(LON:GKP) Gulf Keystone Petroleum Ltd. is a major oil and natural gas exploration and production company whose primary assets are located in the Kurdistan region of Iraq. It’s listed on the Alternative Investment Market with a market cap of about £1,644.86 million. GKP shares opened at GBX 181 today on the London Stock Exchange.
Gulf Keystone Petroleum: Investor News and Updates
Following the resolution of the Gulf Keystone Petroleum-Excalibur court case in December last year, GKP was awarded a sum total of £17.5m in an escrow account as an interim payment in addition to resolving all disputes about ownership of the Shaikan field. Moreover, there’s also been a lot of positive updates on Gulf Keystone Petroleum’s crude exports to Turkey through its recently completed pipeline as per the company’s press release on 9th January. Obviously, both investors analysts have reason to be optimistic.
However, Gulf Keystone Petroleum’s shares have been unable to break the 190p level for almost two months. This is why a lot of analysts have tempered their optimism with some degree of skepticism. Consequently, many of them have downgraded their Gulf Keystone Petroleum price target to a sub 200 figure. For example, Canaccord Genuity has reduced its GKP price target of GBX 200 to GBX 195 in a note that it released to its investors a week ago.
Nonetheless, investors should note that the stock has been receiving a fair bit of attention in 2014 which has consequently increased its buying pressure. Additionally, the Gulf Keystone stock price has been varying from 180p to 190p for the most part in 2014 with only very marginal drops below those levels. This has led to widespread speculation that Gulf Keystone might be heading for a higher break.
Gulf Keystone Petroleum Price Target
Despite the positive news, the building momentum has not been strong enough to break the 190p level. However, on a medium-term horizon, Gulf Keystone Petroleum seems like a good investment if its key support of 175 is not breached. On the other hand, if the resistance at 185 is broken, then the Gulf Keystone share price could rise to over GBX 240 like last year.