Ebenezer3
3 months ago
https://www.fool.co.uk/2024/02/09/as-the-gulf-keystone-petroleum-gkp-share-price-keeps-falling-is-it-too-cheap-to-ignore/
Gulf Keystone Petroleum (LSE: GKP) was one of my favourite oil stocks at one time, but just look at what’s happened to the share price.
We’ve seen at a 55% fall in the past five years, mostly in the past two. And GKP shares are down 99% since their all-time high in 2012.
Valuation crash
Forecasts for 2024 put the shares on a price-to-earnings (P/E) ratio of just 1.7. And the big dividends that shareholders used to enjoy have stopped, at least for now.
So what went wrong? Well, plenty. Gulf Keystone operates the Shaikan oil field, in the Kurdistan Region of Iraq. All was going well, paying the regional government its share and exporting mainly via a pipeline through Turkey.
But then the Iraqi government asserted its authority over oil exports. And no longer could the Kurdistan Regional Government (KRG) export oil itself.
The pipeline closed.
Will it reopen?
The existence of the company is at stake here. And with the export taps closed, the board is trying to keep the lights on for as long as possible.
There have still been some local sales, but only low volumes at low local prices. Still, in its 31 January update, Gulf told us that “we are actively working to increase volumes and remain focused on at least covering our estimated monthly capex and other costs of c.$6 million in 2024“.
Talks with the Iraqi government to reopen oil exports are dragging on. But at least they’re happening.
And the GKP board was sufficiently optimistic: “With the resumption of exports and normalisation of KRG payments, GKP will consider incremental field investment to realise Shaikan’s substantial reserves base and return to previous production levels“.
No-brainer buy?
As of 30 January, Gulf had $82m in cash on the books, with no debt. So it sounds like it can cover its reduced operational costs, but maybe not for long.
The company is also owed an outstanding $151m from the KRG for the six months before the pipeline was switched off. Whether it will get that unless there’s an agreement to resume exports must be in doubt. But it’s an extra bit of liquidity if things do get moving again.
Would I’d buy? Well, the oil exploration business has always been risky. And operating in politically unstable parts of the world is one of the big risks.
I’d say this one though is probably about as close to a 50/50 gamble as I’ve seen.
Multibagger or bust
If the export taps open again, and especially if Gulf gets back to those hoped-for “previous production levels“, I see a decent possibility of a nice multibagger.
But if it doesn’t happen, the only real alternative I see is a wipeout. If I bought now, I’d only do so with money I could afford to lose… with a fair chance of losing it.
For those with the courage to stump up a few quid now, I think the key question is, “do I feel lucky”?
The post As the Gulf Keystone Petroleum (GKP) share price keeps falling, is it too cheap to ignore? appeared first on The Motley Fool UK
Motley Fool UK 2024
Ebenezer3
3 months ago
Kurdistan Oil Flows Not Expected to Resume Anytime Soon
By Simon Watkins - Feb 06, 2024, 5:00 PM CST
Perhaps no subject in the complex world of global oil involves so many intricate moving parts as the extraordinary relationship between the Federal Government of Iraq (FGI), based in Baghdad, and the government of Iraq's northern semi-autonomous region of Kurdistan (KRG), centred in Erbil. It is only when something such as the suspension of major flows of oil from Kurdistan to Turkey occurs, as began on 25 March 2023, that many analysts start trying to unravel what has caused it. And they find themselves entering an Alice In Wonderland world in which anything is possible, but nothing is as it seems. In this world, it is very easy to lose sight of the wood for the trees sometimes, and this appears to be what has happened in a letter sent by foreign oil firms in Kurdistan to the U.S. Congress asking for help in having the export oil embargo lifted.
Ironically, in fact, it is only towards the very end of the letter from the Association of the Petroleum Industry of Kurdistan (APIKUR) that the group, which largely comprises the oil interests of several foreign firms directly or indirectly, inadvertently hits on the precise reasons why a full, clear, and transparent lifting of the embargo is unlikely to happen soon, if ever. The letter highlights that the halt in exports that affects between 400,000-500,000 barrels per day (bpd) of oil from Iraqi Kurdistan must be lifted because it puts at risk over US$10 billion of U.S. and international investments in Kurdistan and because it is severely impacting the region's economy and stability at a time when regional tensions are already heightened. Bingo!
By keeping the West out of energy deals in Iraq - and closer to the new Iran-Saudi axis - the end of Western hegemony in the Middle East will become the decisive chapter in the West's final demise," said a very high-ranking Kremlin official at a meeting with senior government figures from Iran, just after the 10 March 2023 signing of the Iran-Saudi Arabia relationship resumption deal, brokered by China. The comment was exclusively relayed to OilPrice.com, just before the 25 March oil export embargo from Iraqi Kurdistan by a senior source who works closely with the European Union's energy security apparatus, and we passed it on to our esteemed readers. Nothing whatsoever has changed to modify the view of either the Iraqi central government in Baghdad, or the senior figures in Tehran, Moscow, and Beijing who are helping to implement the 'One Iraq Plan' as it is referred to behind closed doors. If anything, the rising uncertainty in the Middle East emanating from fears of a dramatic escalation in the Israel-Hamas War are serving to expedite key elements of the plan, with the U.S.'s focus on that War.
In essence, the bare mechanics of the 'One Iraq Plan', as broadly delineated by the senior Kremlin figure, are to cut off all sources of external revenue from the government of Iraqi Kurdistan - most significantly from independent oil sales by foreign companies operating there - before absorbing it into the rest of the country, under the sole rule of Baghdad, as analysed in depth in my new book on the new global oil market order. If that is understood, then everything that has subsequently happened in Iraq since the 10 March relationship resumption deal between Iran and Saudi Arabia makes perfect sense. The basic reason for this is that Iraqi Kurdistan has long been regarded by Russia, China, and Iran, as a key U.S. ally in the Middle East, and this will no longer be tolerated, which gives rise to two further choices.
The first is to give Iraqi Kurdistan its independence and sever all links between it and the rest of Iraq. This, though, is not an option on the table for three key reasons. One is that the main northern overland export route into Europe for all of Iraq runs through the Kurdistan region and into Turkey. The original Iraq-Turkey Pipeline (ITP) - controlled by the FGI in Baghdad - consisted of two pipes (a 40-inch one started up in 1977, and a 46-inch one started up in 1987), from the Kirkuk oil fields (also nominally owned by the FGI) on the border of the Iraqi Kurdistan to Ceyhan, which had a combined nameplate capacity of 1.6 million bpd. The FGI-controlled pipeline's export capacity reached between 250,000 and 400,000 bpd when running normally, although it was subject to regular sabotage by various militant groups. The Iraqi Kurdistan's KRG, in response to the regular attacks on the FGI pipeline, completed its own single-side track Taq field-Khurmala-Kirkuk/Ceyhan pipeline in the border town of Fishkhabur. This was part of its drive to raise oil exports above 1 million bpd. Clearly, Baghdad will never give these vital oil export links away.
By keeping the West out of energy deals in Iraq - and closer to the new Iran-Saudi axis - the end of Western hegemony in the Middle East will become the decisive chapter in the West's final demise," said a very high-ranking Kremlin official at a meeting with senior government figures from Iran, just after the 10 March 2023 signing of the Iran-Saudi Arabia relationship resumption deal, brokered by China. The comment was exclusively relayed to OilPrice.com, just before the 25 March oil export embargo from Iraqi Kurdistan by a senior source who works closely with the European Union's energy security apparatus, and we passed it on to our esteemed readers. Nothing whatsoever has changed to modify the view of either the Iraqi central government in Baghdad, or the senior figures in Tehran, Moscow, and Beijing who are helping to implement the 'One Iraq Plan' as it is referred to behind closed doors. If anything, the rising uncertainty in the Middle East emanating from fears of a dramatic escalation in the Israel-Hamas War are serving to expedite key elements of the plan, with the U.S.'s focus on that War.
In essence, the bare mechanics of the 'One Iraq Plan', as broadly delineated by the senior Kremlin figure, are to cut off all sources of external revenue from the government of Iraqi Kurdistan - most significantly from independent oil sales by foreign companies operating there - before absorbing it into the rest of the country, under the sole rule of Baghdad, as analysed in depth in my new book on the new global oil market order. If that is understood, then everything that has subsequently happened in Iraq since the 10 March relationship resumption deal between Iran and Saudi Arabia makes perfect sense. The basic reason for this is that Iraqi Kurdistan has long been regarded by Russia, China, and Iran, as a key U.S. ally in the Middle East, and this will no longer be tolerated, which gives rise to two further choices.
The first is to give Iraqi Kurdistan its independence and sever all links between it and the rest of Iraq. This, though, is not an option on the table for three key reasons. One is that the main northern overland export route into Europe for all of Iraq runs through the Kurdistan region and into Turkey. The original Iraq-Turkey Pipeline (ITP) - controlled by the FGI in Baghdad - consisted of two pipes (a 40-inch one started up in 1977, and a 46-inch one started up in 1987), from the Kirkuk oil fields (also nominally owned by the FGI) on the border of the Iraqi Kurdistan to Ceyhan, which had a combined nameplate capacity of 1.6 million bpd. The FGI-controlled pipeline's export capacity reached between 250,000 and 400,000 bpd when running normally, although it was subject to regular sabotage by various militant groups. The Iraqi Kurdistan's KRG, in response to the regular attacks on the FGI pipeline, completed its own single-side track Taq field-Khurmala-Kirkuk/Ceyhan pipeline in the border town of Fishkhabur. This was part of its drive to raise oil exports above 1 million bpd. Clearly, Baghdad will never give these vital oil export links away.
blessing of Iran, Russia, and China. That has not been given, so there is no reason to expect it to end in any sustainable fashion any time soon. Conversely, however, the move to destroy any last vestiges of Iraqi Kurdistan independence remain in full swing. A clear statement on 3 August last year from Iraq Prime Minister, Mohammed Al-Sudani, highlighted that the new intended unified oil law - run, in every way that matters, out of Baghdad - will govern all oil and gas production and investments in both Iraq and its autonomous Kurdistan region and will constitute "a strong factor for Iraq's unity". As the senior E.U. source reiterated exclusively to OilPrice.com last week: "Baghdad has no interest at all in agreeing to any of Turkey's terms or in Iraqi Kurdistan resuming its independent oil sales either." He concluded: "As Baghdad does not see an independent Kurdistan in the future of Iraq, it sees the best solution as keeping the independent oil sales stopped and the Kurds financially paralysed.
https://oilprice.com/Energy/Crude-Oil/Kurdistan-Oil-Flows-Not-Expected-to-Resume-Anytime-Soon.html#amp_tf=From%20%251%24s&aoh=17072686612191&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Foilprice.com%2FEnergy%2FCrude-Oil%2FKurdistan-Oil-Flows-Not-Expected-to-Resume-Anytime-Soon.html
RS500
1 year ago
Gulf Keystone Petroleum Ltd. (LSE: GKP)
(“Gulf Keystone”, “GKP” or “the Company”)
Operational & Corporate Update
Gulf Keystone, a leading independent operator and producer in the Kurdistan Region of Iraq (“KRI” or “Kurdistan”), is today providing an update on operational and corporate activity and 2023 guidance following the shut-in of the Iraq-Turkey pipeline on 25 March 2023.
Jon Harris, Gulf Keystone's Chief Executive Officer, said:
“Gulf Keystone was on track to deliver another year of strong profitable production growth and robust cash flow generation until the Iraq-Turkey pipeline arbitration award resulted in the suspension of pipeline exports. March production prior to the pipeline suspension averaged c.53,700 bopd with plans to bring on SH-18 in Q2 2023 and ongoing facilities expansion activities.
The lack of crude oil exports for a month has further exacerbated delays in KRG payments to international oil companies with uncertainty on when consistent monthly payments will resume and when the current overdue amount of $102 million net to GKP will be paid.
While we continue to believe that the pipeline shut-in is temporary and the KRG will resume more normalised payments, we are prudently taking action to preserve liquidity by targeting a reduction of costs across the business. We are closely monitoring the situation and will take further appropriate action as required.”
Operational
Up to the Iraq-Turkey pipeline shut-in on 25 March 2023, gross average production in 2023 of c.49,200 bopd and in March 2023 of c.53,700 bopd, including five days in excess of 55,000 bopd
Following the suspension of exports, GKP produced at reduced rates into storage facilities prior to shutting in production at PF-1 on 31 March 2023 and at PF-2 on 13 April 2023
The suspension has resulted in a gross production deferment to date of around 1.6 million barrels, or approximately 4,400 bopd on a full-year basis
The Company continues to believe that the suspension of exports will be temporary and is ready to resume production immediately, although no official timeline to restart pipeline operations has been publicly announced by the Kurdistan Regional Government (“KRG”)
The Company understands that discussions between the KRG and the Iraqi Ministry of Oil are ongoing to implement the framework agreement announced on 4 April 2023
Upon the resumption of exports, production will be gradually ramped up with the objective of safely returning to full export capacity
The drilling of SH-18 was recently completed and the well is now being hooked-up. We expect the well to be available for start-up in Q2 2023, in line with prior guidance
Financial
The Company continues to engage with the KRG regarding the delays to oil sales payments
While the Company has received $66 million net from the KRG in 2023 for August and September 2022 oil sales, overdue receivables for the months of October 2022 to January 2023 total $102 million net on the basis of the KBT pricing mechanism
Net capital expenditures to the end of April 2023 are estimated at $45 million net, including completion of SH-17 and SH-18, well workovers, well pad preparation, long lead items and expansion of production facilities
Cash balance of $99 million at 26 April 2023
Outlook
Given the ongoing suspension of exports and continued delays to KRG payments, the Company is focussed on preserving liquidity and is targeting a reduction of costs across the business, while maintaining a strong focus on safety and long-term asset reliability
Consequently, the Company is significantly reducing planned net capital expenditures to focus on only safety critical and unavoidable contractual commitments
While our review is ongoing, we currently expect May to December 2023 net capital expenditures of $35-40 million
Full year 2023 net capital of expenditures are currently estimated at $80-85 million (prior guidance: $160-$175 million)
The Company is implementing initiatives to reduce Opex and G&A. However, until pipeline operations resume and the overall production impact from the export suspension is known, the Board is suspending production and gross Opex per barrel guidance
As part of its ongoing review, the Board is considering the previously declared final 2022 ordinary annual dividend of $25 million
The Board continues to review the implications of the current situation and is considering necessary operational, financial and legal measures to protect the Company’s interests during this period
JD400
8 years ago
OPEC Deal Could Fall Apart At The Seams As Iraq Revolts
By ZeroHedge - Sep 29, 2016, 11:31 AM CDT Al Luabi
While historically the major conflict within OPEC in recent years had been between Iran, whose oil production had been mothballed since 2013 as a result of the US embargo and which is now eager to regain its roughly 4mmbpd in production, and Saudi Arabia, which successfully picked up market share from Iran, a new source of contention within OPEC emerged last night when Iraq disagreed with OPEC's method of production estimates as reported last night.
And now it appears that Iraq - which in August produced between 4.4mmbpd and 4.6mmbpd depending on whose estimates are used, will not be easily placated. As Reuters details, Iraq, which overtook Iran as the group's second-largest producer several years ago but kept its OPEC agenda fairly low-profile, on Wednesday finally made its presence felt. "What it did, however, pleased neither Saudi Arabia nor Iran."
Iraq's new oil minister Jabar Ali al-Luaibi told his Saudi and Iranian counterparts, Khalid al-Falih and Bijan Zanganeh, in a closed-door gathering in Algiers that "it was an OPEC meeting for all ministers", a source briefed on the talks said. Luaibi, it turns out, is also the key OPEC member who "didn't like the idea of re-establishing OPEC's output ceiling at 32.5 million barrels per day (bpd), according to OPEC sources."
Continuing the point made first yesterday, Luaibi told the meeting that the new 32.5 mmbpd ceiling was no good for Baghdad as OPEC had underestimated Iraq's production, which has soared in recent years.
Confusion followed, according to Reuters sources, and after a debate OPEC chose to impose a ceiling in the range of 32.5-33.0 million bpd - a decision dismissed by many analysts as weak and non-binding. OPEC's current output stands at 33.24 million bpd.
As ministers including Falih and Zanganeh emerged smiling from the room and praised OPEC's first output-limiting deal since 2008, Luaibi called a separate briefing to complain about OPEC's estimates of Iraqi output.
"These figures do not represent our actual production," he told reporters. If by November estimates do not change, "then we say we cannot accept this, and we will ask for alternatives". Luaibi went even further and asked a reporter from Argus Media - whose data OPEC uses among other sources to compile estimates of countries' production - to disclose from where Argus' estimates were coming.
"Your sources are not acceptable. And if there is deviation from the government, then Argus will not work in Iraq," Luaibi told the Argus reporter.
Related: What Do Driverless Cars Really Mean For Transportation
What Luabi's was outraged by was the delta shown in the table below, which reveals a nearly 300 barrel difference between Iraq's self-reported oil production of 4.638mmbpd and that estiamted by OPEC which amounts to just 4.354mmbpd. As we said last night, just this one difference alone is enough to eliminate the lower end of the proposed OPEC production cut of 250kbpd. If one adds other member states such as Kuwait, UAE and Venezuela, the difference between the two sets of numbers rises to nearly 1 million barrels, or well above the proposed upper bound of the production "cut" agreed upon in Algiers.
In other words, unless Iraq (and thus, Kuwait, UAE and Venezuela all relent) to using OPEC production estimates, there will be no production cut unless Saudi Arabia is willing to eat the difference.
As Reuters puts it, "Luaibi's revolt shows the fragility of the OPEC deal."
And while the market appears unbothered by the details, between now and November, when OPEC meets formally in Vienna, the group will have to overcome huge obstacles to agree a binding deal.
Related: How The Oil Price Slump Affected The Ultra-Rich
Key among them will be to establish at least some semblance of country quotas to make sure members limit global oversupply, which has helped halve prices since 2014 to below $50 a barrel. Iran, which has been exempt from the production cut (explaining why it complied with the terms of the deal) insists it wants to raise output to around 4 million bpd as it emerges from European sanctions. The Saudis have proposed that Iran freeze production at 3.7 million bpd.
Riyadh is offering to cut its own production to 10.2 million bpd from 10.7 million but most analysts argue it will fall to such a level anyway as the summer heat eases, reducing the need for cooling. It would have to cut much more if the "outlier" nations demand that their own production estimates are used.
While for some yesterday's deal is confirmation that the Saudi strategy implemented in November 2014 has been a failure, such as Michael Wittner, head of oil research at Societe Generale, who said that the decision shows Saudi Arabia is turning its back on letting the market manage supply, it remains to be seen what if any actual production cut will actually be reached. For now, OPEC has achieved what it wanted: a spike in oil for the next two months. When the time comes to dealing with the consequences of another disappointed market reaction once OPEC reveals no final deal in Vienna in November, well at least OPEC will have sold a few billion barrels at far higher prices in the interim.
To summarize, as Reuters quoted one OPEC source, "The deal is a bit of a farce."
By Zerohedge
More Top Reads From Oilprice.com:
http://oilprice.com/Energy/Crude-Oil/OPEC-Deal-Could-Fall-Apart-At-The-Seams-As-Iraq-Revolts.html
JD400
8 years ago
Oil Hits 1-Month High As OPEC Blinks Vs. U.S. Shale
Oil futures were mixed Thursday after surging Wednesday amid some doubts about OPEC's production deal, though U.S. shale stocks rallied.
GILLIAN RICH
3:28 PM ET
The Organization of the Petroleum Exporting Countries agreed to a production ceiling, but is the deal a sign that the cartel has defeated U.S. shale or a testament to shale's resilience?
OPEC said in a news release late Wednesday that it will cap output at 32.5 million-33 million barrels per day to "accelerate the ongoing drawdown of the stock overhang and bring the rebalancing forward."
The cartel's daily production was 33.2 million barrels a day at the end of August. But the group won't execute the cuts until November, when full details are likely to be firmed up at an official OPEC meeting that month.
The agreement comes nearly two years after OPEC sank oil prices by refusing to trim output, choosing instead to defend market share and force higher-cost U.S. shale companies to pull back. Domestic production has fallen from last year's peak but is already starting to creep back up again, though it dipped 0.2% last week to 8.497 million barrels a day.
"I believe that OPEC has declared victory in the OPEC production war and they feel confident that they can cut production without fear that the shale oil producers will steal their market share," Phil Flynn, senior market analyst at the Price Futures Group, wrote in his daily energy report.
But while U.S. crude has struggled to top $50 a barrel, shale firms have been ramping up activity in low-cost plays like the Permian Basin, where oil can still be profitably produced.
U.S. rigs counts have been rebounding, and land oil rigs in operation will average 579 for 2017, up 29% from what's expected this year, according to a recent study by Platts RigData, a forecasting unit of S&P Global Platts.
OPEC has now realized that "U.S. oil is here to stay for the medium term at least and there will be no easy knockout blows," Omar Al-Ubaydli, an affiliated senior research fellow at George Mason University's Mercatus Center, said via email.
U.S. crude rose 1.7% to $47.83 per barrel, hitting a one-month high despite some doubts that the OPEC agreement will hold.
Exxon Mobil (XOM) fell 0.7% on the stock market today. Chevron (CVX) was down 1%, BP (BP) rose 0.6% and Royal Dutch Shell (RDSA) jumped 2.1%. Among top shale companies, Continental Resources (CLR) climbed 6.3%, EOG Resources (EOG) rose 1.1% and Diamondback Energy (FANG) was up 2.2%.
IBD'S TAKE: Exxon soared above its 200-day line and is near its 50-day line as oil rose on the OPEC deal. Continental Resources is above both lines and has a Relative Strength rating of 95 vs. Exxon's 41 as U.S. shale stocks continue to outperform oil majors. Learn more about top U.S. shale stocks in a recent Industry Snapshot.
While OPEC's agreed-upon cut is small, the big surprise was that the group could agree at all as tensions rise between Iran and Saudi Arabia, wrote Flynn, adding that the agreement should create a floor for oil prices.
But Al-Ubaydli doesn't see OPEC keeping its word and said it is merely taking markets on a "cheap ride" with a short-term rally in oil prices.
"There is a chance that OPEC officials are actually sufficiently deluded to think that they can pull this off and that they will have a rude awakening when it falls apart," he said.
The cuts also come at time when Saudi Arabia normally takes production offline after the high-demand summer season, said Jim Krane, a Middle East energy analyst at Rice University's Baker Institute, noting that the country's electricity is powered by crude.
"The kingdom was probably trying to use that natural trend to get something extra out of what they do anyway, to get some concessions from others, which tells me this is a short-term move," he told IBD. "Longer term I wouldn't expect the Saudis to budge much from their market share focus. "
http://www.investors.com/news/opec-deal-victory-over-shale-or-cheap-thrill-for-markets/
JD400
8 years ago
Iraqi Kurdistan’s Payments to Oil Drillers Fall Behind Again
Angelina Rascouet
@arascouet
September 22, 2016 — 7:38 AM MST
Gulf Keystone yet to receive July, August payments from KRG
Erratic payments hinder investment to increase production
International oil companies operating in Iraqi Kurdistan are once again facing irregular payments from the regional government, jeopardizing investment that could increase production.
Gulf Keystone Petroleum Ltd. has yet to receive payments from the Kurdistan Regional Government for July and August, Chief Executive Officer Jon Ferrier said in a phone interview today. “We do not know why we haven’t been paid,” Ferrier said. “We’re obviously in a close dialog with the ministry and we’re working on those payments.”
The last payments disclosed to investors by Genel Energy Plc and DNO ASA, two other drillers in the northern Iraqi region, are for June crude sales, according to regulatory filings. Genel declined to comment and DNO didn’t immediately reply to an e-mail.
The KRG didn’t immediately reply when asked for comment.
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The Kurds generated $800 million a month from oil sales after deciding in June 2015 to export oil independently of the central government in Baghdad but revenue dropped to about $350 million in August, due partly to lower crude prices. Drillers came under pressure last year because of erratic payments from local authorities, who diverted resources toward fighting Islamic State after the militants took over large swathes of Iraq in 2014. Regular payments resumed last September.
The return of erratic payments is “the biggest risk” for oil companies operating in the semi-autonomous region, according to Stephane Foucaud, an analyst at FirstEnergy Capital LLP. “Until the oil price recovers, the situation is complicated,” Foucaud said by e-mail. “If international E&Ps do not get paid, they will probably reduce” investments.
Reduced Investment
Gulf Keystone’s Ferrier said he wants to invest in the company’s flagship Shaikan field in order to bring production from the current 33,000 barrels a day level to 55,000. Yet that investment will only be made possible with a regular payment cycle, he said.
Speaking last week at the Pareto Oil & Offshore conference in Oslo, Haakon Sandborg, the chief financial officer of DNO, said that payments had “slowed down a bit over the last months,” yet DNO was “fully confident” these would resume.
Sandborg also said that DNO, which is currently boosting investments in Kurdistan, was making changes to the near-term drilling schedule to account for the delay.
http://www.bloomberg.com//news/articles/2016-09-22/iraqi-kurdistan-s-payments-to-oil-drillers-fall-behind-again
JD400
8 years ago
Publication of Prospectus - 31 August
Record Date for entitlements under the Open Offer - 5:00 p.m. on 30 August
Ex entitlement Date for the Open Offer - 31 August
Results of the Open Offer announced - 16 September
Admission and commencement of dealings in the New Common Shares - expected to commence on or around 14 October
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Instead of all our various Brokers knowing of the Open Offer "a short time after" the announcement and quickly taking action about it, it is clearly obvious that each Brokers reaction time to instigating their own necessary administrative requirements are clearly lacking and slow.
Some Holders expected an email from the Brokers notifying them of the Open Offer while some came on here and ask, when they should have contacted their Broker or gone to their Brokers Website for information
It has also become apparent that Brokers are setting their own timelines "inside" the 31st August and the 15th September with various cut off days coming to light, with some making their own rules up as far as the Excess Allowance is concerned
While it is each Shareholders own responsibility to check for News RNS's and Corporate Actions their money is involved in, many Brokers have been slow on the admin side, haven't been very helpful with some being downright uninterested.
On the 16th Sept we get the Open Offer Results, which hopefully will contain a clear break down of the information :-
a) Amounts of Holders taking up their Entitlement
b) Total Entitlements taken up
c) Excess Shares
d) Amounts of Holders taking Excess Shares
e) Excess Shares left
f) Amounts taken by the Capital Group.
It would be nice to get a break down of the results, but I won't hold my breath
Courtesy Mikey LSE board , Thanks Man!
xxxxxxxxxxxxxxxxxxxxxxx
Abbys questions ,had 18K and wanted 100K more
xxxxx
It has been made easy for everyone
You apply for your Entitlement and any Excess Shares separately
18663 ÷ 9 x 20 = 41,473 (your entitlement) x 0.008314 = £344.80 + 0.5% tax and Brokers fees
You say you want a total of 100,000 more Shares 100,000 - 41,473 = 58,527
On the Excess Application column you place :-
58,527 which x 0.008312 = £486.59 + 0.5% tax and Brokers fees
You have your entitlement Shares + Excess Shares = 100,000 + existing 41,473
JD400
8 years ago
Iraq And KRG Agree To Split Kirkuk Revenues 50/50 And Fight ISIS In Mosul
By Zainab Calcuttawala - Sep 02, 2016, 2:23 PM CDT Mosul
Iraq and the semi-autonomous region of Kurdistan have restarted joint exports of crude from the Kirkuk oil field, after the two parties reached a preliminary revenue-sharing deal earlier this week, industry contacts told Reuters on Thursday.
The agreement came to fruition during recent meetings in Baghdad between high-level officials from Baghdad and Erbil, including Iraqi Prime Minister Haider al-Abadi and KRG Prime Minister Nechirvan Barzani.
One shipping source said that revenues from Kirkuk’s oil trade would be split 50/50 between Iraq’s State Organization for the Marketing of Oil and Kurdistan under the new deal, though the agreement's final details will be sorted out during upcoming discussions between the Iraqi Oil Ministry and the KRG’s Natural Resources Ministry.
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The officials also discussed the nearing operation for the liberation of Mosul and the future of the city and its citizens once the Islamic State has been removed.
“We have an initial agreement with the Kurdistan Region on the participation of all components in the Mosul liberation operation and the future administration of the city when IS is pushed out,” Salim al-Jibouri, the Speaker of the Iraqi Parliament told Kurdistan24.
The two sides agreed to coordinate attacks against the terrorist group in Mosul and will work together to return internally displaced persons to their homes, a joint statement by the Iraqi government and the KRG said.
Barzani presented a firm stance regarding the post-ISIS political future of Kurdistan at the meetings, Erbil spokesman Sami Argoshi said, though Saad al-Hadithi, al-Abadi’s spokesman, later said no official discussions on Kurdish independence took place.
A dispute between Baghdad and Erbil on the terms of a previous revenue-sharing agreement left the Kurdish Regional Government (KRG) the sole manager of Kirkuk’s oil - roughly 150,000 barrels per day - until March of this year.
The KRG shipped oil from the Kirkuk oilfield, as well as several other sites within its borders, to global markets via Turkey, independent of Baghdad’s export contracts.
By April, disagreements surrounding the terms of a new revenue-sharing contract led Iraq to cut off the pipeline flow of Kirkuk crude to the KRG, blocking revenues for the cash-strapped regional government in the throes of the war against ISIS.
Earlier this week, SOMO blacklisted three tankers from using Iraqi ports because they had been working with the Kurds to export oil to markets in Turkey.
On Wednesday, Baghdad said that if the two sides did not agree on a revenue-sharing deal soon, Iraq would consider trucking oil from Kirkuk to Iran instead of using a pipeline that runs through the KRG to bring crude to international markets.
Kirkuk Governor Najmuddin Karim of the Kirkuk province commented yesterday that he would not allow the Iraqi government to truck its fuel to Iran if negotiations broke down, citing environmental and infrastructural concerns.
By Zainab Calcuttawala for Oilprice.com
JD400
8 years ago
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP", or "the Company")
US$250,000,000 13.0 per cent. Guaranteed Notes due 2017 (ISINs: Regulation S XS1056559245, Rule 144A XS1056559088) (the "Guaranteed Notes")
and
US$325,000,000 6.25 per cent. Convertible Bonds due 2017 (ISIN: XS0841237497, Common Code: 084123749) (the "Convertible Bonds")
Launch of Scheme of Arrangement
The Company announces that it has today launched a scheme of arrangement (the "Scheme") in respect of holders of its Guaranteed Notes and Convertible Bonds in connection with the Balance Sheet Restructuring Transaction announced by the Company on 14 July 2016 (the "Restructuring").
A directions hearing was held yesterday at the Chancery Division of the High Court of Justice of England and Wales pursuant to which the Company was granted an order to convene meetings (the "Scheme Meetings") of the holders of the Guaranteed Notes and the Convertible Bonds to consider and, if thought fit, approve the Scheme. As the holders of the Guaranteed Notes and the holders of the Convertible Bonds form separate classes there will be two Scheme Meetings, one for each class. The Scheme Meetings will be held on 22 September 2016 at the offices of Paul Hastings (Europe) LLP, Ten Bishops Square, London E1 6EG at 10.30am (London time) in respect of the Guaranteed Notes and 11.00am (London time) in respect of the Convertible Bonds. Notices of the relevant Scheme Meetings will today be sent to holders of the Guaranteed Notes and Convertible Bonds.
Expected key dates and times in connection with the Scheme are set out below:
Event
Time and Date
Notes
Explanatory Statement made available to Scheme Creditors
2 September 2016
The date on which the explanatory statement in connection with the Scheme (the "Explanatory Statement") is made available to the Scheme Creditors
Voting Record Date
20 September 2016
Scheme Claims of Scheme Creditors for the purposes of voting at the Scheme Meetings will be determined as at the Voting Record Date
Instruction Deadline
2.00pm (London time) on 20 September 2016
The deadline by which Scheme Creditors must submit Instructions for the purposes of, inter alia, voting at the Scheme Meetings
Instructions about actions to be taken by Scheme Creditors preceding the Scheme Meetings are set out in the Explanatory Statement, which will be made available to Scheme Creditors on the Scheme Website: https://sites.dfkingltd.com/gkp.
Capitalised terms used and not defined herein shall have the meanings set out in the Explanatory Statement.
D.F. King Limited acts as information agent in connection with the Scheme. Holders of Guaranteed Notes and/or Convertible Bonds with questions regarding the Scheme or the Scheme Meetings should contact:
Information Agent
D.F. King Limited
+44 (0) 20 7920 9700
gkp@dfkingltd.com
https://sites.dfkingltd.com/gkp
For further information about the Restructuring, visit the Company's Restructuring microsite: http://www.gulfkeystone.com/restructuring
Enquiries:
Gulf Keystone Petroleum:
+44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
Anastasia Vvedenskaya, Head of
Investor Relations
+44 (0) 20 7514 1411
Celicourt Communications:
+44(0) 20 7520 9266
Mark Antelme
Jimmy Lea
Disclaimer
This communication and the information contained herein is not an offer of securities for sale in the United States or Australia, Canada, Japan, New Zealand, Switzerland, South Africa or any other jurisdiction where to do so could constitute a violation of the relevant laws of such jurisdiction ("Excluded Territories") or any other jurisdiction where to do so could constitute a violation of the relevant laws of such jurisdiction. Securities may not be offered or sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or are exempt from registration thereunder. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the company and its management, as well as financial statements. The Company has not registered and does not intend to register any of its securities under the Securities Act or to conduct a public offering in the United States or any other jurisdiction. Copies of this communication are not being, and should not be, distributed in or sent into the United States.
This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended from time to time (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order or (iv) certified high net worth individuals and certified and self-certified sophisticated investors as described in Articles 48, 50, and 50A respectively of the Order or (v) persons to whom this communication may otherwise be lawfully communicated (all such persons together being referred to as relevant persons). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This communication is distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (this Directive together with any implementing measures in any member state, the Prospectus Directive) only to those persons who are qualified investors for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person or qualified investor may act or rely on this document or any of its contents.
This information is provided by RNS
The company news service from the London Stock Exchange
http://www.gulfkeystone.com/
JD400
8 years ago
Competent Person's Report Update
2P Reserves stable and reservoir performance as expected for the Shaikan field, a world class asset
In connection with the publication of a Prospectus as part of the Balance Sheet Restructuring Transaction ("Restructuring"), Gulf Keystone today announces the release of an updated Competent Person's Report ("CPR"). The CPR is an independent third-party audit of the Company's Reserves, as at 30 June 2016. The CPR was again prepared by ERC Equipoise ("ERCE") and revises and updates the previous report dated September 2015.
Highlights
· With 12.4 million barrels produced in the period since the previous CPR, gross Shaikan 2P Reserves are effectively unchanged at 622 million barrels of oil
· GKP's net working interest Shaikan 2P Reserves have increased from 348 million barrels of oil to 360 million barrels, now reported on a 58% working interest basis subject to execution and consummation of the Second Amendment to the Shaikan Production Sharing Contract ("Second Shaikan Amendment"), as envisaged by the Bilateral Agreement between the Company and the MNR announced on 17 March 2016
· Inclusive of 2C Contingent Resources and Technically Recoverable Volumes, Shaikan has over 1 billion barrels of oil remaining
· With over 25 million barrels produced to date, the Company now has an increasingly confident understanding of the reservoir
· No unexpected changes in reservoir behaviour have been observed, demonstrating the stable and predictable performance of the field
· Contingent Resources totals now exclude volumes previously reported for the relinquished Sheikh Adi and Ber Bahr blocks
CPR Methodology
ERCE has audited the reserves assessment in compliance with PRMS/SPE reporting guidelines.
The table below represents the updated CPR's conclusions on Shaikan Reserves, Contingent Resources and Technically Recoverable Volumes(1) in comparison with the September 2015 CPR:
MMstb(2)
2P
2C
2P+2C
TRV(1)
2P+2C+ TRV(1)
Net diluted WI
to GKP - 2P
Sept 2015
639
239
878
142
1,020
348(3)
Aug 2016
622
239
861
150
1,011
360(4)
Notes
(1) Technically Recoverable Volumes ("TRV") are recognised in the production profile beyond the term of the Shaikan Production Sharing Contract
(2) MMstb: Million stock tank barrels
(3) Based on 54.4% Working Interest
(4) Based on a 58.0% Working Interest subject to the execution and consummation of the Second Shaikan Amendment, as envisaged by the Bilateral Agreement between the Company and the MNR announced on 17 March 2016
Sources: September 2015 ERC Equipoise CPR; August 2016 ERC Equipoise CPR
Commenting on the publication of the updated CPR, Jón Ferrier, CEO, said:
"With cumulative production now totalling more than 25 million barrels, we have continued to build on our understanding of the field's characteristics. This updated CPR, prepared as part of the Company's Restructuring, is highly positive as it reiterates our assumptions of last year about the quality of the Shaikan field, and reinforces its prominent position in the region. We thank the Kurdistan Regional Government's Ministry of Natural Resources for their ongoing support.
Our near term objective of restructuring the Company's balance sheet continues to be our primary focus, following which we will be armed with the leadership, knowledge, technical capability and funding to work with our partners to realise the field's full potential."
The latest CPR can be viewed on the Company's website: http://www.gulfkeystone.com/investor-centre/presentations-and-technical-reports
http://www.gulfkeystone.com/
JD400
8 years ago
Iraq Pledges to Support an OPEC Freeze Deal, Shifting Its Stance
August 30, 2016 — 9:17 AM MST
Al-Abadi backs oil-output cap at Algiers gathering next month
Premier previously stressed Iraq’s need to boost production
Iraq would support a proposal for OPEC and other major oil producers to freeze output at talks in Algeria next month, Prime Minister Haidar Al-Abadi said in Baghdad.
The endorsement marks a slight shift by Al-Abadi, who was quoted by Reuters on Aug. 23 saying that Iraq still hadn’t raised production sufficiently. The country’s deputy oil minister, Fayyad Al-Nima, said the following day that Iraq would support measures to establish fair crude prices.
The Organization of Petroleum Exporting Countries will hold informal talks during an industry conference in Algiers in September, fanning speculation the group could revive an initiative with non-members such as Russia to limit output. A previous attempt collapsed in April amid political tensions between Saudi Arabia and Iran.
“Our opinion is to freeze output to support prices,” Al-Abadi said. “The drop in oil prices is causing volatility and this is harming Iraq because our revenues are based on oil.”
Iraq is the second-biggest member of OPEC, whose other major producers have signaled only qualified backing for an output accord.
Saudi, Iran
Saudi Arabian Energy Minister Khalid Al-Falih said Aug. 26 that while a freeze would be “positive” for market sentiment, no “intervention of significance” is required as global markets are rebalancing by themselves.
Iranian Oil Minister Bijan Namdar Zanganeh said that the country expects to recover its market share -- eroded during years of international sanctions -- as a condition of co-operating with OPEC, according to an Aug. 26 report by news service Shana.
OPEC gave Iraq an exemption from the individual quotas imposed on members from 1998 as the country contended with years of sanctions and war. While Iraq has boosted output in recent years after signing deals with international companies, its production was still below capacity in July, according to the International Energy Agency.
Iraq has shown more willingness to co-operate with OPEC as the plunge in oil prices -- down 50 percent since 2014 -- and the fight against Islamic State battered its finances. The country has secured a $5.3 billion loan from the International Monetary Fund to stabilize its reeling economy.
The nation’s current expansion plans may be difficult to reconcile with a production freeze. Iraq told international oil companies to boost output after reversing previous instructions to cut investment, Iraq Oil Report said Aug. 23.
http://www.bloomberg.com//news/articles/2016-08-30/iraq-pledges-to-support-an-opec-freeze-deal-shifting-its-stance
JD400
8 years ago
Iraq Will Boost Oil Exports After Agreement on Kirkuk Fields
Khalid Al Ansary
Khalidansary
Sam Wilkin
@MrSamWilkin
August 21, 2016 — 5:01 AM MST
Exports will increase 150,000 barrels a day in next few days
New oil minister said last week he saw resolution with Kurds
Iraq, OPEC’s second-biggest producer, will increase crude exports by about 5 percent in the next few days after an agreement to resume shipments from three oil fields in Kirkuk.
Shipments will increase by about 150,000 barrels a day as exports resume from the Baba Gorgor, Jambour and Khabbaz fields, Fouad Hussein, a member of the oil and energy committee of the Kirkuk provincial council, said by phone Sunday. The three oil fields are operated by the state-run Northern Oil Co. but their export pipeline is controlled by the semi-autonomous Kurdistan Regional Government.
The NOC halted exports from those fields in March due to a payment dispute with the KRG. Iraq’s new oil minister Jabbar al-Luaibi, on his first day in the job, said last week he saw ways to resolve the dispute with the self-governed Kurds, and Prime Minister Haidar Al-Abadi ordered the oil ministry to resume oil pumping into the pipeline.
Iraq has struggled to boost oil exports this year, with shipments from the northern part of the country hampered by the dispute with the KRG. Iraq’s exports were 3.71 million barrels a day in July, according to the International Energy Agency, including oil sold by the KRG. Calls to the KRG for comment weren’t answered and text messages weren’t immediately returned.
Pumping Operations
“Pumping operations started with test pumping at 70,000 barrels a day last Thursday and the Northern Oil Co. aims to boost it to its normal rate at 150,000 barrels a day this week,” Hussein said. “This is a good step and significant initiative to strengthen relations between KRG and the federal government.”
The Kurds generated $800 million a month from oil sales after deciding in June 2015 to export oil independently of the central government but revenue dropped later to about $400 million a month, due partly to lower crude prices. Benchmark Brent crude dropped 35 percent last year.
The Kirkuk-Ceyhan pipeline was exporting about 600,000 barrels a day of crude before the payment dispute, including 150,000 barrels from the NOC’s fields. It carried 457,000 barrels a day in July from KRG-operated fields, according to information on the KRG website. Exports in February and March were lower due to damage to a section of the pipeline in Turkey.
Kurds Control
Control of Kirkuk’s oil is split between the central government and the KRG. The Kurds control two oil fields in the province, Bai Hassan and Avana, which export about 150,000 barrels a day.
Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, holds the world’s fifth-largest oil reserves. The drop in crude prices over the past two years has squeezed state revenue at the same time when the government waged a costly campaign against Islamic State militants, who have seized parts of northern Iraq. The country was producing 4.78 million barrels a day in July compared with 4.44 million at the end of last year, according to data compiled by Bloomberg and Iraq’s oil ministry.
http://www.bloomberg.com/news/articles/2016-08-21/iraq-will-boost-oil-exports-this-week-after-agreement-on-kirkuk
JD400
8 years ago
Result of the Special General Meeting
The Board of Gulf Keystone Petroleum ("the Board") announces that the resolution proposed at the Company's Special General Meeting ("SGM") held today at 3pm (local time) in Geneva, was duly passed by shareholders.
The result of the SGM is as follows:
Resolution
Votes for
%
Votes against
%
Total Votes cast
Votes withheld
1. THAT the authorised share capital of the Company be increased by US$219,105,237 from
US$73,000,000 by the creation of 21,910,523,665 new Common Shares, ranking pari passu in all
respects as one class of shares with the existing Common Shares.
251,352,991
94.85
13,639,906
5.15
264,992,897
92,792
The total number of shares in issue at 5 August 2016 was 1,032,433,052.
The full text of the resolution may be found in the Notice of the Special General Meeting, which is available on the Company's website http://www.gulfkeystone.com/.
Enquiries:
Gulf Keystone Petroleum:
+44 (0) 20 7514 1400
Anastasia Vvedenskaya, Head of Investor Relations
+44 (0) 20 7514 1411
Celicourt Communications:
+44 (0)20 7520 9266
Mark Antelme
Jimmy Lea
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan field with current production capacity of 40,000 barrels of oil per day.
Disclaimer
This announcement contains certain forward-looking statements. These statements are made by the Company's Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent uncertainties, including both economic and business factors, underlying such forward-looking information. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.
This communication and the information contained herein is not an offer of securities for sale in the United States or the Excluded Territories or any other jurisdiction where to do so could constitute a violation of the relevant laws of such jurisdiction. Securities may not be offered or sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended, or are exempt from registration thereunder. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the Company and its management, as well as financial statements. The Company does not intend to register any of its securities in the United States or to conduct a public offering in the United States or any other jurisdiction. Copies of this communication are not being, and should not be, distributed in or sent into the United States.
This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended from time to time (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order or (iv) certified high net worth individuals and certified and self-certified sophisticated investors as described in Articles 48, 50, and 50A respectively of the Order or (v) persons to whom this communication may otherwise be lawfully communicated (all such persons together being referred to as relevant persons). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This communication is distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (this Directive together with any implementing measures in any member state, the Prospectus Directive) only to those persons who are qualified investors for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person or qualified investor may act or rely on this document or any of its contents.
This information is provided by RNS
The company news service from the London Stock Exchange
http://www.gulfkeystone.com/
JD400
8 years ago
Deja-Vu(lnerable): Oil Spikes 6% On Contango-Crush As "Violent Reversal" Higher Looms
by Tyler Durden
Aug 4, 2016 12:27 PM
3
WTI Crude is up over 6% in 24 hours, since yesterday's surprise build (and production cut) as the machines squeeze out an over-exuberant short positioning once again. However, just as we saw last year around this time, Astenbach's infamous oil veteran Andy Hall is warning a "violent reversal higher" looms again amid extreme positioning and potentially improving fundamentals. Exaggerating the move further is the surge in the contango which has once again made sea-storage profitable, sending yield-seeking traders into the carry trade (and squeezing shorts further).
As Bloomberg reports, despite what Hall called a “miserable month" for oil in July, supplies are still shrinking, he said in his letter, setting up prices to reverse themselves.
“Prices are now back at levels that would ensure the eventual bankruptcy of most of the oil industry," hammering both private oil companies and producing countries like Iraq, Nigeria and Venezuela, Hall said. “Prices at current levels are just not sustainable."
“The market is being driven by its own momentum and currently that is down," Hall wrote to investors in his Stamford, Connecticut, hedge fund, Astenbeck Capital Management LLC.
“But extreme positioning coupled with improving fundamentals should ultimately – and at potentially any time – result in a strong reversal."
And we note a major case of deja vu all over again...
Last August/September oil prices exploded 25% in just a few days as options markets were manipulated (chatter at the time was Hall faced big losses and used call vol to squeeze a heavily short positioned market) to create the most violent reversal ever in crude...
However, even more worying for front-end shorts is return of the carry trade...
Six-month Brent contango structure now covers cost of dirty VLCC time charter for same period, making it economical to store crudes that are priced off benchmark, according to Bloomberg survey of 6 traders and analysts.
VLCC time-charter rate for 6 months at $25k-$28k/day, say 2 shipbrokers, 1 charterer; that’s equivalent to $2.25- $2.52/bbl for the half-year period
Brent’s 6-month contango has averaged $2.83/bbl this month, higher than the freight cost
Contango has widened almost 4 times from its narrowest level for this year on April 29
In other words, the moment the contango got big enough to be profitable, everyone started loading oil back again on to tankers... hoping to earn a modest yield on the carry trade. But this kind of demand is temporary (as the chart above shows).
http://www.zerohedge.com/news/2016-08-04/deja-vulnerable-oil-spikes-6-contango-crush-violent-reversal-higher-looms?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
JD400
8 years ago
GUKYF Restructuring Agreement Update
US$250,000,000 13.0 per cent. Guaranteed Notes due 2017 (ISINs: Regulation S XS1056559245, Rule 144A XS1056559088) (the "Guaranteed Notes") and US$325,000,000 6.25 per cent. Convertible Bonds due 2017 (ISIN: XS0841237497, Common Code: 084123749) (the "Convertible Bonds")
Restructuring Agreement Update
Further to its RNS of 14 July 2016 regarding the Balance Sheet Restructuring Transaction (the "Restructuring RNS"), the Company announces today that signatories to the Restructuring Agreement now represent approximately 82% of the aggregate principal amount of the Guaranteed Notes and approximately 82% of the aggregate principal amount of the Convertible Bonds.
Under the terms of the Restructuring Agreement, the signatories have agreed, inter alia, to (i) forbear from taking any action to enforce the terms of the Guaranteed Notes and/or the Convertible Bonds, as applicable, (ii) support and take reasonable and necessary actions (that are consistent with the Restructuring Agreement and the Restructuring) as they may have under or in respect of the Guaranteed Notes and/or the Convertible Bonds, as applicable, in furtherance of implementation and consummation of the Restructuring and (iii) vote in favour of the Scheme at the relevant Creditor Meeting(s).
The deadline for Convertible Bondholders to accede to the Restructuring Agreement in order to be eligible to participate in an alternative restructuring was close of business on 1 August 2016.
Capitalised terms in this announcement shall have the meaning set out in the Restructuring RNS available at http://www.gulfkeystone.com/restructuring.
Enquiries:
Gulf Keystone Petroleum:
+44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
Anastasia Vvedenskaya, Head of Investor Relations
+44 (0) 20 7514 1411
Celicourt Communications:
+44 (0)20 7520 9266
Mark Antelme
Jimmy Lea
DF King Limited acts as Information Agent for Guaranteed Noteholders and Convertible Bondholders. Guaranteed Noteholders and Convertible Bondholders with questions regarding obtaining or completing the Restructuring Agreement should contact:
Information Agent:
D.F. King Limited
+44 (0)20 7920 9700
gkp@dfkingltd.com
https://sites.dfkingltd.com/gkp
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq and the operator of the Shaikan field with current production capacity of 40,000 barrels of oil per day.
Disclaimer
This announcement contains certain forward-looking statements. These statements are made by the Company's Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent uncertainties, including both economic and business factors, underlying such forward-looking information. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.
This communication and the information contained herein is not an offer of securities for sale in the United States or the Excluded Territories or any other jurisdiction where to do so could constitute a violation of the relevant laws of such jurisdiction. Securities may not be offered or sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended, or are exempt from registration thereunder. Any public offering of securities to be made in the United States would be made by means of a prospectus that would contain detailed information about the Company and its management, as well as financial statements. The Company does not intend to register any of its securities in the United States or to conduct a public offering in the United States or any other jurisdiction. Copies of this communication are not being, and should not be, distributed in or sent into the United States.
This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended from time to time (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order or (iv) certified high net worth individuals and certified and self-certified sophisticated investors as described in Articles 48, 50, and 50A respectively of the Order or (v) persons to whom this communication may otherwise be lawfully communicated (all such persons together being referred to as relevant persons). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This communication is distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (this Directive together with any implementing measures in any member state, the Prospectus Directive) only to those persons who are qualified investors for the purposes of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person or qualified investor may act or rely on this document or any of its contents.
This information is provided by RNS
The company news service from the London Stock Exchange
END
http://www.gulfkeystone.com/
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