Could Kurdistan Unrest Hit UK-listed Oil Firms?

Furthermore, the company has focused on moving towards a domestic price for its Sargelu crude oil from its Shaikan-1 discovery.

The promising set of results set the rumour mill in drive with speculation that it had become a takeover target with a possible 250p bid, although analysts have been quick to rubbish the reports as "unsubstantiated".

David Hart, analyst at Westhouse Securities, said the interest in Gulf Keystone will gather pace on growing optimism that a resolution of some sort is on the horizon.

"There seems to be more optimism about finding some sort of resolution, particularly as a coalition government will need the Kurds on side and it will be in their immediate interest to have this dispute settled."

Fellow UK-listed Heritage Oil will no doubt also benefit from a settlement, given that Kurdistan plays a central role in its strategy.

The FTSE 250-listed firm which earlier this year sold off its assets in Uganda, said future plans for drilling in the region will focus on appraisal drilling on the Miran West structure which should kick off in the first half of 2011.

The company said it possesses a "very attractive prospective portfolio that has the potential to create significant shareholder value in the next year through several high impact exploration wells".

Despite its upbeat look, its shares have dropped sharply since it released its interim results at the end of August, amid speculation that it could lose its Miran licence.

Comments are closed.