I wouldn’t normally post shoddy broker notes – but the one from Investec needs some airing if only to expose them for their woeful research and attention to detail.
Firstly – Whilst I would be delighted with 24mln barrels per day, I think they actually mean 24kbopd (which is clear from GKP’s RNS) and regardless of the odd decimal point problem – it doesn’t make up for this comment…”will provide the government with an assurance that Gulf Keystone is proving up the resource base…”
Are they not aware of the OIP upgrades over the last year? GKP have moved the p90 number from 1.9bln to 8.9bln. I don’t think the KRG will be doubting GKP’s ability to proving up the resource base!
Where do these brokers get their staff from these days? I imagine their clients are checking all their recent buy notes for decimal point errors as I type! Could be costly in the future!
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Investec Lifts Gulf Keystone Target Price
0756 GMT [Dow Jones] Investec Securities raises its NPV-based target price on Gulf Keystone Petroleum (GKP.LN) to 232p from 191p following positive well test results on Shaikan 4, the company’s deep appraisal well in the Kurdistan region of Iraq. The testing program achieved total maximum aggregate flow rates of 24 million barrels of oil a day. The company is set to move forward with a full development program, and this announcement will provide the government with an assurance that Gulf Keystone is proving up the resource base to achieve this objective, says Investec. Shares +4.3% at 22