The shares of Gulf Keystone Petroleum which closed at 179.75p on 7th
update the shares are trading at 177.50p which is down by 1.25% as the market proceeds for an end
on 8th January 2014. This 1.67 billion pound AIM-traded company has enthralled investors ever since
announcing a “world-class” discovery in its Shaikan block in 2009.
The last year 2013 has been an exciting year for Gulf Keystone. The company and its partners have
discovered oil in five locations within four of the firm’s exploration blocks. The most recent discovery
was at the Ber Bahr 1 well, which GKP holds a 40% interest in and operates with its partners Genel
Energy and the Kurdistan regional government.
Elsewhere, the company is in the process of driving up production from its 75% holding in the Shaikan oil
field, one of the largest oil and gas developments in the world with a projected 13.7 billion barrels of oil
in place. Gulf Keystone is targeting production of 40,000 barrels of oil per day by the end of this year and
150,000 by 2015.
In addition, the company has several other oil wells under development within Kurdistan, some of which
are expected to yield several billion barrels of oil for the company.
Gulf Keystone also says Excalibur Ventures does not plan to launch an appeal against a Commercial
Court judgment made in September. Excalibur has agreed to an interim payment on account of the
defendants’ costs in the full sum of £17,500,000.
Gulf Keystone made a loss during 2012. However, if the company manages to achieve its production
targets this year, City analysts expect the company to turn a pre-tax profit of £41 million and earnings
per share of 0.51 pence. Additionally, if production targets are met next year, analysts predict earnings
of 13.7 pence per share for 2014.
All these factors clearly indicates that Gulf keystone is following its basics and is moving on a good track
which makes it a obvious choice to buy for 2014.