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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Post by EOIMon Mar 18, 2011 12:53pm
258 Views
Post# 18305994

Excitement Coming back to KRG

Excitement Coming back to KRGFrom the GUARDIAN (sorry if already posted)...

https://www.guardian.co.uk/business/marketforceslive/2011/mar/18/gulf-keystone-up-on-iraq-hopes

Gulf Keystone shares gush up 22% on Kurdistan oil hopes

Making a substantial oil discovery when the crude price is soaring is pretty much an ideal situation. Step forward Gulf Keystone Petroleum, which is exploring in the Kurdistan region of Iraq.

The company has revealed it found a significant flow of oil at the Shaikan-2 well, where it has a 75% working interest. It said:
Substantial smoke and/or the oil flare is/are visible from the company's office in Erbil some considerable distance from the Shaikan-2 location, indicating that a significant flow has been encountered and prompting hte company to issue this announcement.

It is conducting tests, which are expected to last for 72 hours, to determine flow rate and oil quality. But Gulf Keystone boss Todd Kozel said the oil flow confirmed its belief in the "world class nature" of the Shaikan discovery.

Investors are convinced too. Shares in Gulf Keystone - which some tip as a possible takeover target - have surged 22%, up 26.75p to 150.25p.

Analysts at Fox-Davies Capital said:
This is excellent news for Gulf Keystone although we have to wait for more data in order to be in a position to make a more definitive assessment. We are increasing our probability of success for the P50 case on Shaikan from 2/3 to 3/4 and raising our price target to 220p. We remain strong buyers of the stock, WHICH HAS BEEN WEAK FOR NO SPECIFIC REASONS RECENTLY.

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I have highlighted the last sentence in capitals for emphasis, as it is exactly what many of us have been saying all along. The fundamentals have not changed... no matter what the de-rampers will try to tell you.

GLA, scaramouche
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