case with GKP isn't really credible in my book ( why haven't they applied it to anyone else ? ). Yes, reduced gas flaring will be a long term objective but is not a justification to hold up the Kurdistan Region's revenue.I suggest you stop listening to a Car Part Salesman and his cronies.IMO
24/12/2019
11:23
roverite12: Memo to Dog5hite Due to recent slight rise in GKP share price the half day leave promised to you on XMas day has been rescinded . You must now work your usual 14 hour shift . Sorry Merry Xmas
03/11/2019
14:12
atino: (Quote 🙇) Can the Gulf Keystone Petroleum (GKP) share price double your money? A few short years ago, Gulf Keystone Petroleum (LSE: GKP) was tottering on the edge of going bust, with the company delivering oil to the Kurdistan Regional Government (KRG) without being paid. The money owed was building up and Gulf’s cash reserves were dwindling, and it looked like the only thing that could save it was an about-face from the KRG and the commencement of payments. Turnaround 😉🤫 Thankfully, that’s exactly what happened, and the KRG has been good to its word ever since – it must sooth the heart of every Gulf Keystone investor to see that “Shaikan Payment Update” headline every month 👍🤑🤑🤑 On top of that, under the leadership of chief executive Jón Ferrier, the company has refinanced its debt, is generating steady profits, and has even reached the point of paying dividends – a situation that must turn investors in a lot of other small oil companies green with envy. A few factors have resulted in a share price retrenchment in recent months, as earnings are expected to fall this year. There have been some delays, and a maintenance and upgrade phase has led to some production capacity being taken temporarily offline. But that’s clearly short-term stuff and it should leave the company in a better state to raise its production levels in the future. Healthy production And even after the downgrade, Gulf’s estimated production rate still comes in at 30,000 to 33,000 barrels per day. I think it’s interesting to compare that with UK Oil & Gas, whose test well production of Portland and Kimmeridge hydrocarbons at Horse Hill has reached a little over 71,000 barrels – total, ever. The faltering oil price hasn’t helped as the world production glut continues, and prices around $60 aren’t inspiring confidence. Still, even on reduced earnings expectations for this year, the shares are trading on a forward price-to-earnings (P/E) ratio of under 12. What’s more, if the mooted 70% jump in EPS for 2020 comes off, GKP shares would be on a P/E ratio for that year of only 7 – unless, of course, the price doesn’t rise in the meantime. Buyback It’s not just me who thinks Gulf Keystone shares are on a bargain price now. The company itself does too, and it’s been steadily purchasing its own shares since a buyback programme was announced in July. So what we’re looking at here is a smaller oil company that’s raking in cash, saw its year-end cash balance reach $295.6m last year (from $160.5m a year previously), says it’s fully funded for all phases of its Shaikan expansion, and has enough of the folding stuff to be paying dividends and buying back its own shares. Expansion Add to that the planned expansion of production capacity, and as long as we see no major disasters in the meantime, if 2020 profits come close to what is currently being anticipated then I can see a significant share price up-rating on the cards. The chance of Gulf Keystone doubling your money over the next five years? I reckon it’s probably higher than with any other oil company on the market right now. Alan Oscroft has no position in any of the shares mentioned. https://www.fool.co.uk/investing/2019/10/31/can-the-gulf-keystone-petroleum-gkp-share-price-double-your-money/
21/8/2019
08:25
mcfly02: hxxps://simplywall.st/stocks/gb/energy/lse-gkp/gulf-keystone-petroleum-shares/news/those-who-purchased-gulf-keystone-petroleum-longkp-shares-five-years-ago-have-a-97-loss-to-show-for-it/ Those Who Purchased Gulf Keystone Petroleum (LON:GKP) Shares Five Years Ago Have A 97% Loss To Show For It Simply Wall St August 21, 2019 Gulf Keystone Petroleum Limited (LON:GKP) shareholders should be happy to see the share price up 13% in the last month. But that doesn’t change the fact that the returns over the last half decade have been stomach churning. Like a ship taking on water, the share price has sunk 97% in that time. The recent bounce might mean the long decline is over, but we are not confident. The million dollar question is whether the company can justify a long term recovery. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don’t have to lose the lesson. View our latest analysis for Gulf Keystone Petroleum To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Gulf Keystone Petroleum became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move. Revenue is actually up 40% over the time period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity. LSE:GKP Income Statement, August 21st 2019 LSE:GKP Income Statement, August 21st 2019 It is of course excellent to see how Gulf Keystone Petroleum has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Gulf Keystone Petroleum’s financial health with this free report on its balance sheet. What about the Total Shareholder Return (TSR)? We’ve already covered Gulf Keystone Petroleum’s share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. We note that Gulf Keystone Petroleum’s TSR, at -97% is higher than its share price return of -97%. When you consider it hasn’t been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising. A Different Perspective While the broader market lost about 1.3% in the twelve months, Gulf Keystone Petroleum shareholders did even worse, losing 8.6%. Having said that, it’s inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, longer term shareholders are suffering worse, given the loss of 50% doled out over the last five years. We’d need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Before deciding if you like the current share price, check how Gulf Keystone Petroleum scores on these 3 valuation metrics. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
05/8/2019
20:02
urals: Agree Chinese . I'd forgotten that the WI is 80% ,just read the annual report that confirms it explicitly.Thank you. Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.
03/8/2019
20:30
chinese_takeaway: https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Is BIGDOG  up to 25,000 ,( he's paid by JPMORGAN to say don't buy or hold this stock by the way  ) posts yet ? 25000 ?But JPMORGAN have somehow managed to buy 15,000,000 and countingit appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.
03/8/2019
20:28
chinese_takeaway: Is BIGDOG  up to 25,000 ,( he's paid by JPMORGAN to say don't buy or hold this stock by the way  ) posts yet ? 25000 ?But JPMORGAN have somehow managed to buy 15,000,000 and countingit appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.Is BIGDOG  up to 25,000 ,( he's paid by JPMORGAN to say don't buy or hold this stock by the way  ) posts yet ? 25000 ?But JPMORGAN have somehow managed to buy 15,000,000 and countingit appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.
03/8/2019
20:26
chinese_takeaway: Is BIGDOG  up to 25,000 ,( he's paid by JPMORGAN to say don't buy or hold this stock by the way  ) posts yet ? 25000 ?But JPMORGAN have somehow managed to buy 15,000,000 and countingit appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.
03/8/2019
20:08
chinese_takeaway: So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.
03/8/2019
20:05
chinese_takeaway: So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.So Urals it appears that $24bn is not out of the question on that basis.north of £80 if so.Anyway it seems the deal is a month at most from announcement, so whatever the outcome will soon be clear.Actually Chinese these valuations are absurdly low.Back then WI was 54.3%, now its 80%.So you can increase these by 80/54.3= 47% higher ?https://twitter.com/GoodnightCharl1/status/1157302206665764864?s=19Gulf Keystone Petroleum: What Is The 14 Billion Barrel Shaikan Field Worth?Jul. 23, 2012 10:16 AMGulf Keystone Petroleum Limited (GFKSY)CVX, XOM, GEGYFGulf Keystone Petroleum (OTCQX:GUKYF) (OTCQX:GFKSY) is a UK company exploring for oil in the Kurdistan region of Iraq. Gulf Keystone's main exchange is London and they are listed there under GKP.Long story short, in 2009, GKP discovered a massive field in the Shaikan PSC block of Kurdistan. Current estimates for OOIP are around 14 billion barrels with recoverable amounts of 2.25 billion barrels. You can read more about the field here.I think there is a lot of misinformation on what exactly GKP owns. In the following paragraphs, I will explain how much oil GKP has at Shaikan due to the terms of the Production Sharing Contract (NASDAQ:PSC) and also try to estimate what Shaikan is worth:Slide 6 of their most recent presentation shows recoverable oil in Shaikan of 2250 million barrels. The PSC is laid out here on slide 8. The Kurdistan Regional Government (KRG) takes 10% off the top for royalty. Of the remaining 90%, 40% of this is allocated for the contractors to recover costs. The remaining 60% is the profit oil. Of this 60%, the contractors portion is determined by an R factor which is based on the contractors revenues divided by costs. The most they can receive of this 60% is 30% and the minimum is 15%.Let's work in gross terms for now (all numbers are in millions). From above we have 2250 recoverable oil in Shaikan. Take off 10% for KRG royalty and we are down to 2025. The cost recovery oil is 40% of this which is 810 leaving 1215 for profit oil. The contractors maximum claim to the profit oil is 30% which is 365.So far, the maximum the contractors have claim to is 810 barrels of cost recovery oil and 365 profit oil. In 2010, the PSC was amended and a Capacity Building Bonus was added that is 40% of the contractors profit oil. This leaves the contractors with 60% of the maximum profit oil which is 219.In total, the contractors can count 1029 barrels of oil as reserves down to a possible low of 919 by using the lowest possible percentage of profit oil. GKP's diluted WI is 54.3% in the Shaikan block. So in total, on the high side, 559 million barrels are net to GKP and the low side is 499 million barrels.Obviously it is the KRG who wins with these PSCs, however, the companies have to agree to them to be able to explore the blocks. The actual net reserves (559 MMbbls) GKP will have is around 46% of their WI barrels (2250 * 54.3%= 1222 MMbbls). It seems incredibly low, but this is typical of these types of contracts and the Shaikan PSC is actually much better than what Genel (OTCPK:GEGYF) has on the Taq Taq block. Genel is only netting out around 22% of their WI reserves.On the net worth side of these reserves, we can also look to Genel for some NPV values on Kurdistan reserves. According to the Genel website (Taq Taq and Tawke), Genel is valuing the finds at around $30/bbl NPV10. Applying this same valuation to Shaikan would value GKP's 559 million barrels at $16.77 billion. Current GKP market cap is around a paltry $3 billion. That is tremendous upside on Shaikan alone. GKP has many other assets along with Shaikan, including deeper targets below Shaikan.On the flip side, there are also many other things that have kept the valuation of the company down: the lawsuit with Excalibur, the lack of export capacity, the inability of Kurdistan and Iraq to agree on the oil and gas law, and just plain old political instability.The lawsuit with Excalibur seems like a shakedown that I am confident GKP will win. Excalibur has been asked to reveal who is backing them monetarily and I doubt they will do that so I believe the case will be dismissed.The lack of export capacity is going to be changed with a pipeline to Turkish ports that should be completed in late 2013. The instability of the region is, no doubt, a huge overhang. The recent entries of Chevron (CVX) and ExxonMobil (XOM) to Kurdistan should bring a little bit of calm to the region. The Iraqi government has already been dealt a huge blow in their last lease offering by placing a clause in the leases saying the contractors could not work with the Kurds. This was almost universally shunned and the sale was woefully undersubscribed.GKP has found massive amounts of oil at Shaikan and still has other assets to explore and appraise. As the aforementioned roadblocks slowly disappear, I would expect the share price to rise dramatically to bring more value to Shaikan. A 5x rise from here would not be out of the question. Watch for a takeover of GKP as well. XOM, CVX, or even another major would certainly love to get a piece of the massive reserves at Shaikan.
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