The recent surge in punters favourite GKP could very well be in response to gathering expectation of yet MORE oil discoveries. As of yet unconfirmed reports are circulating here in the city that more oil is likely to be hit. Market chatter is very favourable at the moment as we await an update on the GKP rags to riches story.
Market chatter of possible fund-raising at a previously unthought of level is certainly being seen here as a plus and in no way a brake on the sp. Expected oil revenues from test production sales will further increase the sp as this will have a material effect on the GKP business model moving closer to production on Shaikan. Targets and analysis are now known to be “ongoing” with a view to the massive potential in an sp spike if more oil discoveries are confirmed.
A reading of the current hikes in sp coupled with knowledge of what the market is now edging toward would suggest to me that 200p is a FOREGONE conclusion.
- MOL says tests succeed in Iraq’s Shaikan Block (reuters.com)
- UPDATE 1-Gulf Keystone confirms well flow rate, shares rise (reuters.com)