Gulf Keystone~ (GKP) – Litigation Update
Market Cap £1.7bn Price 201p Target 315p
– Gulf Keystone’s have provided the market with an update regarding the litigation case with Excalibur Ventures. A final resolution of the case is not anticipated until May/June 2013 although Excalibur has been ordered to pay £8m in court costs within 3 weeks.
– We view the court case as something of an anchor to the current share price, given the ongoing uncertainty that this is creating, however we believe that operationally the company is sound with Shaikan development on track to reach 30-40kbpd, further exploration/appraisal opportunities at Sheikh-Adi,, Ber Nahr, and Akri Bijeel where 3D seismic is being shot as well as Shaikan-7 (deep). The fact that competitors like Genel (N/R) are now exporting successfully via Turkey shows that a route to market is now open.
– We maintain our BUY recommendation, and see strong catalysts post the Excalibur case being resolved in the form of M&A as well as continued positive operational updates providing further proof of the greater potential of Shaikan.
Vatukoula Gold Mines*# (VGM) – BUY – Positive drilling results at Philip Shaft
Market Cap £27.6m Price 23.5p Target 115p
– Today Vatakoula announce the results of a drilling campaign (9 holes, 1531m) close to the Philip Shaft targeting the Prince William orebody.
– Results show the extension of the orebody together with some other, high-grade, flat-lying, structures, above and below Prince William. Some of these zones are close to existing infrastructure and will now be the target of potential resource upgrades
– Vatukoula continues to show the prospectivity of the mine area which will help in both the short-term and over the longer-term as the company rebuilds this old mine.
– We maintain our BUY recommendation with a price target of 115p
*WH Ireland acts as NOMAD and/or Broker to this company
#WH Ireland makes a market in this company
~WH Ireland provides paid for research services to this company