Firstly – let’s get something clear. I’m a GKP Bull, love the assets but hate the corporate governance and management of news. A difficult relationship to balance as both are entwined closely together. It’s just a crying shame that with such great assets comes such PPP (p..s poor, performance) on shareholder communications.
I could name many examples – but let’s use a fresh one (current). Let’s take the SH-6 well.
From Mirabaud’s recent broker note…11th July
‘We expect an additional upgrade to the resource numbers on the back of the Shaikan 5 and 6 well results which have extended the field further eastwards and established a deeper than expected Jurassic oil water contact (OWC).” END.
Now – luckily for pi’s a poster on iii’s bb called Joseki’s reported from an analyst meeting (which was weeks ago now) that the OWC on Shaikan 6 was found and 150m lower than they thought.
Had Joseki’s note not materialised – pi’s would not have known. They would still be in the dark.
Prior to this news there was a plethora of brokers citing the importance of SH-6 as being a major event in the exploration of Shaikan – something that shareholders were keenly waiting upon – the missing OWC. Big event indeed.
Mirabaud goes on to say in reference to SH-6 deeper OWC…
“This could be quite significant, potentially in the order of several billion barrels of OIP”. END.
So this confirms the importance of SH-6. Pi’s have know this importance and have waited over 8 months for the news of the OWC. Yet GKP fails to issue an RNS? Instead – they kept this information from pi’s yet spilled the beans to ii’s.
That’s wholly wrong. It raises the question of what else GKP has disclosed to ii’s that hasn’t been told to the pi’s.
It’s a matter for the FSA and I would expect shareholders to email GKP IR’s dept and ask the question.
‘Why hasn’t there been an RNS on the key information regarding SH-6 OWC point being 150m below expected levels? Should get an interesting answer.
It’s not bearish or negative on GKP to be seen to be complaining about such things as many seem to interpret. Quite the opposite. It’s more bullish and caring than alternatively, not saying anything.
Caring because pi’s/shareholders have supported GKP since the 9p per share days. This abuse of information cannot be allowed to go unanswered. All stakeholders/shareholders should be told crucial/material news at the same time – not some getting the news weeks in advance of others.
If Mirabaud say that the OWC news could add billions of barrels to the OIP – then it’s material. They are the house broker after all.
So who’s advising GKP on what should be RNS and what should be filtered through to pi’s as 3rd party news (eg, via broker notes). Whoever they are – they need to be forced to review their choices.
So I suggest all shareholders who are concerned by this ‘management of news’ email GKP IR and even the FSA and ask why we are currently getting news later than other parties.
Totally agree with most of what you have confirmed regarding selective release of news to those Private Investors who have been here for considerably longer than many of the recent Institutional holders who have had significantly preferential opportunities to acquire shares that we were denied. For what it’s worth I personally believe that there is more of this to come – mates rates placings are hallmarks of GKP’s crap corporate governance.
SH5 news and OWC data should have been released through the normal channels and withholding this information which is clearly material is simply not acceptable and the company should be held to account.
Hub,
Sorry but how has everybody missed this from the Kurdistan operations update from 30/04/2012, right at the VERY bottom of the PAGE clearly states about reaching OWC and going a further 150 metres below previous OWC… NOTE:
“John Gerstenlauer, Gulf Keystone’s Chief Operating Officer commented:
“Our operations are progressing across the four blocks in the Kurdistan Region of Iraq. In addition to the outstanding 24,000 bopd results achieved with the Shaikan-4 appraisal well, Shaikan-6 has cored oil 150 metres below what we previously assumed to be Jurassic oil/water contact level for Shaikan. Both Shaikan-5 and Shaikan-6 continue to appraise this massive structure down the flanks and we plan to test and evaluate its deeper oil potential. Stable output from the Shaikan extended well test has now surpassed our initial target of 5,000 bopd and is set to increase with work underway to upgrade the existing EWT facility and design and construct a new facility for Shaikan-2. A long-anticipated second exploration well on the Sheikh Adi block will spud in June, when results of the Ber Bahr-1 testing programme are also expected.”
Mike,
No body missed this comment – we knew they were going deeper in hunt of the all important OWC but that quote from JG simple says that they have ‘cored oil 150m below what we aasumed to be the jurassic OWC… etc etc. It doesn’t say that they have found the OWC. Finding the OWC is significant as it allows for greater certainty when doing the valuation/oip estimates.
The point is – there was no further update post this April ops rns. The next thing we hear is that GKP have told some ii’s at an analyst meeting that they’ve found the OWC.
They should have done this via an RNS. For all pi’s know – they could have found the OWC 300m below expected OEC level etc etc.
HUB