Gulf Keystone Petroleum headlining star-studded Proactive One2One events in Dublin and Manchester

Gulf Keystone Petroleum headlining star-studded Proactive One2One events in Dublin and Manchester
1:17 pm
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It has been a quite incredible year for Gulf Keystone Petroleum, one of AIM’s most closely followed and actively traded stocks.

And it will be headlining our One2One events in Dublin and Manchester, giving you, its investors and those monitoring its progress, the chance to hear the word directly from the GKP boardroom.

Presenting will be finance director Ewen Ainsworth, who will walk us through the story to date as well as addressing what is expected to be a barrage of queries about the company’s future plans.

Last month the group raised US$200 million via a placing with investors, showing that even in these rather choppy markets there is an appetite for projects in politically riskier jurisdictions such as Kurdistan in northern Iraq, particularly if they hold world class potential.

Former BP boss Tony Hayward, not normally a man given to hyperbole, recently called the region the last great oil frontier. And the stampede into the country by some of the larger explorers would seem to back up his assertion.

Analyst Andrew Matharu of Westhouse Securities reckons GKP’s is a compelling story – with near-term production, material prospects and a ‘fashionable’ geographical location.

“Kurdistan still has progress to make with the development of its hydrocarbon law and ensuring that export routes for oil producers remain open, but for now it is demonstrating to the London equity capital markets that it is open for business, whereas other addresses remain firmly closed,” he added.

According to Gulf Keystone the new cash will allow the company to increase its focus on the aggressive programme of exploration and appraisal drilling on the Shaikan, Sheikh Adi and Ber Bahr blocks in Kurdistan.

The fundraiser was a major an endorsement of the group’s success and its ability to explore and exploit at least 12 billion barrels of gross oil-in-place across its three licences as it ramps up production.

Also joining us in Dublin are Lydian International, GGG Resources and Respect Your Universe.

Armenia-focused gold miner Lydian, which is also presenting in Manchester, is starting to gain some traction with investors.

In fact there is a real buzz around Lydian now that analysts have digested the fine detail of the preliminary feasibility study on the Amulsar project in the mountainous former soviet state.

TD Securities’ analysis of the company is typical of the upbeat coverage of late. It set a C$4 price target for the shares, which are currently changing hands at C$2.24.

Broker Stifel Nicolaus is even more bullish, valuing the Lydian share at C$4.20 based on an NPV of around US$515 million – almost double the company’s market capitalisation.

July’s PFS covered the Tigranes and Artavasdes areas of Amulsar, which host 1.64 million potentially minable ounces of gold out of a total resource of 2.5 million ounces.

Annual production is predicted to be 123,000 ounces in the first three years rising to 256,000 ounces in year four through to year seven.

The economic assessment put cash costs of the open pit operation at US$419-US$499 per ounce, which is very much at the lower end of the cost curve.

The mine itself would have an initial capital cost of US$162.6 million and it would have an internal rate of return of 45 per cent.

TDS analyst Daniel Earle expects the company to come up with a far more aggressive mine plan when it publishes the definitive feasibility study in the second quarter of next year.

He is modelling average annual gold production of 218,000 ounces at a cash cost of US$413 an ounce, with initial capital costs of US$275 million.

And he expects to see the resource base grow: “While the deposit is of only moderate size at present, we believe that the company has recently made a breakthrough in its understanding of the controls on mineralisation.”

Indeed recent drill results suggest that significant resource growth is possible, Earle says, pointing to intersections of 69 metres and 100 metres at grades of 3.8 grams and 1 gram per tonne respectively.

GGG Resources, meanwhile, is on the verge of a new era as it prepares to consolidate the ownership of the highly promising Bullabulling gold project in Australia.

“Asset consolidation was something that we recognised was needed from the beginning,” said GGG chairman Peter Ruxton recently.

“With an accelerated development plan in motion, coupled with the recent and upcoming JORC update, we feel this is the right time to recommend this deal to our shareholders.”

Finally, Respect Your Universe, which is also presenting in London and Manchester, is creating a buzz around the mixed martial arts scene with its range of sportswear.

It is hoping to turn its cult RYU brand into a mainstream phenomenon that could give some of the big high street names a run for their money.

This is not just a run-of‐the‐mill fledgling sportswear business. It is an international brand-building exercise with mixed martial arts at its core.

And for such a small organisation, RYU has managed to attract some big hitters. It has drafted in senior figures from Nike, Adidas and Motorola and the two former executives of Lululemon Athletica, the yoga brand that is now a worldwide phenomenon.

Joining RYU in London will be Wasabi Energy, LonZim and Beowulf Mining.

Wasabi Energy is a clean technology company, and by far its biggest holding is a 96 per cent stake in Global Geothermal Ltd.

GGL owns the worldwide global patent for the 'Kalina Cyle', which is the most effective way of producing electricity from low heat sources. By using the Kalina Cycle electricity can be generated using waste heat and natural heat sources such as volcanic springs.

LonZim owns an eclectic mix of assets from hotels and land through to an electronic bank transfer system used by 19 of Zimbabwe’s 21 lenders.

Since its listing in December 2007, which raised almost £29 million, the company has completed seven significant transactions and built a portfolio of businesses in Zimbabwe that are well positioned to benefit from economic recovery.

Northern Sweden is the focus of Beowulf Mining’s exploration activity. And in Kallak North and Kallak South it has twin projects which together add up to one potentially world class iron ore deposit.

Chairman Clive Sinclair-Poulton, whose last presentation was both entertaining and informative, joins us to give a progress report.

Joining GKP, Lydian and RYU in Manchester will be New World Oil & Gas, which as certainly hit the ground running.

Since listing in May it has acquired a promising oil block and Belize and is tying up a second acquisition in Denmark.

In parallel the group is shooting seismic in Belize, which will help it identify its first drill target. Behind this frenetic activity is Bill Kelleher, who has big plans for this little E&P play.


Times and dates:

London
• DATE: Tuesday 11th October 2011
• TIME: 5:45pm (for a 6:00pm start)
• VENUE: The Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB
• ROOM: Charles Suite

REGISTER FOR LONDON HERE

Dublin
• DATE: Wednesday 12th October 2011
• TIME: 5:45pm (for a 6:00pm start)
• VENUE: The Shelbourne Hotel, 27 St. Stephen's Green, Dublin, 2 Ireland
• ROOM: Adams Suite

REGISTER FOR DUBLIN HERE

Manchester
• DATE: Thursday 13th October 2011
• TIME: 5:45pm (for a 6:00pm start)
• VENUE: The Midland Hotel, Peter Street, Manchester, M60 2DS
• ROOM: Derby Suite