Do you have sufficient funding for the announced 2011/2012 work programme in the Kurdistan Region of Iraq?
As at 5 April 2011, the Company had a solid balance sheet with US$171.9 million to fund the ongoing 2011/2012 work programme comprising of five appraisal wells on the Shaikan block (two of them are contingent) and three exploration wells on Sheikh Adi, Ber Bahr and Akri-Bijeel blocks, as well as processing and interpretation of a significant amount of 3D seismic data acquired for the Shaikan and Sheikh Adi blocks. Test production from Shaikan 1 & 3, which commenced in October 2010 has generated additional revenues as a result of domestic oil sales.
The Company anticipates to have additional funds available as a result of oil exports at the initial stabilized rate of up to 5,000 barrels of oil per day (“bopd”), increasing to over 10,000 bopd by the end of 2011. Moreover, should the Kurdistan Regional Government exercise its Option of Third Party Participation in the Shaikan and Akri-Bijeel Production Sharing Contracts (“PSC”), Gulf Keystone’s past costs in relation to the Third Party Interest in the Shaikan and Akri-Bijeel PSCs will be reimbursed to the Company by the Third Party Participant nominated by the KRG.
How do you explain Gulf Keystone’s share price fluctuations?
As a general rule, it is Gulf Keystone’s policy not to comment on changes in the share price. Changes in the share price reflect trading decisions by individuals and/ or institutions of which the Company is not aware. Therefore, it would be speculation by the Company to comment on the reason for a change(s) in the share price. We would note, however, that the Company always updates the market regarding price sensitive information in line with the AIM Rules for Companies.
How you decide when to announce drilling or other news?
As an AIM-listed company, Gulf Keystone adheres to the AIM Rules for Companies, including Rule 11 setting out the Company’s responsibility to maintain an orderly market in the trading of the Company’s shares by providing timely updates to the market on new developments to the Company’s operations and activities. We have a well established practice of issuing regulatory announcements on the Company’s operations or/and any new price sensitive information in line with the AIM regulations.
When is Gulf Keystone planning to move from the AIM to the main listing of the London Stock Exchange?
The Company is currently studying the feasibility of progressing to the main market of the London Stock Exchange. There are still a number of issues under consideration and evaluation.
Have you been approached for a potential take-over?
No. Should there be any offer for the Company the Board will make specific recommendations to the shareholders that will consider the best interests of shareholders as to how they should respond to any offer.
