Exxon (XOM) has reportedly approached Gulf Keystone Petroleum (GUKYF.PK) about a purchase that...

Exxon (XOM) has reportedly approached Gulf Keystone Petroleum (GUKYF.PK) about a purchase that could value the company at about £7B, nearly 5X its current market cap, according the The Independent. Gulf is sitting on a huge crude discovery in Kurdistan, but the government is thought to want an oil giant involved to develop the field. Other majors - including Chevron (CVX) and Sinopec (SNP) - may have interest as well.

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Comments (10)
  • Stone Fox Capital
    , contributor
    Comments (10292) | Send Message
    wow. That would be a shocker if true. Has there ever been that huge of a premium?
    18 Dec 2011, 06:39 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (373) | Send Message
    18 Dec 2011, 07:02 PM Reply Like
  • bigbenorr
    , contributor
    Comments (1226) | Send Message
    Kurdistan.... Is that in Iraq?
    18 Dec 2011, 07:33 PM Reply Like
  • SwingTraders
    , contributor
    Comments (83) | Send Message
    This is somewhat astounding given that Keystone is a publicly held company. No info on the ownership structure of the company, but I'm surprised that there hasn't been a larger run up. Did XOM see more in the data than did GUKYF.PK engineers and geologists?
    18 Dec 2011, 07:40 PM Reply Like
  • Larry Smith
    , contributor
    Comments (3190) | Send Message
    XOM negotiated a drilling agreement with the Kurdistan Government a few weeks ago, the other majors were afraid they might offend the Iraq government if they signed a deal with the Kurds. Iraq initially said the deal couldn't go through, but has since backed off. My guess, is XOM has worked out a deal with all the parties involved that makes everyone happy. Supposedly the oil play there is a big one and the biggest guy on the block wants it.
    18 Dec 2011, 07:48 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3527) | Send Message
    "Supposedly the oil play there is a big one and the biggest guy on the block wants it."


    Or the big one is one of the few able to handle the risk if it all blows up. Politically, Sinopac may be favored as a non-Western company. Either way, peak oil may move out a few years on the calendar.
    18 Dec 2011, 08:17 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
    Will be interesting to see if this plays out.
    18 Dec 2011, 09:52 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2867) | Send Message
    I wonder how many phone taps this British newspaper used to get the story.
    18 Dec 2011, 09:08 PM Reply Like
  • devichs
    , contributor
    Comments (6) | Send Message
    who's long on gulf keystone?
    19 Dec 2011, 02:45 AM Reply Like
  • Alfred Naujocks
    , contributor
    Comment (1) | Send Message
    I have been in GKP.L since September '09 -- put the family silver in, so to speak. It could well be the 'share of shares' that could pay off shortly. Big time!
    23 Dec 2011, 10:18 AM Reply Like
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