Yesterday’s news of an opportunistic legal claim completely overshadowed the news of GKP stating they intended to talk to the regulatory authorities about a listing on the FTSE 250 (stated in an interview with FT.com).
The listing would complete the full transformation from undiscovered AIM listed minnow to one of the largest oil companies in Kurdistan.
It just goes to show what can happen in just 18 months with small exploration companies. When the dust settles on the recent legal dispute, I expect investors to start to focus on the merits/benefits of a FTSE250 listing. It really is a milestone that should not be overlooked. Long way to go yet but they seem hopeful of a Q1 admission. That might be pushing it a bit, but a lot depends on how far down the road they are with the regulation talks.
and more on the legal case…
When I asked for posters to send in their candidates for the hotlist 2011 I didn’t expect to see so many of the stocks mentioned doing cartwheels on a mid week xmas trading day.
I doubt the final Hotlist (published here on Jan 2nd) will see such decent daily gains.
Here are a few stocks mentioned by posters that have done well today… none of them are my tips but from other comments made on the hotlist 2011 thread/category section.
BZT up 39% today,
AMC up 37% today,
XTR up 28% today,
INFA up 24% today,
HER up 16% and BHR up 10%
These stocks are very high risk as most are minnows – but the performance today seems to suggest that posters may be right and 2011 could be a good year for them.
Let’s hope they don’t exhaust themselves before Jan 4th starts.
Well done to all those posters that sent in the above – time will tell if they have the legs and success to make 2011 their year.
Keep an eye on FDI (firestone). Holdings RNS just out. Audley Cap. have added and now hold 5.7%. Production next year looks good if they can hit the numbers and a few holdings RNS’s suggest that II’s might be getting stuck in.
Tipped here at 11p just a few days ago and PMG is testing 37p+ today.
Truly astonishing. The rise appears to be attributed to Mr Cross’s bullish statement for 2011 and whilst Cross (ex dana man) has a proven record – at 33p, PMG is looking very heavy on pricing in high expectations.
A 3 bagger in under 2 weeks is not to be sniffed at and locking in profits is sensible.Sold a few today at 28p and 32p as this has exceeded my expectations. To the lucky ones that were holding pre Cross’s involvement at 2p ranges – today is an 18 bagger day! Well Done.
GKP’s intention to move to a FTSE 250 listing was announced in the FT today.
When you are moving into a high profile position from AIM to Ftse 250… you can’t have any skeletons in the cupboard.
I find the ‘timing’ of such news as curious. Surely such issues could have been filed earlier. Why do it now? Iraq government was officially formed last week.
Today’s news is certainly not good at all but will go some way to ensuring GKP avoid takeovers until it is resolved. If the Oil contracts get approved soon, then most expected low ball offers from koreans or chinese to be coming fast. GKP management seem confident that the claim is without merit. GKP need at least another 7 months to appraise Shaikan and bolster their valuation. It’s a race against time and the legal dispute is an unwanted distraction especially as investors had seen many uncertainties disappear in 2010. Interesting times ahead.
From today’s RNS
Rejection of Legal Claims
The Board of Gulf Keystone announces that Gulf Keystone and two of its subsidiaries (referred to for the purposes of this announcement only, as “the Companies”) received notice on 23 December 2010 that an arbitration (“the NYC Arbitration”) was commenced by Excalibur Ventures LLC (“Excalibur”) in New York on 17 December 2010 asserting certain contractual and non-contractual claims against the Companies and claiming that Excalibur is entitled to an interest of up to 30% in the Companies’ blocks in Kurdistan.
On 21 December, 2010, Excalibur applied without notice to the Companies to the Commercial Court in London for a “worldwide freezing injunction” against the Companies’ assets, which was refused by the Commercial Court on the basis that the Judge did not consider there was a risk of dissipation of assets. Excalibur also commenced proceedings in the Commercial Court in London on 17 December 2010 on the same grounds as in the NYC Arbitration (“the Commercial Court Claim”) in order allegedly to protect its position in relation to potential limitation of actions under New York and/or English law. The Companies received notice on 23 December 2010 of the claims, since which time they have been in consultation with their legal advisers.
Ithaca has a habit of exceeding management expectations. Just one little peruse of their past rns’s tells you that.
I like their management style. They don’t over promise and they go about their work with the purpose and reliability that you’d expect from a Swiss watch manufacturer.
The second workover (the first was also a resounding success) adds a further 560bopd to the 2011 production. With recent acquisitions completed, they could be doing close to 6k/7kbopd ‘average’ next year. With North Sea Brent going for around $93 at the moment, they are set for a great cash flow position. The story gets better in 2012 and 2013 with full funding currently all sorted to see them through to circa 22k bopd.
OR: ITHACA ENERGY INC.
TSX VENTURE, AIM SYMBOL: IAE
December 29, 2010
Ithaca Energy Inc.: Beatrice Alpha Second Well Workover Completes
LONDON, UNITED KINGDOM and CALGARY, ALBERTA–(Marketwire – Dec. 29, 2010) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited (“Ithaca” or “the Company”), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, is pleased to announce that stable production from the second workover well (A23) on Beatrice Alpha has increased by approx. 115% to approximately 560 barrels of oil per day (“bopd”) gross (280 bopd net to Ithaca), exceeding management expectations.
Activities will commence in early January 2011 on the third workover well of the campaign (Beatrice Alpha well A28).